Three-fourths of banks with $1 billion or more in deposits will be using image processing technology in their lockbox operations by 2000, according to research from Mentis Corp.

Mentis said banks are switching to imaging mainly to improve check- processing operations and to meet demand for image-based services from customers.

A recent Mentis study also revealed that more banks are relying on third-party remittance processing services. About one-fourth of lockbox payments are processed through an outside party.

Further, the study showed that acceptance by banks of electronic payments continues to increase, though slowly. Some 53% of retail banks and 31% of wholesale banks with lockbox programs accept electronic payments.

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