The Federal Reserve said Wednesday it will consolidate its check-processing operations, moving work currently done in Helena, Mont., to the Denver branch of the Federal Reserve Bank of Kansas City.
“It is too early to tell if taking on the check volume from Helena will translate into added jobs,” said Lowell Jones, a spokesman for the Kansas City Fed. “But we do know that Denver will not lose jobs by taking on the Helena work.”
The Federal Reserve employs 230 full-time workers in its Denver branch, 93 of whom work in check processing, Jones said.
About 280 jobs will be eliminated nationally as a result of the consolidation. Cities receiving additional processing work could add 150 jobs overall, the Fed estimated.
The consolidation is being driven by a sharp drop in the number of checks being written – from 50 billion in 1995 to 37 billion in 2003. Check volumes are falling because more people pay their bills online and rely on debit and credit cards to make transactions.
The implementation of Check 21 in 2004, which allows banks to convert paper checks into electronic images and quickly send them across the country, has also reduced the volumes at paper- check-processing centers.
In 2003, the Fed processed checks at 45 locations. With the most recent announcement, it will rely on 18 processing centers.
In addition to the Denver switch, check-processing operations at the Kansas City Fed will transfer to the Federal Reserve Bank of St. Louis.
The Federal Reserve Bank of San Francisco will shift its check-processing operations to its Los Angeles branch.
Check-adjustment functions, which resolve errors in the check-collection process, will be ended at Federal Reserve locations in Detroit; Helena; Houston; Memphis, Tenn.; and San Francisco.
Staff writer Aldo Svaldi can be reached at 303-820-1410 or asvaldi@denverpost.com.
