is approach was simple but admittedly complicated. "If you really want to save in the back office, get rid of the paper," says Geisel. "We've seen giant paper-based operations constrained by waiting for paper to show up. We felt that transactions had to evolve away from it."

Utilizing his background in payment-processing and check-processing software for banks, Geisel recognized that usability and training were key components. He envisioned a lower-cost platform that would work toward better efficiency and provide huge benefits to processors.

The solution: using electronic and image data instead of paper wherever possible. Banks in particular are constrained by regulations that require paper at various steps in the clearing and settlement process. Even though the industry is changing, it will be years before paper can go away entirely - if it ever does.

In 1995, Geisel opened the doors to Alogent, defined today as a technology-based company whose core is centered around developing and delivering open-architecture item-processing software to banks, billers and payment processors looking to make payment processing more efficient and more profitable.

In simple terms, Alogent provides bankers with a way to transition from expensive, error-prone, paper-intensive processing without having to throw out their investment in check- sorter and mainframe systems all at once.

By substituting electronic data and image, then supplementing the process with Internet efficiencies and automation, Alogent speeds daily processing by hours, improves transaction quality by preventing errors from occurring at the point-of-payment, and reduces the workload overall.

Alogent specializes in high-speed, high-volume transaction processing on a server-based platform that processes both paper and electronic payments. Alogent's solutions for front-office deposit automation and accelerated central-item processing are scalable and are based on the Microsoft Windows, SQL Server, DNA and XML architecture.

Back in '95, however, the United States wasn't the target market. Initial interest for Alogent's solutions came from the United Kingdom.

"In growing the business, we actually did a lot of work in the U.K. where clients had substantial need and had the vision," says Geisel. "We were able to pitch our concept successfully to those top-level banks that wanted to get off a main frame and get off paper. We started lightly with pilots and eventually transitioned them off legacy systems." About a year ago, Alogent moved to target the U.S. marketplace in a big way. When top American banks started showing interest, Alogent starting hiring and investing in marketing in the U.S. "We target the largest bank, but that process takes time," says Geisel. "Paper is at the heart of their check operations. They're really curious about our solution."

That curiosity has translated into big business for Alogent, business that is focused on two services. One is putting technology into branch networks at the front-office level, where point-of-payment capture and truncation is initiated. The other is putting technology in the back office, allowing institutions to efficiently deal with an intermixed stream of paper and electronics.

"Technology hasn't been in place in the U.S.," says Geisel. "None of the large banks has yet automated the front-office process to reduce flow to back office. Everything we do automates the deposit process."

That automation can be found in Alogent's use of imaging technology in line with payment processing. According to Geisel, it decreases the workload of tellers on the front end. At the same time, in the back office, Alogent's proprietary, data-matching work flow promises extreme efficiency through that intermixing of paper and electronics.

"What others have done has increased the work in the front office while decreasing back-office processing," says Geisel. "And it's created more errors by not having an efficient work flow. We've created less work, less errors using image technology and work-flow automation. We're not aware of anyone else doing this."

Geisel makes that bold statement because he doesn't believe any other technology-based organization comes at the payment-processing industry from the bank's perspective. "Banks have huge networks themselves," says Geisel. "We focus on that to make more efficient processing. Our goal is improved efficiency software solutions for banks to really get better quality and lower cost as they transition from paper to electronics."

Alogent's hottest product/service is its Sierra suite. Sierra Clearing handles back-office processing while Sierra Xpedite is the front-office product. Both integrate seamlessly with existing legacy systems.

"This is critically important," says Geisel. "What we offer is different from most in that we supplement legacy systems where those traditional systems can't handle the technology. We don't try to unplug their mainframes. We try to supplement them first, then implement more solution at the bank's pace so they can migrate to our solution without inordinate risks."

The price tag on the Sierra suite varies on usage base. One function is cheaper than multiple functions, and the deployment of the software and integration depends on number of functions as well. The turnaround time is from three to nine months, and front office implementation takes less time that back office deployment.

Then there's the training. Depending on implementation, both in-house and on-site training services are included in the price of the product. There's primary supervision of management of systems with Alogent working closely with each customer's IT operations.

Customer support comes in multiple levels as well at Alogent's 120-strong headquarters in Alpharetta, Ga. A 24/7 support capability is complemented by professional services to handle configuration work and shipment of updated versions.

Though Alogent has talked with some of the larger ISOs, its main targets are still the top 100 U.S. financial institutions. To help maximize those targets, Alogent is partnered with some major players, namely, Microsoft, IBM and Unisys. As technology partners, Microsoft and IBM both interact with Alogent on its platform and architecture. Unisys resells Alogent's technology to major billers for remittance processing, and Alogent resells some of Unisys' technology for proprietary scanning solutions.

Alogent is working with two top-10 U.S. banks. One note of interest, according to Alogent statistics, is that more than 50% of all checks written in the U.K. and more than 200 million items per month in the U.S. are processed by Alogent software.

Where is Alogent headed? "I see two things going forward in this industry," says Geisel. "One is electronic conversion at the point-of-sale through the ISO community. Bank-initiated models is the other. I see two avenues to efficiency with slightly different payment steams with these two models duking it out."

Geisel continues, "Because no one has built compelling ROIs, people are trying to figure out which makes sense - either change consumer habits or change processing. Who's going to get to the gate first? I think it will be hand-in-hand."

Geisel sees electronic check conversion evolving in a big way but slowly. He believes electronic transactions will continue to start as paper from the consumer standpoint because consumer behavior won't change the process, the banks and processors will. Along those lines, Alogent is planning on being there for that change.

"Ultimately, if the banks are ready, willing and able to work with the ISO community with in-house solutions, then Alogent may become a viable alternative to third-party processor offerings that don't necessarily reflect the best interests of banks," he says. "Banks have been disintermediated from the point-of-sale. The merchants don't buy bank relationships and bank technology. ISOs sell processing relationships. The banks are concerned about the elimination of the check and are looking and trying to understand the impact of the processors' electronic processing. They are looking for alternatives."

In addition to being that alternative, Alogent is looking outside the bank boxes. "I expect to expand our company to additional points-of-payments outside of the banking industry," says Geisel. "Our technology can adopt whatever truncation models will come out."