Bank Owned Courier/Messenger Service
By: Dana S. Hampton, Director of Corprate Activities
Recently we have received more and more inquiries regarding the ability of bank employees to pick up and deliver items relating to transactions between the bank and its customers. Since K.S.A. 9-1111 defines branch banking to include receiving deposits, paying checks, or loaning money, these activities may only be conducted at the bank's main office or an approved branch office. However, a bank may also establish a messenger/courier service to perform these functions. A bank-owned courier service is a service offered by a state bank to its customers to pick up from and deliver to specific customers items related to transactions between the bank and customers.
Prior to operating a courier service, a branch application must be filed with the Bank Commissioner; a specific application form has been developed for this type of branch. Before establishing a courier service it is important to make certain that adequate insurance coverage is in place for the level of risk involved with the service. Additionally, a written policy should be developed to outline specific operating procedures for conducting the service.
At this time two state-chartered banks offer customers branch services through approved bank owned couriers. In establishing the courier service, management of each institution indicated the courier service was a way for their bank to offer additional services to bank customers without the cost of constructing a branch office. Officials of Alliance Bank, Topeka, were contacted regarding their service indicating they are pleased with the success of the service and anticipate it will continue to grow as additional customers take advantage of the service.
If you are interested in establishing a bank owned courier, please contact the OSBC for additional information. A copy of the application form may also be reviewed on the OSBC web page.
