AXIS™ Cash Management Reconciliation Services and Check

Imaging

Michael J. Abare, CCM

Product Manager

AXIS™ Cash Management Reconciliation Services and Check Imaging

• The Costs of Check Fraud

• AXIS™ Cash Management, Reconciliation Services (ARP) Module Overview

• The Value of Check Imaging with the ARP Module

• Q & A

Why Reconciliation Services?

“Cut the losses”Check Fraud Statistics

Paper-checks still huge part of our payments system

Roughly 50 billion checks are processed each year

Check Fraud is the fastest growing crime affecting the nations financial system with the number to rise at an alarming rate.

Actual losses $650 to $700 million to Financial Institutions Costs business up to 15 billion a year Intangible costs

Lower employee moral Higher security and legal expenses Tarnished business reputation

$1.00 Fraud = $5.00 total losses

Reconciliation Services Module• Account Reconciliation automates the reconciliation of the

commercial customer’s check register.

• Commercial customer provides the list of issued checks – input or upload

• Items are compared against paid check information provided by the financial institution via the standard account history interface

• AXIS™ Cash Management compares outstanding checks with serial numbers, issue dates and dollar amounts

• These reconciled items are then listed in an online register where the commercial customer can search, sort, filter and download these items

Reconciliation Services Module• Reverse Positive Pay addresses fraud prevention by

• validating the checks paid by a financial institution

• automatically matching the items against customer-issued check records.

• detects counterfeit items including:

• items having duplicate serial numbers

• voided checks presented for payment

• checks with altered amounts.

• stale items presented for payment

• Items not matching a corresponding item in the register are flagged as exceptions and referred to the customer for a pay/no pay decision.

• Positive Pay a service used for fraud control. • The company transmits a file of issued checks to it’s financial

institution. Using an ARP processing system, the financial institution matches serial numbers and dollar amounts and pays only those checks that match and reports any exceptions

Who’s using it? AXIS™ Cash Management ARP module is suitable for:

• Any size financial institution (FI)

• FIs providing ARP services today

• FIs desire to introduce a new service without the costs of a DPV ARP processing system

• Value! FI may choose to purchase the ARP product to meet the needs of just one large customer

End-user Profile

• $100 million in revenue / sales

• Issues 1,000 checks a month

• Victim of fraudulent activity

Reconciliation Services ModuleAccount Reconciliation / Positive Pay (ARP Option I)

• Requires DPV ARP processing system

• File conduit

• True Positive Pay

• End-user issues and exception management

ARP Module Product Overview – Option 1

Database

Issue Entryand

File Upload

IssueFile*

Custom erP latform

FI-Adm in

AXIS Cash Managem ent

IssueFile

Download

ExceptionFile Upload &Managem ent

IssueFile*

ExceptionFile*

Custom er'sF inancialSoftware

M iddlewareTranslator(optional)

FI's ARPSystem

Enter Issues

ExceptionManagem ent

EnterDecisions Process

Decisions*

ExternalSystem

IssuesRegister

*Digital Insight proprietary file formats

ARP Module Product Overview – Option II

• DPV ARP System Independent!

• Digital Insight managed Account Reconciliation

• Digital Insight managed Reverse Positive Pay

• Enhanced exception management and communications

• Enhanced online register

• Check Imaging

• Check Search

• Sort / Filter

ARP Module Product Overview – Option II

Database

Issue Entryand

File Upload

IssuesFile*

Custom erP latform

FI-Adm in

AXIS Cash Managem ent

ExceptionManagem ent

Custom er'sFinancialSoftware

MiddlewareTranslator(Optional)

Enter Issues

ExceptionManagem ent

EnterDecisions

ProcessDecisions*

ExternalSystem

IssuesRegister

FI Host / DPV

*Digital Insight proprietary file formats

The Value of ARPTo the Commercial Customer

AXIS™ Cash Management ARP module provides one of the most effective methods available to protect against the financial loss associated with check fraud.

• Easily import new issues, voids, and cancellations

• Reduce fraud by ensuring that their records and the FI’s are synchronized

• Increased fraud protection by automatically detecting unauthorized checks

• Enhanced control over whether a discrepant check should be paid

The Value of ARP & Check Imaging

To the Commercial Customer – cont.

“Cut the paper Chase” Quickly manage exceptions by viewing an image of the

questionable check

- No Call to Financial Institution- No Waiting for research

Bridge the Information GapsCompanies with decentralized treasury operations can

now view images and make exception decisions corporate-wide

The Value of ARPTo the Financial Institution

• Expand current product offering

• Fee income

• Customer retention

• Leverage existing DPV ARP offering

• Offer robust ARP services independent of costly DPV ARP systems

Positive Pay FI 1 - FI Assets >$10B West RegionMonthly Base Charge - per account 100.00$ Issue Input - per file 10.00$ Issue Input - per transaction 0.06$ Exceptions Items - per transaction 0.20$

Positive Pay FI 2 - FI Assets >$500M Midwest RegionPlan Monthly Fee - per account 50.00$ First 1000 items -$ Each item over 1000 0.05$

Sample FI Account Reconciliation/Positive Pay Fee Schedule

The Value of ARP & Check Imaging

To the Financial Institution

“Cut the paper chase”

ARP with Check Imaging allows the financial institution to get out of the research

business….

Your making the images of the questionable check readily available to the customer…

Placing the control in their hands streamlines the process and improves productivity.

AXIS™ Cash Management Reconciliation Services and Check

Imaging

Q & A