Branch Capture

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Branch Capture Image Exchange

• Lisa Coffey
• Vice President Item Processing

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Branch Capture Image Exchange
Paying Institutions

• Current US Check Clearing System

Depository Institution
Other Checks
Payee
Payor
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Branch Capture Image Exchange

• Current US Check Clearing System

Paying Institutions
Same Day Settlement
Depository Institution
Correspondent
Federal Reserve
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Branch Capture Image Exchange

• Current US Check Clearing System

Paying Institutions
Depository Institution
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Branch Capture Image Exchange

• Current US Check Clearing System

Paying Institutions
Depository Institution
2
2
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Branch Capture Image Exchange

• Current US Check Clearing System

Paying Institutions
Depository Institution
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Branch Capture Image Exchange

• Current US Check Clearing System

Paying Institutions
Depository Institution
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Branch Capture Image Exchange

• Current US Check Clearing System

Paying Institutions
Depository Institution
000007500
987654320
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Branch Capture Image Exchange

• Current US Check Clearing System

Paying Institutions
Depository Institution
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Branch Capture Image Exchange

• Current US Check Clearing System

Paying Institutions
Depository Institution
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Branch Capture Image Exchange

• Current US Check Clearing System

Paying Institutions
Depository Institution
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Branch Capture Image Exchange

• The future of deposit processing in a Check 21
  environment is Southeast Corporates EZ Deposit

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EZ Deposit Reality

• Three significant events have made Branch
  Capture Image Exchange a reality.
• Small, relatively inexpensive image/micr capture
  devices are now readily available
• Software has been developed to support several of
  these capture devices that spool images and micr
  across a network to a central capture center.
• Establishment of electronic exchange networks
  that allow member financial institutions to clear
  their check-based transactions electronically
  eliminating costs of processing paper items and
  courier expenses

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EZ Deposit Process

• Deposit items can be captured at the branch
• A capture device installed behind the teller line
  where an individual periodically collects work
  from each teller and processes each item

Branch Scanner
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EZ Deposit Process

• As deposited items are captured the images are
  displayed for a teller or balance operator to
  amount key and balance.
• OR
• As deposited items are captured, the images
  are displayed at SECorp to amount key and
  balance.
• Eliminates Microfilming!

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EZ Deposit Process

• Since deposit items are truncated at the branch,
  balancing discrepancies can be readily resolved
  since the teller has access to the work.

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EZ Deposit Process

• An electronic file is created from the captured
  deposit items and transmitted to Southeast
  Corporate for collection.
• Deposit items are truncated at the branch.
• Reg CC does not stipulate a time in which the
  physical items must be kept.

Southeast Corporate
Credit Union Branch
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EZ Deposit Process

• The operation is as simple as this..

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EZ Deposit Process

• Southeast Corporate partnered with Endpoint
  Exchange to become part of a network of financial
  institutions to clear check-based transactions by
  allowing for the exchange of check images between
  member banks, thrifts, credit unions, service
  bureaus, clearinghouses, and the Federal Reserve.
  

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EZ Deposit Process

• SECorp installed Endpoint Exchange in July
• Currently processing electronic exchange files in
  Test Mode
• Processing as many as 20 thousand items per day
  electronically
• Image quality is meeting standards
• Images appear the same on Image Depot and Home
  Banking as if we processed the actual paper items

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EZ Deposit Process

• As a member of Endpoint Exchange, Southeast
  Corporate can
• Receive electronic deposit files from branches
• Transmit these files through Endpoint Exchange
• Archive images

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EZ Deposit Process

• Electronic Clearing Process

Item Processing System
Branch Scanner
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EZ Deposit Pilot

• The SECorp EZ Deposit pilot with Florida Telco
  Credit Union began in May 2004.
• - Piloting one branch
• - Installed 1 PC workstation and 1 SourceNDP
• - Trained staff and provided step by step
  procedures
• - Tellers are keying and balancing batches
  behind teller line
• - Uploading deposit information to SECorp
  after deposit is balanced
• - Deposit items are delivered to SECorp for
  proof and collection.
• October 2004 Southeast Corporate plans to begin
  testing a Branch Capture option where SECorp
  amount keys and balances the deposit.

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The Benefits of EZ Deposit

• Replaces Microfilming
• Flexibility in balancing deposits
• - CU can balance deposit or
• have Southeast balance
• Eliminates Encoding Costs
• Speeds Up Collection
• Same day collection on items
• captured by noon CT
• Reduces Courier Costs
• Makes courier more flexible or unnecessary
• Deposit Deadlines Become Less Significant
• Provides Image Research Capabilities
• Image exchange is simplified because Southeast
  maintains a database of financial institutions
  accepting electronic presentment

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Branch Capture Image Exchange

• Key differences
• No membership fees to different exchange
  networks.
• No negotiating additional hardware and
  software costs.
• Do not have to maintain sort patterns to
  ensure the highest percentage of items can be
  image exchanged.
• Can combine items to be exchanged with items
  that cannot be exchanged resulting in only one
  cash letter.

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Branch Capture Image Exchange

• Credit Unions may implement in phases
• Prepare the deposits, capture, image, balance and
  deliver the items to image exchanges, including
  the Federal Reserve Bank
• Once Check 21 is enacted October 28, 2004, your
  entire deposit can be transmitted to Southeast
  Corporate

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Branch Capture Image Exchange

• BRANCH CAPTURE HARDWARE SOFTWARE
• Software
• Branch Capture Licenses (Per credit union
  SECorp amount keys) 1,500
• Subsequent Licenses (per CU Branch 10 or more)
  750
• Branch Check Processing Licenses (Per credit
  union CU amount keys) 2,500
• Subsequent Licenses (per CU Branch 10 or
  more) 1,250
• Maintenance per copy (per year) 14
• PC Anywhere Software (per copy) 105
• Hardware
• Unisys SourceNDP 4,100
• Cannon CR180 4,000
• Maintenance pass thru from
  Vendor
• PC Dell Optiplex GX-270 1300
• Staging of Hardware/Software (per PC) 750

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Investment For A Four Branch CU
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Branch Capture Image Exchange

• PER ITEM FEE SCHEDULE
• SE Corporate plans to publish its fee schedule
  in October 2004.

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Branch Capture Image Exchange

• Southeast Corporates goal is to provide the
  most cost effective solution to accommodate Check
  21 and make the transition as simple as possible
  for your credit union.
• Remember It is not a requirement to have a
  hardware/software solution on October 28, 2004.

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Questions???

• THANK YOU!