the 'new' lockbox: thinner. faster. better....the "new" lockbox: thinner....

The "New" Lockbox: Thinner. Faster. Better.

September 2012

Blaine Carnprobst Managing Director, Receivables BNY Mellon Sam Golbach Senior Vice President WAUSAU Financial Systems Ed McLaughlin RemoteDepositCapture.com

BNY Mellon

Asset Management Wealth Management Securities Servicing Treasury Services

Multi-boutique investment manager

Wealth management for individuals and families

Full range of financial operations offerings

Cash management and global payments services

$1.2 trillion assets under management1

8th largest US asset manager3

11th largest global asset manager4

$176 billion in private client assets1 Top 3 ranked private bank in US5

Top 10 US wealth manager6

$26.6 trillion assets under custody and administration1

$11.9 trillion outstanding debt serviced1

$1.8 trillion tri-party balances daily1

$1.4 trillion average payments processed daily1

170,000 transactions conducted daily1

100+ currencies in which we transact

1- As of March 31, 2012. 2- Aggregate assets under management of $1.3 trillion. 3- Institutional Investor, 2011. 4- Pensions & Investments, 2011. 5 - Barron’s Penta, December 3, 2011. 6 – Barron’s, September 19, 2011.

Investment Management1 $1.3 trillion total assets under management2

Investment Services1 $26.6 trillion assets under custody and administration

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• BNY Mellon operates in 36 countries and over 100 markets

• Global Service, Local Delivery – Services delivered around the world – Seamless global network for cross-border speed and convenience – Our experts are located in-market for close collaboration with clients

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BNY Mellon’s Global Presence

Americas 31,000+ BNY Mellon employees

EMEA 9,000+ BNY Mellon employees

Asia-Pacific 8,000+ BNY Mellon employees

BNY Mellon Locations


BNY Mellon U.S. Infrastructure

Dallas, TX Lockbox

Los Angeles

Chicago, IL Lockbox

Boston, MA Disbursements

Philadelphia, PA Disbursements

Pittsburgh, PA Lockbox, Disbursements, Electronic Services, Data Center

.

Lockbox

New York Trade & Payment Operations, Loan Operations. Disbursements

College Station, TX SourceNet Solutions

Woodland Park, NJ ClearTran B2C solutions

Florida Payments Transfer

Tennessee Data Center


About WAUSAU Key Facts Founded in 1974

Locations: Mosinee, WI (HQ); Lynn, MA; Omaha, NE

Privately Held by Frontenac

Market Leadership • #1 in receivables*

• 3.5 billion+ payments processed annually

• 650+ customer sites

• 50+ Fortune 500 companies

• 8 of top 10 FIs

*Source: TAWPI/Blueflame 2009, TowerGroup 2012


• RDC Lockbox Evolution • Overview • Workflow • Evolution of Receivables Processing • Enterprise • Benefits • Examples

Outline


Processing Challenges

• Consumer/Business demand for faster Funds Availability • Reduced Processing Costs

• Overnight Mail / Address Branch Stranded Payments • Courier Costs • Delayed Deposits / Multiple Bank Accounts

• Risk Mitigation Process • Centralized Review and Processing Requirements • Business Rules Edits • Data Entry

• Limited Deposit options • USPS Rationalization • Physical deposit

Combining Lockbox Processing with a Remote Deposit solution creates a single point process for reviewing and accepting transactions.


Logical Evolution for RDC

• In the beginning – capture deposits • Gradual migration – key data entry fields • Corporate requests for integration increase • Complete automated receivables solutions

– Deposits – B2B payments – C2B payments – Corporate billers – Lockbox providers


Remote Lockbox Deposit Overview • Enables Remote Locations to scan checks and

corresponding remittance documents and transmit directly into a corresponding lockbox

• Remote Lockbox service is designed to address customer issues such as: – ‘Stranded payments’ – Overnight courier fees – Mail float – ‘Desk drawer’ float – Integrating payments into a single Receivables workflow

• Leverages Remote Check Deposit technology • Web-based software application


Remote Office Payment Processing Workflow

Mail or Courier Traditional, Centralized Payment Processing

Remote Payment Workflow

Remote Offices

Mail Extraction Extract, Prep, Sort, Batch

Remote Offices

Remote Capture Electronic Import

Workflow Enhancements No need to transport payments to centralized facility

Easy image capture at point of transaction

Quicker posting and clearing of funds

Image Scan Check, Remittance, Invoice, Correspondence

Data Capture Recognition, Lookup Tables, Data Entry, Balancing, etc.

E-Clearing Eligibility Image Exchange And ACH Eligibility

Clearing Module Selection Image Exchange ACH


Remote Lockbox – Workflow

Lockbox Processing • Batches imported into

lockbox system

• MICR correction

• Virtual endorsement applied

Lockbox

Data Transmission

Image Delivery • Lockbox image archive

• Image transmission

• CD-ROM

Lockbox

Data Entry • Optional: enter data from

scanned check or remittances

Lockbox

Check/Image clearing • Check images

electronically transmitted to check processing for clearing

Lockbox

Payment Prep • Prepare payments

(Check only, or check and remittance)

• Batch payments

• Log onto Remote Check Deposit

Client Office

Payment Receipt • Drop Box payments

• Walk-in payments

• Overnight payments

• Miscellaneous payments

Client Office

Payment Scanning • Select type of payment to

process

• Enter batch total

• Scan checks/ remittance transaction

• Ensure check image is legible

Client Office

Payment Scanning (cont.) • Keying of $ Amount from

check image for CAR /LAR misreads

• Final $ amount reconciliation

• Release batch

• Securely transmit batch to BNY Mellon.

Client Office

Check Deposits and Float Assignment


Enterprise Payments


Remote Lockbox Key Features

Essential Features • Capture full page invoices, coupons, envelopes, checks • Software OCR to read coupon OCR scanline • Validate fields by parsing scanlines, using eips, check

digits • Balance documents to checks • Additional data entry fields • Ability to customize A/R files • Ability to integrate with central lockbox


Remote Lockbox Remittance Functionality

• Can be used in conjunction with existing lockbox(es) • Captures document scan lines • Check & associated payment document scanning • Data capture for A/R transmission:

– Data captured at the field “capture” point – Data captured through the Lockbox workflow

• Leverages single scanning device to scan checks and up to 8 ½ X 11 documents – Capture front and back of documents – All scanned transactions are combined with existing paper

lockbox items and workflow – Data captured is included in daily accounts receivable file – Transaction images can be included in an image transmission, available

on-line and/or on a monthly CD-ROM


Integrated Remote Lockbox Deposit Benefits

Utilizes existing lockbox processing for deposit, data transmission and image archive

• Reduces branch deposits, overnight courier fees and time spent preparing deposit packages

• Reduces risk associated with uncashed checks in client office

• Optimizes funds availability

− Provides more control over deposit timing

− Typically decreases float by a minimum of one day over courier packages

• Improves straight-through processing by eliminating manual posting

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Benefits for Payments Offerings

• Financial institution/lockbox provider – Expand solution marketability – Increase lockbox volume and revenue – Increase deposits – Improves ability to retain customers – Reduction in paper handling, improve errors

• Corporates – Single service delivery point for payments – A/R, hub, reporting – Improves efficiency by combining workflow steps – Decrease cost for mailing stranded payments – Decrease the number of banking relationships – Improve posting and float time


Remote Lockbox Example


Questions?


About The Presenters Sam Golbach • WAUSAU Financial Systems • [email protected]

Blaine Carnprobst • BNY Mellon • [email protected]


mailto:[email protected]

mailto:[email protected]

the 'new' lockbox: thinner. faster. better....the "new" lockbox: thinner....

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