Solutions Update

©2014 CONIX Systems, Inc.  Detective Suite Overview/Update –Dupe Detective –Fraud Detective –Real-Time Inquiry –Cross-Bank Inquiry –FTM Interface  TCMx / Server-Based Settlement Agenda 2

©2014 CONIX Systems, Inc. FTM Dupe Detective DD Extract New Items FTM-DD Drop Folder Duplicate Detection Item/UOW Update Process Duplicate Results (XML) Incoming In Work Completed Archive Dupe Detective FTM Interface As new payments are introduced and validated in the FTM system, an interface file is created and made available to DD that contains all pertinent item information. After the duplicate analysis is completed, DD creates and makes available to FTM an export file containing the results. Upon receipt of a new results file, the items are updated in FTM and a flag is set to indicate the completion of the duplicate detection process for that unit of work. 3

©2014 CONIX Systems, Inc. Day 1 Duplicate Detection and Real-Time Inquiry Dupe Detective Landing Zone Multi- Bank Business Rules & Filters Web Interface Global Log Reporting Detective Suite Infrastructure Payment Systems Cross-Channel Incoming & Outgoing Outgoing Returns Image Archives Suspect Review Suspect Review X9 Inspector X9 Inspector Image Analytics Image Analytics Real-Time Inquiry (Optional Feature) (Optional Feature) 4

©2014 CONIX Systems, Inc. Day 1 Fraud Detection and Real-Time Inquiry Fraud Detective Landing Zone Multi- Bank Business Rules & Filters Web Interface Global Log Reporting Detective Suite Infrastructure Payment Systems Cross-Channel Image Archives Suspect Review Suspect Review AccountMetrics Account Metrics Image Analytics Image Analytics (Optional Feature) (Optional Feature) Account Updates Real-Time Inquiry DDA 5

©2014 CONIX Systems, Inc. Fraud and Duplicate Detection – Batch Workflow Automated elimination of false suspects Payment Systems Returns Fraud Cross-Channel Payment Selections Operator Decisions Confirmed Disposition ACH Federal Reserve & Exchange Partners Mobile Capture RDC Check Capture Suspects Image Analytics Business Rules Remove Re-presentments Business Rules & Image Analytics Automated routing based on dispositions Automated suspect dispositioning Automated payment processing Check Stock Validation Signature Verification Suspects Fraud ControlsMICR Match Suspects 6

©2014 CONIX Systems, Inc. Fraud and Duplicate Detection – Real-Time Inquiry Detective Database Inquiry Suspect Identification Optional Processing* Results Teller ATM Other Systems * Availability of optional processes varies based on operating mode (full-service vs. inquiry only) 7

©2014 CONIX Systems, Inc.  Cooperative FIs inquire on each others’ duplicate databases to identify suspects before presentment  FIs avoid losses and reduce adjustment costs  Potential for fee income from retail merchants, check cashers, and other non-banking entities  CBI Switch provides management of communications between FIs Cross-Bank Inquiry Early detection of duplicates and fraud closes the gap between returns and fund withdrawals 8

Sample Cross-Bank Inquiry (CBI ™) Batch Workflow Ingest Input Transactions Presenting FI Image Archives Business Rule  R/T Lookup Suspect Merge Export Owning FI Image Archives Inquiry Suspect Review Presenting FI Owning FI Exchange R/T Items Exchange R/T Items Presenting FI Suspects Owning FI Suspects Business Rule & Filters Business Rules & Filters 9

Sample CBI Real-Time Workflow Single transmission per UOW with all items drawn on Bank B. Use CCI with security through IIS. Items not ingested, simple inquiry on Database. Single return transmission with results of inquiry on all items sent. New functionality will be added to Business Rules to cover these external (cross-bank) items. Bank A (Presenting) Bank B (Owning) Item Inquiry Bank A DD/FD done first. If not a suspect(?) And Not On-Us CONIX Partners Table Bank B’s Disposition Code, External Inquiry flag set Business Rules Messaging Service External Inquiry flag can be tested. Along with R/T value check, Bank B’s code can be converted to Bank A’s. CONIX Partners Table Messaging Service 10

CONIX Payment Validation Network (CBI Switch) Single Switch  Each network member maintains one control for communications with the switch. This covers communications with any other institution that communicates through the same switch.  For institutions that choose not to use the switch, institution-level controls must be maintained.  Switching services can be provided by a banking or non-banking institution. Bank D Bank B Bank C Bank A Bank C Inquiry Bank D Inquiry Bank B Inquiry Bank B has a agreement with Bank A only. The switch maintains controls for all of its member institutions. Bank A maintains one primary switch control for communications with member institutions. Switch Bank A Inquiry Non-Bank 11

CONIX Payment Validation Network (CBI Switch) Multi Switch (Primary)  Each member maintains one control for communications with one primary and one or more alternate switches. If one switch becomes inoperable, the members can use the alternate switch.  All alternate switches maintain control for their own primary customers and customers of other switches that act as primary for those same customers. Bank B has a agreement with Bank A only. Bank A maintains one primary switch control that is normally used for communications with member banks. Bank A Bank B Bank C All Inquiries Bank C Inquiry Bank B Inquiry Bank D Bank E Switch 1 Switch 2 Bank D Inquiry Bank E Inquiry Inquiries that A sends to Switch 1 for Banks D and E are passed thru to switch 2. Bank A Inquiry Non-Bank Bank A Inquiry 12

©2014 CONIX Systems, Inc.  Ingests and Groupings  Online Inquiry  Accumulator/Cell Editing  Entry Editing  Reporting  File Generation  EOD (Clear)  Holdover  Interface with Cashletter System/CLAS TCMx/Server-Based Settlement TCM Features 13

©2014 CONIX Systems, Inc.  Item-Level Detail  Extract Function  Input Unit of Work Types  Input File Format  Timing of Feeds TCMx/Server-Based Settlement Additional Features 14