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 Module Account 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 *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 *Digital Insight proprietary file formats

The Value of ARP To 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 Gaps Companies with decentralized treasury operations can now view images and make exception decisions corporate-wide

The Value of ARP To 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

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