Fiserv and the Endpoint Exchange Network Announce Agreement to Exchange Check Images between Networks
Fiserv and the Endpoint Exchange Network Announce Agreement to Exchange Check Images between Networks
May 3, 2005
Fiserv and the Endpoint Exchange Network Announce Agreement to Exchange Check Images between NetworksBROOKFIELD, Wis.--May 3, 2005--Fiserv, Inc. (Nasdaq:FISV) and the Endpoint Exchange Network today announced an agreement to establish system connectivity to allow for the electronic exchange of check data and images between their respective networks. The Endpoint Exchange Network is part of the Metavante family of companies; Metavante Corporation is the technology subsidiary of Marshall & Ilsley Corporation (NYSE:MI).
An initial pilot exchange from the Fiserv Clearing Network is expected in the third quarter. Following the pilot, more than 4,000 financial institutions that are clients of Fiserv for account processing and outsourced check processing will be able to exchange images with the Endpoint Exchange Network's more than 4,000 members.
The Fiserv Clearing Network is currently operating in five Fiserv check processing facilities; additional locations are expected to open by year-end. The Fiserv Clearing Network provides the opportunity for financial institutions to reduce their check clearing costs in today's paper-based world and realize further value as image exchange gains a stronger presence in the future.
The Fiserv Clearing Network provides smaller financial institutions the ability to participate in the changes created by Check 21 - and eventually in image exchange - through the aggregation of their volume with that of other financial institutions without having to individually participate in the various exchange networks. The Fiserv Clearing Network enhances forward collection and return item collection for its participants and enables financial institutions with large volumes of checks to clear those items directly with the network.
The Endpoint Exchange Network is a national network through which financial institutions can send and exchange check images rather than paper checks for clearing and settlement. In less than two years, more than 4,000 financial institutions across the country have enrolled in this fully interoperable network.
"The changing ratio of paper to electronic payments presents a business challenge to all financial institutions, which are under increasing pressure to generate efficiencies from their check processing operations," said Ted Umhoefer, senior vice president of product management and industry relations for the Fiserv Item Processing Group.
"The combined reach of the Fiserv Clearing Network and the Endpoint Exchange Network will provide customers of both networks a secure and efficient means to clear checks," Umhoefer said. "This value will continue to grow over the next few years as our client financial institutions make a larger portion of their checks eligible for electronic exchange."
Exchanges between the two organizations will use the ANSI X9.37 standards and the Electronic Check Clearing House Organization (ECCHO) rules set. Settlement will occur through the National Clearing House (NCHA). Fiserv and Endpoint Exchange first established connectivity in October 2004 to enable Fiserv to print substitute checks and image replacement documents (IRDs) for Endpoint Exchange customers in a joint offering of Fiserv, Endpoint Exchange, NCHA, and M&I Marshall & Ilsley Bank.
"Together, the Fiserv and Endpoint Exchange networks provide the economies of scale to justify image exchange for many U.S. financial institutions," said Mark Craig, general manager of CheckClear LLC, a Metavante company that operates the Endpoint Exchange Network. "The use of common rules, a common settlement platform and seamless reach across our combined endpoints has created a compelling value proposition for financial institutions that enroll in either of our clearing networks."
About the Endpoint Exchange Network
The Endpoint Exchange Network enables U.S. financial institutions to clear their check-based transactions by exchanging check images between member institutions. The Endpoint Exchange Network (www.endpointexchange.com) is the country's first electronic check-clearing network that capitalizes on existing imaging infrastructure and settlement relationships, with the interoperability to connect to every endpoint in the nation. Metavante Corporation (www.metavante.com) is a leading provider of image-based check processing and distributed image-capture solutions through the Endpoint Exchange Network, Advanced Financial Solutions (AFS), and VECTORsgi. Metavante delivers banking and payment technologies to financial services firms and businesses worldwide and is wholly owned by Marshall & Ilsley Corporation (NYSE:MI).
About Fiserv
Fiserv, Inc. (Nasdaq:FISV) provides information management systems and services to the financial and health benefits industries, including transaction processing, outsourcing, business process outsourcing and software and systems solutions. The company serves more than 16,000 clients worldwide, including banks, credit unions, financial planners/investment advisers, insurance companies and agents, self-insured employers, lenders and savings institutions. Headquartered in Brookfield, Wis., Fiserv reported $3.4 billion in processing and services revenues for 2004.
Fiserv was ranked the largest provider of information technology services to the U.S. financial services industry in the 2004 FinTech 100 survey by the American Banker newspaper and the Financial Insights research firm. Fiserv can be found on the Internet at www.fiserv.com.
An initial pilot exchange from the Fiserv Clearing Network is expected in the third quarter. Following the pilot, more than 4,000 financial institutions that are clients of Fiserv for account processing and outsourced check processing will be able to exchange images with the Endpoint Exchange Network's more than 4,000 members.
The Fiserv Clearing Network is currently operating in five Fiserv check processing facilities; additional locations are expected to open by year-end. The Fiserv Clearing Network provides the opportunity for financial institutions to reduce their check clearing costs in today's paper-based world and realize further value as image exchange gains a stronger presence in the future.
The Fiserv Clearing Network provides smaller financial institutions the ability to participate in the changes created by Check 21 - and eventually in image exchange - through the aggregation of their volume with that of other financial institutions without having to individually participate in the various exchange networks. The Fiserv Clearing Network enhances forward collection and return item collection for its participants and enables financial institutions with large volumes of checks to clear those items directly with the network.
The Endpoint Exchange Network is a national network through which financial institutions can send and exchange check images rather than paper checks for clearing and settlement. In less than two years, more than 4,000 financial institutions across the country have enrolled in this fully interoperable network.
"The changing ratio of paper to electronic payments presents a business challenge to all financial institutions, which are under increasing pressure to generate efficiencies from their check processing operations," said Ted Umhoefer, senior vice president of product management and industry relations for the Fiserv Item Processing Group.
"The combined reach of the Fiserv Clearing Network and the Endpoint Exchange Network will provide customers of both networks a secure and efficient means to clear checks," Umhoefer said. "This value will continue to grow over the next few years as our client financial institutions make a larger portion of their checks eligible for electronic exchange."
Exchanges between the two organizations will use the ANSI X9.37 standards and the Electronic Check Clearing House Organization (ECCHO) rules set. Settlement will occur through the National Clearing House (NCHA). Fiserv and Endpoint Exchange first established connectivity in October 2004 to enable Fiserv to print substitute checks and image replacement documents (IRDs) for Endpoint Exchange customers in a joint offering of Fiserv, Endpoint Exchange, NCHA, and M&I Marshall & Ilsley Bank.
"Together, the Fiserv and Endpoint Exchange networks provide the economies of scale to justify image exchange for many U.S. financial institutions," said Mark Craig, general manager of CheckClear LLC, a Metavante company that operates the Endpoint Exchange Network. "The use of common rules, a common settlement platform and seamless reach across our combined endpoints has created a compelling value proposition for financial institutions that enroll in either of our clearing networks."
About the Endpoint Exchange Network
The Endpoint Exchange Network enables U.S. financial institutions to clear their check-based transactions by exchanging check images between member institutions. The Endpoint Exchange Network (www.endpointexchange.com) is the country's first electronic check-clearing network that capitalizes on existing imaging infrastructure and settlement relationships, with the interoperability to connect to every endpoint in the nation. Metavante Corporation (www.metavante.com) is a leading provider of image-based check processing and distributed image-capture solutions through the Endpoint Exchange Network, Advanced Financial Solutions (AFS), and VECTORsgi. Metavante delivers banking and payment technologies to financial services firms and businesses worldwide and is wholly owned by Marshall & Ilsley Corporation (NYSE:MI).
About Fiserv
Fiserv, Inc. (Nasdaq:FISV) provides information management systems and services to the financial and health benefits industries, including transaction processing, outsourcing, business process outsourcing and software and systems solutions. The company serves more than 16,000 clients worldwide, including banks, credit unions, financial planners/investment advisers, insurance companies and agents, self-insured employers, lenders and savings institutions. Headquartered in Brookfield, Wis., Fiserv reported $3.4 billion in processing and services revenues for 2004.
Fiserv was ranked the largest provider of information technology services to the U.S. financial services industry in the 2004 FinTech 100 survey by the American Banker newspaper and the Financial Insights research firm. Fiserv can be found on the Internet at www.fiserv.com.