Fiserv and the Endpoint Exchange Network Announce Agreement to Exchange Check Images between Networks
May 03 2005 - 10:00AM
Business Wire
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.
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