Carreker announced that one of the largest correspondent bank/check processors in the U.S. has engaged the company to develop Check-21-related software.
Check-21 (officially the Check Clearing for the 21st Century Act), due to take effect October 28, 2004, facilitates the exchange of images in lieu of paper checks, permitting banks to truncate checks & substitute image replacement documents. It is driving considerable change as banks adapt their processes, platforms, & technology to accommodate an increasingly imaged-based environment.
The agreement announced today by Carreker includes software & services for the overall management of substitute checks (called Image Replacement Documents, or IRDs, by the banking industry). This will allow the client to create substitute checks, print & present them to banks that cannot receive images, & electronically archive the index & image information for future needs (such as recreating the original substitute check).
During the early stages of Check-21, as financial institutions are transitioning from exchanging paper checks to images, the client expects to be one of the largest creators of substitute checks. The client uses Carreker's software for storing & distributing images of checks. Check-21 introduces extraordinary complexity into the management of check information & demands a fast, powerful database for capturing significantly greater amounts of information & greater power for accurately routing the information. The client turned to Carreker to enhance its check storage & distribution capabilities to include substitute check management.
Development work on the substitute check & image management software is under way. The client recently successfully deployed Carreker's image archive & delivery software across its enterprise. The Check-21 related software announced today will provide additional functionality in advance of the legislation's effective date.
J. D. (Denny) Carreker, chairman & chief executive officer of Carreker Corporation, said, "This agreement cements our position as the leader in the first 'domino' impact of Check-21, during which banks deploy image exchange, substitute checks, image quality, & image management software to comply with Check-21 & adapt their cost structures to the realities of payment electronification."