Bank of America

Bank of America Provides Nationwide Image Lockbox Services

Bank of America Press Release For Immediate Release October 20, 1999
Reporters May Contact:
Susan Stanley, Bank of America, 415-622-4449 susan.stanley@bankofamerica.com or
Julie Gibson, Bank of America, 312-828-1736 julie.m.gibson@bankofamerica.com

CHICAGO - Taking the next step to help companies realize faster and more accurate receivables management, Bank of America is now the first financial services organization to offer coast-to-coast image lockbox services to wholesale clients through its nationwide image lockbox network. In today's cyber-economy, where information rules, image capabilities can dramatically reduce the time it takes to process lockbox receipts and to access remittance information, allowing corporations to apply cash faster, update credit lines and offer better customer service through online research capabilities. "For companies that are looking for new ways to be more efficient, the coast-to-coast image lockbox service gives new meaning to the value of networking," said Nick Alex, head of US Product Management. "This network not only reduces mail and processing float, but it also gives our clients new tools to transform the way they do business. For example, customer service representatives can confirm receipt of a payment when a client calls simply by pulling up an image."

In the last three months, Bank of America has installed image lockbox capabilities in its Chicago, Los Angeles and San Francisco processing centers. Combined with the existing Atlanta and Dallas sites, Bank of America's lockbox network makes it possible for companies with large numbers of customer receivables to easily collect lockbox receipts from various collection points and deposit them in one consolidated account on a daily basis. Clients can select from the strategically located Bank of America lockbox sites, depending on where their remitters are located. All the money sent in is deposited into the same account, regardless of which lockbox receives it, and clients can review all images in one place. Another key advantage to Bank of America's network is the effect it has on total collection float, the time between a customer mailing a payment and the receipt of good funds by the lockbox customer. Based on the latest Phoenix-Hecht postal survey, conducted in April 1999, using a population-weighted national check sample, the Bank of America network is ranked number one as a nationwide receiving location for wholesale lockbox mail. With the nationwide network, bank clients should experience a minimal amount of mail and availability float, which expedites the check collection process. Bank of America also fared well in the 1999 Ernst and Young Treasury Management Services Survey, earning the number one lockbox position in terms of share of volume.

Bank of America image lockbox clients derive numerous benefits from the service. Dan Taylor, Supervisor of Collections for Norfolk Southern Corporation, a major freight railroad company, says, "At the onset, when Bank of America started talking about imaging, my immediate need was to speed up processing and eliminate paper. We've reduced our processing time by about a day and a half and dramatically improved our ratio of day's sales outstanding." Norfolk Southern also cites significant cost savings from reduced paper storage and from instant electronic access to information that previously required laborious manual searches. The clarity of images and ability to enlarge them reduces research time as well.

In 1995, Bank of America became the first bank to provide wholesale lockbox clients with electronic images of checks and remittance documents instead of paper. The bank's image lockbox service supports Web-browser technology that gives its user secure, encrypted access to information and images over the Internet. Users can also access remittance documents via CD-ROM. The service accelerates the delivery of information and funds to clients, allows electronic rather than manual document searches and reduces the time needed to resolve customer inquiries and exceptions. Clients are able to manage credit lines, research exceptions and apply cash much more quickly than with traditional lockbox programs.

Bank of America, with $621 billion in assets, is the largest commercial bank in the United States, with full-service consumer and commercial operations in 21 states and the District of Columbia. Bank of America provides financial products and services to 30 million households and 2 million businesses, as well as international corporate financial services for transactions in 190 countries. Bank of America Corporation (BAC) stock is listed on the New York, Pacific and London stock exchanges, and certain shares are listed on the Tokyo Stock Exchange.