Bank of America (NationsBank)

NationsBank to Unveil Next Generation of Web-based Lockbox Image Processing in '98

November 5, 1997 - NationsBank, the nation's largest provider of wholesale lockbox services, announced today that it will be unveiling the next generation of image-based lockbox processing in the first quarter of 1998. With the future of technology in mind, the new lockbox processing platform was designed to lead NationsBank customers into the 21st century. The new system, called Lockbox 2K, is currently under development with VICOR Inc.

"Everyone is familiar with reducing mail float, which is why lockboxes were invented in the first place," says Nick Alex, managing director, Global Treasury and Trade Product Division. "But today, its become more important to our customers to focus on reducing information float. That's because the speed at which the information becomes available is critical in a company's efforts to make informed decisions, provide better customer service and create efficiencies they can take to the bottom line."

"We looked at all the image-based lockbox systems on the market today and found that, from a production standpoint, none met our requirements. When you have customers who might receive 75 invoice documents with a single payment, you need a system that is built for speed. This next generation of imaged- based processing incorporates document scanning technology that allows us to scan up to 4,000 documents per hour—almost seven times faster than other lockbox imaging systems," says Alex.

Checks and associated documents are also scanned much earlier in the process which give NationsBank image customers access to their lockbox information hours earlier than customers using other lockbox imaging systems. This reduction in information float allows companies to update customer accounts more quickly and, in effect, shorten the sales cycle by releasing credit lines and/or goods for credit-sensitive customers.

NationsBank was the first bank nationwide to provide wholesale lockbox customers with images of checks and remittance documents. But today's technologically advanced companies want greater functionality from an image system. "Customers are chomping at the bit to find new ways to automate their receivables processing, and resolve exceptions faster," says Alex.

Exceptions occur when the amount a company is paid does not match the invoice amount. For many corporations, the number of exceptions can be a significant percentage of their total payments. That is why one goal of the Lockbox 2K system is to provide customers with access to images of remittance, check, and related correspondence throughout the day. The new processing platform supports web-browser technology that will give NationsBank customers secure encrypted access to the information and images over the Internet. Internet access also allows multiple areas and individuals within the company to view receivables information simultaneously.

The platform will also support robust search capabilities and event notification options, providing customers with a viable interactive receipts management tool. For example, customers who want to know when a particular payment is received by the bank can request the system to notify them automatically, a process commonly known as event notification. Customers can also select how and when to be notified on a daily basis. This feature is especially useful to customers who want notification of a particular payment one day, and notification of payments over a certain dollar amount the next.

Delivery options for the event notification feature include: automated paging, facsimile and Internet email. Finally, the new platform will generate color images of remittance documents, regardless of size or shape. Color provides a clearer copy of green bar paper that is often used in the invoicing process. Sharper images of handwritten notes or markings that often explain payment terms or discounts taken make it easier to resolve discrepancies between the invoice amount and the actual payment.

"We are extremely pleased to have this next generation of Lockbox imaging within our grasp. The most exciting part of all is that we've enhanced our ability to take on additional receivables processing activity, such as cash application and research resolution, for customers who want to outsource all of their receivables processing," Alex adds.

NationsBank is the fifth-largest U.S. banking company, with $242 billion in assets as of September 30, 1997. With primary retail and commercial banking operations in 16 states and the District of Columbia, NationsBank provides financial products and services nationally and internationally to individuals, businesses, corporations, institutional investors and government agencies.