1. ECP in Today’s Changing Payments Environment
Steve Ledford
President
Global Concepts
BITS ECP Forum
Birmingham, Alabama
January 14, 2003

2. Why Image Exchange — Why Now?
Image exchange offers the benefits of interbank truncation, while preserving bank’s check product offerings.
Plans are well underway for image exchange to become a major factor in check clearing over the next few years.
Image exchange has become a viable strategy because of recent developments:
Financial institutions have made major investments in image.
Telecommunication and data storage costs have dropped substantially over the past 2-3 years.
The legal environment is changing in favor of image as a replacement for checks or microfilm.
Bank customers have become comfortable with image.
Image exchange is the best bet to cut check costs.

3. Declining Volume = Unit Cost Increases

4. Image Exchange Reduces Operating Costs

5. Other Image Exchange Benefits
If images can be captured in branches, ATMs, cash vaults or merchant locations, banks can save inbound courier costs.
Virtually all checks can be cleared in 1 day, compared to approximately 1.1 days (on average) today.
Less paper handling should result in fewer errors and fewer adjustments.
Bank operations will be less constrained by geography and the limits of transportation networks.

6. For Additional Information
Steve Ledford
President
Global Concepts