ARC Study Aided By Meta Software Determines Savings Potential For Remittance Processors.

Business Editors/High-Tech Writers

TAWPI 2003 - Booth 558

LONG BEACH, Calif.--(BUSINESS WIRE)--June 9, 2003

Meta simulation modeling conducted in support of TAWPI ARC White Paper shows that operational benefits are real but will require workflow analysis to realize

Meta Software Corporation, a leading provider of integrated consulting and software solutions for operational improvement in the financial industry, today announced that its simulation models were used to support The Association for Work Process Improvement (TAWPI) Remittance Processing Council's recent study on the business case parameters for Account Receivable Conversion (ARC). Further, these models reveal that significant operational benefits in the form of increased capacity can be realized by implementing ARC.

The Meta simulation modeling created for the TAWPI ARC study indicates that remittance processors will experience significant operational benefits from ARC only if they are able to exploit the advantages of new-found staff and equipment capacity to re-engineer their remittance processing enterprise. The study was initiated in the summer of 2002 by TAWPI at the request of billers and processors seeking guidance on a framework for evaluating the business case for ARC.

"ARC has attracted a lot of attention from billers because of its potential to expedite the settlement of such consumer transactions and produce better collections and faster notice of returned items," said Robert Seltzer, CEO of Meta Software. "From the remittance processor perspective, our study strongly suggests that it will be possible to realize significant operational benefits in terms of reduced full-time employees, check handling and transport if the remittance processing workflow is reengineered."

ARC, which was devised in early 2002 by the National Automated Clearing House Association (NACHA), is an automated clearing house system application allowing billers and remittance processors to convert consumer checks processed via lockbox into electronic debits. As a result, billers are able to improve payment collections and reduce credit losses while consumers retain a friendly, and familiar, payment vehicle in a check.

"Over the last several years, the banking industry has taken steps to transition away from a dependency on paper checks and ARC is a continuation of that trend," said Chris Haney, Founder and Director of Politzer & Haney, and the study's author. "Initially, the business case for ARC has been driven by biller benefits such as improved collections and reduction in credit exposure - however the modeling by Meta software indicates that significant potential exists for future cost savings in the remittance process itself if a high percentage of checks can be converted to ACH items and removed from the process during 'first pass' processing."

"How to Evaluate a Business Case for ARC Check Conversion: A Practical Guide for Remittance Processing Professionals" by Chris Haney is available from TAWPI at: www.tawpi.org. The output from the Meta ARC simulation analysis is also available at no cost at www.metasoftware.com.

About Meta Software

Meta Software, headquartered in Cambridge, Mass., is a leading provider of integrated consulting and software solutions for operational improvement in the financial industry. Many of the largest check and remittance processing organizations in the United States use Meta payment specific analytical environment - Meta SoftWorks for Checks(TM) and MetaSoft Works for Remittance(TM)- for capacity analysis and workforce management solutions that deliver optimum performance in operations where change is constant. These solutions ensure that clients achieve the optimum balance between profitability and customer service. For more information, visit Meta Software's web site at http://www.metasoft.com.