Alogent Corporation and BearingPoint Report Indicates $45 Million Annual `Check 21' Savings at Typical Large Bank through `Straight Through Check Processing'.

Business Editors

ATLANTA--(BUSINESS WIRE)--Sept. 24, 2003

Alogent, a provider of payment transaction processing solutions for global financial institutions, remittance and payment processors, and BearingPoint, Inc., (NYSE:BE), one of the world's largest business consulting and systems integration firms, have collaborated on a return on investment (ROI) report which documents the business case for implementing a comprehensive, image-enabled item processing infrastructure at the nation's top 100 banks.

The joint report by Alogent and BearingPoint, a free copy of which is available at www.alogent.com/stcp, documents the savings banks can garner from "Straight Through Check Processing(TM)" (STCP) - before the Check Clearing for the 21st Century Act, the electronic check processing legislation passed by both houses of Congress this year, goes into effect. The STCP concept details how image technology can be used from the earliest point of presentment to boost workflow efficiency, eliminate paper, and build strategic migration from paper to electronic payments.

The study indicates that a typical Tier-1 bank (i.e., banks with greater than $50B in deposit assets) could potentially save more than $45 million per year, and achieve as much as a 70 percent ROI, by implementing STCP. These savings can be realized prior to Check 21, as they do not depend on post-Check 21 infrastructure for image exchange. The simulation model, developed by Alogent, is based on actual bank data and a benchmark study extensively validated by BearingPoint.

Robert Coyan, director of business development at Alogent Corporation, said, "We believe many banks anticipate huge savings from image clearing and settlement, but few grasp the prodigious savings available through reengineering their existing end-to-end workflows. Even more importantly, these savings are within their control and available now, without regard to any larger image exchange infrastructure requirements. Check 21 will usher in a new era of process efficiencies for financial institutions, but the substantial cost savings of straight through check processing are available today."

Check 21 legislation will create an operating environment with a changing mix of paper, data and image, leading eventually to the total truncation of paper at the earliest point of payment. Apart from the anticipated savings associated with image settlement post-Check 21, the study on STCP gives a measurable dollar value estimation of the efficiencies garnered by implementing image capabilities now.

"The vast misconception in the industry is that image capture at the processing center should be the target for high dollar processing efficiencies," said Kere Lewis, a managing director with BearingPoint's Financial Services business unit. "Capturing image and data at the center is a day late in the processing world and sidesteps efficiency gains available at points of presentment. The report gives evidence of how larger institutions can begin cost savings now, by implementing image-enabled re-engineering now, and be even better prepared for the provisions of impending Check 21 legislation."

Lewis noted that image efficiency and the electronification of paper needs to begin earlier in the branch and other points of presentment, and continue straight through the rest of the processing chain. "This eliminates a number of expensive, manual touch-points that typify today's batch processing environment," he added.

About BearingPoint, Inc.

BearingPoint, Inc. (NYSE:BE), formerly KPMG Consulting, Inc., is one of the world's largest business consulting, systems integration and managed services firms serving Global 2000 companies, medium-sized businesses, government agencies and other organizations. We provide business and technology strategy, systems design, architecture, applications implementation, network, systems integration and managed services. Our service offerings are designed to help our clients generate revenue, reduce costs and access the information necessary to operate their business on a timely basis. Based in McLean, Va., BearingPoint has been named by Fortune as one of America's Most Admired Companies in the computer and data services sector. For more information, visit the Company's Web site at www.BearingPoint.com.

About Alogent

Alogent is a financial services technology company with proven global success in providing payment processing solutions that enable banks, billers and outsource processors to reduce costs, accelerate timelines and improve quality in check and item processing.

Alogent's solutions help banks adapt to Check 21, check truncation and paper-to-electronic transformation. They include solutions for deposit automation, image based centralized item processing, image exchange and our unique Straight Through Check Processing(TM).

Alogent products process over a billion transactions a year in the U.S. We provide the platform to process 70 percent of all checks written in the UK. Its solutions are being deployed to effect the largest deposit automation deployments in the world. Alogent brings proven credibility and leadership to help global customers address mission-critical challenges.

Contact Alogent: In the USA, 4005 Windward Plaza, Second Floor, Alpharetta, GA 30005. Main Ph: 1 [phone]; Toll Free: 1 [phone]; Fax: [phone]; Email: [e-mail]. UK Sales: Phone: [phone]; Fax: [phone]; UK Sales: [e-mail].

Editors Note:

To learn more about the Straight Through Check Processing workflow, which the report is based on, visit www.alogent.com/stcp.