VICOR Tailors Its Advanced Receivables Processing Platform for Mid-Tier Banks.Business Editors RICHMOND, Calif.--(BUSINESS WIRE)--March 12, 2002 RIDS Combines Color Imaging and Secure Internet Delivery of Intra-Day Information to Reduce Corporate Information Float The time it takes to make information available to employees or to the public after it has been captured. and Accelerate Exceptions Resolution VICOR, Inc., the leading provider of end-to-end solutions for image-enabled receivables processing, announced today the availability of its advanced payment processing and cash management platform for mid-tier banks. Called RIDS (Receivables Information Delivery System), VICOR's client-server platform is now specifically configured to accommodate financial institutions with 50,000 or higher monthly wholesale lockbox Lockbox A collection and processing service provided to firms by banks, which collect payments from a dedicated postal box to which the firm directs its customers to send payment to. items in a single site or a regional configuration. RIDS offers banks color imaging and the ability to provide clients with intra-day delivery of receivables information (data, images of checks and documents) via the Internet. The introduction of RIDS for mid-tier banks comes as color imaging and intra-day information via the Internet are becoming de facto [Latin, In fact.] In fact, in deed, actually. This phrase is used to characterize an officer, a government, a past action, or a state of affairs that must be accepted for all practical purposes, but is illegal or illegitimate. industry standards for efficient processing and accelerated exceptions resolution. RIDS offers mid-tier banks a highly scalable, feature-rich platform successfully deployed at U.S. financial institutions processing multi-millions of monthly payment transactions across several sites. VICOR currently has an installed base of 14 sites nationwide with six additional sites in various stages of installation. RIDS installations processed more than 90 million transactions in 2001, representing more than $1 trillion or 10 percent of the U.S. economy. By the end of this year, VICOR anticipates that RIDS will be installed at 20 sites, processing transactions worth more than $1.4 trillion. The growth of RIDS reflects the demand financial institutions are seeing from their lockbox clients to reduce "information float" and streamline costly payment exceptions. Industry-wide, approximately 30 percent of all wholesale lockbox transactions do not post to the A/R or ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. system, costing corporations $20 to $100 per item in exception handling costs alone. Customer posting delays attributed to exceptions also have an adverse impact on average days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). (DSO See CSO. ) and can cost the typical company 2 to 4 percent of its total sales. Since payment exceptions affect nearly every corporate department, providing clients with image based payment information is the linchpin linch·pin or lynch·pin n. 1. A locking pin inserted in the end of a shaft, as in an axle, to prevent a wheel from slipping off. 2. to reducing the negative service and financial impacts of exceptions. "Financial institutions of all sizes are recognizing the importance of helping clients and prospects to reduce cash collection and customer account application time. Leveraging the combined power of color not of the white race; - commonly meaning, esp. in the United States, of negro blood, pure or mixed. See also: Color imaging and the Internet, RIDS is uniquely positioned to help lockbox providers finally get out of the paper business -- improving their operations and quality as well as their clients' bottom line," commented Bob Kirk, VICOR Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "With corporations under increasing pressures to accelerate their A/R processing time and reduce the hefty costs associated with exceptions resolution, color imaging and Internet delivery of intra-day information are becoming standards for banks trying to distinguish themselves in the marketplace." RIDS has included color imaging and secure Internet delivery since its introduction in 1998. Based on extensive industry research, VICOR has tailored RIDS to meet the needs of banks processing medium In industrial engineering, a gaseous, vaporous, fluid or shapeless solid material that plays an active role in manufacturing processes, comparable to that of a tool. Examples monthly wholesale lockbox payment volume, while preserving the ability for full scalability and greater functionality over time. The RIDS base platform includes color check imaging, secure Internet delivery of data and check images intra-day, CD-ROM CD-ROM: see compact disc. CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). and other client output media. Optional modules are available for color document capture, multi-payment instrument processing, A/R collaboration, and powerful workflow and float management tools. These features have enabled RIDS banks to charge a value-based premium for their processing services and position themselves for further new revenue opportunities. "Mid-tier banks in the wholesale lockbox arena are facing many of the same internal and competitive pressures as their larger counterparts. RIDS improves the business case for VICOR's sophisticated receivables platform enabling mid-tier banks to move beyond transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. and, by improving quality and reducing 'information float,' enhance their corporate relationships. RIDS also empowers regional banks to tap the power of networked sites, to integrate multi-site customer activity in a single, streamlined report over the Internet," commented VICOR Vice President Paul McNamara. "With its unprecedented functionality and scalability, RIDS allows mid-tier banks to adopt a single platform for one or multiple sites and invest in meeting and anticipating customer information needs." VICOR, Inc. (www.vicor.com) is a leading provider of image-enabled receivables processing solutions. VICOR's flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , called RIDS (Receivables Information Delivery System), is the first payment processing and cash management platform to offer full color images and intra-day delivery of receivables data via the Internet and other publishing options. Currently installed at 14 sites, RIDS processed over 90 million transactions last year, representing $1 trillion. The company is headquartered in Richmond, CA and is privately held. |
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