What's Old is New Again: Finetre Draws on Fax Technology to Create ''Virtual'' Electronic Signature Process For Annuities.

HERNDON, Va. -- New Feature to Fill Compliance Gap, Streamline 1035 Exchanges, as Annuity Industry Builds Consensus around eSignature Solutions

Finetre Corporation today announced that later this year it will release a new integrated fax-signature capability known as Finetre's Virtual eSignature Solution. The solution is being created in response to demand from Finetre customers, and designed with their input. It provides a method to incorporate paper and "wet signatures" into electronic transaction processing, thereby supporting new signature requirements without compromising the benefits of electronic straight through processing.

Virtual eSignature Solution is an adjunct to Finetre's AnnuityNet Platform, which provides brokerage firms with online transaction processing and compliance oversight capabilities for annuities and other insurance and investment vehicles.

The basis of the Virtual eSignature Solution is the scanned image of a customer's signature on consent and other forms required for annuity transactions. The images are electronically transmitted with a bar-coded coversheet to a fax server, where they are indexed and delivered electronically with the original electronic annuity transaction.

The new solution was developed in partnership with a Finetre working group of key operations professionals from a wide range of insurance companies and distributors dedicated specifically to study the solution. The working group also recommended that Finetre utilize the technology to streamline the transmission of paperwork and signatures required to process 1035 exchange transactions. That capability, to be included in the new product, will significantly increase efficiency across the annuity industry by converting forms and signatures to electronic images which can be instantly transmitted and received. Investors will directly benefit, as their transactions are completed more quickly and seamlessly.

The solution is designed to act as a stop-gap until true eSignature technology gains acceptance within the industry. The use of ubiquitous and comparatively mundane fax technology plays an integral part in Virtual eSignature's near-term viability, and in shoring up recent growth in straight through processing transaction volumes. "It's a funny predicament that we keep in balance," said Kristina Vaughn, senior vice president of Product Development at Finetre. "Although true e-signature technology already exists, and we are ready to integrate it into our annuity workflow, we want to work with the industry on this because we think the team-player approach is best for everyone."

Conveying annuity customer consent - in the form of the customer's signature - within an electronic environment has become a challenge addressed by the industry at two levels: strategically and in day-to-day tactical operations. The Virtual eSignature Solution represents Finetre's ability to produce viable, practical interim solutions that support clients' daily tactical operations while the larger industry discussion continues.

"We actively participate in and encourage the industry e-signature forums sponsored by NAVA and other organizations," said Vaughn. "Finetre firmly believes that a collective industry forum is the best means to establish e-signature standards that are universally acceptable to everyone, and we are always ready to bring our expertise to the strategic discussion."

"But, while strategic initiatives are being formulated, our clients have tactical issues today that require quick, short-term solutions," said Vaughn. "Because so many major financial services firms rely on us for real-time annuity workflow and compliance management, it's critical that we respond quickly to changing compliance requirements. Even if Virtual eSignature seems temporary now, it may likely continue to be a viable alternative in the future. Electronic signature regulations require that consumers be provided the opportunity to opt out of electronic signatures, so our solution can serve as a feasible option. And we are proud of our track record of rapid delivery and reasonable cost."

Even though the Virtual eSignature Solution was well-received by the Finetre client work group, Vaughn admits that the perceived need is not universal. "Obviously, it's in everyone's best interest if the industry arrives at a purely electronic solution - one that doesn't even require faxes. And to that end, we're also developing and planning for additional eSignature options, such as Voice Print, Click-Wrap, and PKI. We're looking forward to the industry working groups putting forth their consensus position so that efforts are well coordinated."

About Finetre Corporation

Founded in 1997, Finetre Corporation is a Northern Virginia-based software technology firm focusing on transaction processing and compliance automation in the financial services industry. Finetre's AnnuityNet Platform currently processes approximately 15,000 annuity transactions with a total value of nearly $1.5 billion for more than 20 brokerage firms each month over the Internet. Finetre is privately held by investors including: GE Financial Assurance/GE Equity, Lincoln Financial Group, Conning Capital Partners, The Phoenix Companies, Wachovia Insurance Agency, Inc., Ohio National Financial Services, FBR Financial Services Partners, and SunLife Financial.