New CheckFree Online Account Opening, Funding, Transfer Solutions

"With the addition of these compelling self-service online banking solutions alongside our industry-leading electronic billing and payment portfolio, CheckFree is creating unparalleled opportunities for financial institutions to deliver enhanced virtual branch experiences and drive the acquisition and retention of more profitable customers through their branded websites," said Jeff Weikert, senior vice president and consumer service provider (CSP) business unit executive, CheckFree Electronic Commerce division. "It's all part of CheckFree's broader strategy to make complex financial activities easier for businesses and consumers."

These online banking solutions are powered by CashEdge, a leading provider of innovative online financial applications for banks, credit union and wealth management firms. "With its unparalleled distribution network, CheckFree is a powerful force in the electronic billing and payment industry," said CashEdge CEO Sanjeev Dheer. "The combination of CheckFree's industry-leading platform for secure and convenient electronic billing and payment, and CashEdge's innovative payment and account opening products will offer new levels of convenience to financial institution customers."

For financial institutions and their customers, the potential benefits of these solutions are clear. Real-time account opening helps financial institutions compete more effectively for new accounts by dramatically compressing the time, cost and complexity of opening and funding new accounts. With automated solutions, new accounts can be opened online in a matter of minutes in most cases, compared to an industry-standard average of three to five days, according to a September 22, 2005, Aite Group report titled "Online Account Opening Technology: The Last Mile in STP." Aite Group is an independent research and advisory firm serving the financial services industry.

"A natural convergence is taking place between broader online financial services applications such as online account opening and funding and electronic billing and payment solutions, resulting in a suite of comprehensive offerings aligned with banks' acquisition, retention and profitability goals," said Eva Weber, an analyst at Aite Group. "Online account opening and funding applications help reduce the cost per acquisition of new customers, while real-time transfer and electronic billing and payment capabilities help increase retention and build profitability for the bank."

Opening accounts online costs financial institutions only a fraction of the average $65 for offline processing of each new account, according to Aite Group. It helps speed up the flow of funds into new accounts - from five to seven days through traditional processes to just one to three days via online account funding. It is also expected to increase account completion rates - new accounts that are ultimately funded - to a projected 70 percent of submitted applications from the current 10 percent.

Available as stand-alone services from CheckFree, Online Open, Online Fund, and Online Transfer are designed to help financial institutions increase new account completion rates and fully leverage their online channels for customer acquisition and retention.