Sterling National Bank Joins SVPCO Image Payments Network

“Sterling National Bank recognizes the strategic value of implementing a highly effective image exchange program to improve the economics and efficiencies of check processing by migrating paper checks to digital images,” said Eliot Robinson, Executive Vice President of Sterling National Bank. “The SVPCO Image Payments Network is a terrific solution because it enables Sterling Bank to be part of a network where the Federal Reserve and institutions such as Bank of America are exchanging a significant amount of check image volume.”

Sterling National Bank is connecting to Image Payments Network through the SVPCO Gateway DTA, which allows institutions to send and receive bulk files of images through the Image Payments Network. Sterling National Bank is the first user of the File Transfer Protocol (FTP) option, a lower-cost, Internet-based connection that makes it easier for institutions with smaller volumes to connect to the network.

John Feldman, Image and Electronic Processing Executive of Bank of America, said: “Bank of America is pleased to begin clearing check images with Sterling National Bank through the Image Payments Network. Bank of America’s exchanges with Sterling National Bank will enable both institutions to remove paper from our check processes, enabling improved operating efficiency. Bank of America looks forward to working with other institutions across the country to increase the volume of check images through the Image Payments Network.”

The Image Payments Network is the nation’s private-sector volume leader in image exchange by dollar value and total number of items. In September 2006, the average number of daily items in the Image Payments Network grew 22.6% to an all-time high of 4.0 million.

“Sterling National Bank’s participation in the SVPCO Image Payments Network through the Gateway DTA demonstrates its commitment to innovation and implementing best practices,” said Susan Long, Senior Vice President of The Clearing House, responsible for SVPCO-Electronic Clearing Services. “As a regional bank, Sterling National Bank stands to realize significant efficiencies with Bank of America, other banks and the Fed by exchanging images through the Image Payments Network. As more regional institutions join the network, the benefits to all participants increase accordingly.”

SVPCO Gateway DTA is one of three ways to connect with the nation’s leading image exchange network. SVPCO’s Distributed Traffic Agent (DTA), a solution developed by SVPCO with VECTORsgi, enables institutions with larger volumes to transmit check images directly to each other. The SVPCO Image Payments Network can also be accessed through an institution’s correspondent banking relationship or through a third-party processor.

In addition to Sterling National Bank, participating institutions in the Image Payments Network include Bank of America, BB&T, Comerica Bank, Fifth Third Bank, HSBC Bank, Huntington National Bank, JPMorgan Chase Bank, KeyBank, LaSalle Bank, M&T Bank, National City Bank, PNC Bank, Union Bank of California, Wachovia Bank, and Wells Fargo Bank. Through its relationship with the Federal Reserve, the Image Payments Network can reach more than 10,000 endpoints and help financial institutions of all sizes take advantage of image exchange.

How the Image Payments Network Works

The Image Payments Network is a single, end-to-end system that provides unparalleled control, security and processing efficiency for transmitting check images directly between participants and settling the participants’ net positions. The network enables financial institutions to exchange and settle check images peer-to-peer without a cumbersome central processing system, thus eliminating the expense of transporting physical checks.

The Image Payments Network offers financial institutions a variety of connectivity options. The SVPCO Distributed Traffic Agent (DTA), a solution developed by SVPCO with technology partner VECTORsgi, enables financial institutions with larger volumes to transmit check images directly to each other. The SVPCO Gateway DTA is a cost-effective solution designed for institutions that process less than 100,000 images per day or are interested in gradually ramping up their image processing capabilities. The Image Payments Network can also be accessed through an institution’s correspondent banking relationship or through a third-party processor.

All financial institutions that exchange images directly with each other via the Image Payments Network utilize the automated settlement function. Automated settlement provides online net and bilateral settlement position reporting and eliminates the manual intervention required with other settlement arrangements. Financial institutions can see their net debit or credit position online and view their position with all of the financial institutions participating in the Image Payments Network at any time.