The "New" Lockbox: Thinner. Faster. Better.

The "New" Lockbox: Thinner. Faster. Better. Blaine Carnprobst Managing Director, Receivables BNY Mellon Sam Golbach Senior Vice President WAUSAU Financial Systems Ed McLaughlin RemoteDepositCapture.com September 2012

BNY Mellon Investment Management 1 $1.3 trillion total assets under management 2 Investment Services 1 $26.6 trillion assets under custody and administration Asset Management Wealth Management Securities Servicing Treasury Services Multi-boutique investment manager $1.2 trillion assets under management 1 8 th largest US asset manager 3 11 th largest global asset manager 4 Wealth management for individuals and families $176 billion in private client assets 1 Top 3 ranked private bank in US 5 Top 10 US wealth manager 6 Full range of financial operations offerings $26.6 trillion assets under custody and administration 1 $11.9 trillion outstanding debt serviced 1 $1.8 trillion tri-party balances daily 1 Cash management and global payments services $1.4 trillion average payments processed daily 1 170,000 transactions conducted daily 1 100+ currencies in which we transact 1- As of March 31, 2012. 2- Aggregate assets under management of $1.3 trillion. 3- Institutional Investor, 2011. 4- Pensions & Investments, 2011. 5 - Barron s Penta, December 3, 2011. 6 Barron s, September 19, 2011. Copyright 2012, RemoteDepositCapture.com 2 2

BNY Mellon s Global Presence BNY Mellon operates in 36 countries and over 100 markets Americas 31,000+ BNY Mellon employees Asia-Pacific 8,000+ BNY Mellon employees BNY Mellon Locations EMEA 9,000+ BNY Mellon employees Global Service, Local Delivery Services delivered around the world Seamless global network for cross-border speed and convenience Our experts are located in-market for close collaboration with clients Copyright 2012, RemoteDepositCapture.com 3 3

BNY Mellon U.S. Infrastructure Chicago, IL Lockbox Pittsburgh, PA Lockbox, Disbursements, Electronic Services, Data Center. New York Trade & Payment Operations, Loan Operations. Disbursements Boston, MA Disbursements Woodland Park, NJ ClearTran B2C solutions Los Angeles Lockbox College Station, TX SourceNet Solutions Dallas, TX Lockbox Tennessee Data Center Florida Payments Transfer Philadelphia, PA Disbursements Copyright 2012, RemoteDepositCapture.com 4

About WAUSAU Key Facts Founded in 1974 Locations: Mosinee, WI (HQ); Lynn, MA; Omaha, NE Privately Held by Frontenac Market Leadership #1 in receivables* 3.5 billion+ payments processed annually 650+ customer sites 50+ Fortune 500 companies 8 of top 10 FIs *Source: TAWPI/Blueflame 2009, TowerGroup 2012 Copyright 2012, RemoteDepositCapture.com 5

Processing Challenges Consumer/Business demand for faster Funds Availability Reduced Processing Costs Overnight Mail / Address Branch Stranded Payments Courier Costs Delayed Deposits / Multiple Bank Accounts Risk Mitigation Process Centralized Review and Processing Requirements Business Rules Edits Data Entry Limited Deposit options USPS Rationalization Physical deposit Combining Lockbox Processing with a Remote Deposit solution creates a single point process for reviewing and accepting transactions. Copyright 2012, RemoteDepositCapture.com 7

Logical Evolution for RDC In the beginning capture deposits Gradual migration key data entry fields Corporate requests for integration increase Complete automated receivables solutions Deposits B2B payments C2B payments Corporate billers Lockbox providers Copyright 2012, RemoteDepositCapture.com 8

Remote Lockbox Deposit Overview Enables Remote Locations to scan checks and corresponding remittance documents and transmit directly into a corresponding lockbox Remote Lockbox service is designed to address customer issues such as: Stranded payments Overnight courier fees Mail float Desk drawer float Integrating payments into a single Receivables workflow Leverages Remote Check Deposit technology Web-based software application Copyright 2012, RemoteDepositCapture.com 9

Remote Office Payment Processing Workflow Mail or Courier Traditional, Centralized Payment Processing Remote Offices Mail Extraction Extract, Prep, Sort, Batch Image Scan Check, Remittance, Invoice, Correspondence Data Capture Recognition, Lookup Tables, Data Entry, Balancing, etc. E-Clearing Eligibility Image Exchange And ACH Eligibility Clearing Module Selection Image Exchange ACH Remote Payment Workflow Remote Offices Remote Capture Electronic Import Workflow Enhancements No need to transport payments to centralized facility Easy image capture at point of transaction Quicker posting and clearing of funds Copyright 2012, RemoteDepositCapture.com 10

Remote Lockbox Workflow Client Office Client Office Client Office Client Office Payment Receipt Payment Prep Payment Scanning Payment Scanning (cont.) Drop Box payments Walk-in payments Overnight payments Miscellaneous payments Prepare payments (Check only, or check and remittance) Batch payments Log onto Remote Check Deposit Select type of payment to process Enter batch total Scan checks/ remittance transaction Ensure check image is legible Keying of $ Amount from check image for CAR /LAR misreads Final $ amount reconciliation Release batch Securely transmit batch to BNY Mellon. Lockbox Lockbox Lockbox Lockbox Image Delivery Data Entry Check/Image clearing Lockbox Processing Lockbox image archive Image transmission CD-ROM Optional: enter data from scanned check or remittances Check images electronically transmitted to check processing for clearing Batches imported into lockbox system MICR correction Virtual endorsement applied Data Transmission Check Deposits and Float Assignment Copyright 2012, RemoteDepositCapture.com 11

Remote Lockbox Key Features Essential Features Capture full page invoices, coupons, envelopes, checks Software OCR to read coupon OCR scanline Validate fields by parsing scanlines, using eips, check digits Balance documents to checks Additional data entry fields Ability to customize A/R files Ability to integrate with central lockbox Copyright 2012, RemoteDepositCapture.com 13

Remote Lockbox Remittance Functionality Can be used in conjunction with existing lockbox(es) Captures document scan lines Check & associated payment document scanning Data capture for A/R transmission: Data captured at the field capture point Data captured through the Lockbox workflow Leverages single scanning device to scan checks and up to 8 ½ X 11 documents Capture front and back of documents All scanned transactions are combined with existing paper lockbox items and workflow Data captured is included in daily accounts receivable file Transaction images can be included in an image transmission, available on-line and/or on a monthly CD-ROM Copyright 2012, RemoteDepositCapture.com 14

Integrated Remote Lockbox Deposit Benefits Utilizes existing lockbox processing for deposit, data transmission and image archive Reduces branch deposits, overnight courier fees and time spent preparing deposit packages Reduces risk associated with uncashed checks in client office Optimizes funds availability Provides more control over deposit timing Typically decreases float by a minimum of one day over courier packages Improves straight-through processing by eliminating manual posting Copyright 2012, RemoteDepositCapture.com 15

Benefits for Payments Offerings Financial institution/lockbox provider Expand solution marketability Increase lockbox volume and revenue Increase deposits Improves ability to retain customers Reduction in paper handling, improve errors Corporates Single service delivery point for payments A/R, hub, reporting Improves efficiency by combining workflow steps Decrease cost for mailing stranded payments Decrease the number of banking relationships Improve posting and float time Copyright 2012, RemoteDepositCapture.com 16