Transcript Banking Services

Banking Services – Treasury
Management
GFOA Conference
October 6, 2011
Getting The Job Done For Our
Clients
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Talking Points
 Assessing your Transactional Environment
 Treasury Management Products/Services
 Fraud Protection
 Creating Efficiencies
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Assessing Your Transactional Environment
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5 Major Areas of Concern
1. Receivables
2. Payables
3. Timeliness of Information
4. Reconciliation
5. Fraud
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Receivables Fact Finding
Key Questions to Consider
 What process do you use to collect funds or receipts?
 What is the average amount?
 How many checks do you receive on a monthly basis?
 How often do you go to the bank?
 How do you update your receivables?
 What does it cost you to process your collections?
 What challenges are you experiencing with your collections process?
 What are the current options to submit payments?
 Describe the payments you typically receive (check, ACH, etc.)?
 If you could, what would you change or improve about your collections process?
 Do you hold onto check deposits?
 Do you photocopy your checks before making deposits?
 How often do you need coin?
 How do you manage the delivery of cash to the bank?
 Have you experienced any internal or external fraud relating to your cash processing?
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Payables Fact Finding
Key Questions to Consider
 How many checks do you currently write per month?
 What challenges are you experiencing with your disbursements?
 What process and controls do you use to make disbursements?
 What is the average payment amount?
 How much time are you spending dealing with reconciling your accounts?
 Does your company have any “Green” initiatives?
 If applicable, have you experienced fraud in relation to the way you process your check or
ACH payments?
 How do you determine your daily cash position? How long does it take?
 What challenges are you experiencing with funding your daily disbursements?
 What systems have you used in the past to monitor checks clearing or checks being
returned on your accounts?
 What process do you use to make international disbursements? What’s the associated
cost?
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Information Reporting Fact Finding
Key Questions to Consider
 How have you monitored account balances and activity in the past?
 How do you get the information when you need to know your exact cash position?
 How do you prefer to receive the information about your accounts?
 What challenges are you encountering with your day-to-day bank accounts?
 Have you experienced any internal or external fraud due to online banking access, or not
enough account information?
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Treasury Management Solutions
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Receivables Solutions
 Automated Clearing House (ACH) Services – expedite collection of receivables by originating direct
electronic debit and credit transactions through a secure national network.
 Remote Deposit – Client scans checks and securely transmits the check images to Capital One Bank
right from their place of business – as late as 9:00 pm ET for same day credit.
 Vault Services – provide a secure, consistent method to pool cash from multiple collection points to a
Capital One Bank vault, or from the bank to a business location.
 Lockbox – accelerates the collection of remittance payments by sending them to a unique post office
box managed by Capital One Bank.
 SafeBank – allows clients to insert currency deposits into a Loomis-supported “smart” safe/bill counter –
with same-day credit.
 Merchant Services – through our extensive partnership with Govolution we can offer a customer portal
for customers to log directly into an extension of our clients website for billing detail and payment options
– in addition to the point of service merchant terminals.
 Remote Payment Service – automates electronic payments made through consumer banking portals
with a replacement to the check into an electronic ACH transaction that settles within 1-2 business days
as oppose to the 5-7 business days for traditional check processing.
 Cash Concentration - Consolidate funds from multiple bank accounts held at financial institutions
across the country into one, central Capital One Bank deposit account. Gain more control over cash
flows and processes with automated funds transfer solutions. Maximize the use of idle balances and use
extra cash to invest or pay down loans.
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Payables Solutions
 Commercial Card – simplifies procurement, expense and fleet management.
 ACH – enables the origination of electronic payments, such as Direct Deposit, Vendor Payments and
Online Tax Payments through a secure national network.
 Wire Transfer – initiate online via Treasury Optimizer, funds can be sent in US dollars or in one of 28
foreign currencies.
 Controlled Disbursement – provides early check and ACH clearing totals; funds are automatically
transferred from the designated funding account to the Controlled Disbursement account to fund all
checks cleared for the day.
 Positive Pay – helps protect against potential check fraud by matching check issue information against
checks presented for payment.
 Account Reconciliation – provides a reconciliation of checks paid to checks issued to determine
outstanding checks.
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Fraud Protection
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With fraud continuing to rise in the financial industry, most banks are
implementing a new policy to minimize client & Bank’s fraud risks
ACH Online
• Required to implement
Dual Control on ACH
Transaction
OR
• Sign Waiver form
Check Disbursement
• Required to enroll in
Positive Pay Service
OR
• Sign Indemnification form
Wires
• Required to implement
Dual Control on Wire
transactions
OR
• Sign Waiver form to
protect Bank against
Fraud
Note: Strategy was presented through TM-IDM on May 19th and was approved by Sr. Leaders from Ops, IT and TM
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Positive Pay
 Check fraud continues to grow annually
• $10 B + in annual losses as a result of check fraud
 Added protection to your checking account through the comparison of each
presented check to the bank against your electronic check issued file
 Bank will notify you of any mismatched items on a daily basis
• We ask that a decision is made between the hours of 10:00 AM – 3:30 PM ET
• Items can be viewed online through Treasury Optimizer or automatically applied
against your default decision (Pay/Return)
Positive Pay Benefits
 Reduction in exposure for check fraud
 Added Control of being able to view rejected transactions presented against your
account and having the ability to return or pay the items
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Positive Pay/Account Reconciliation Flow
Checks Paid
ARP/Positive Pay
Checks Issued
File
Checks Paid
PPAY
EXCEPTIONS
Default Decision
Applied
Payment
Decision
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What is Electronic Debit Protection?
 How to Manage Risk on the ACH side
 Definition – theft via ACH
• 2 options – selective vs. block all
• Dollar Thresholds for select ACH debit filters
• Set- up a one-time authorization for trading partner payment
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Creating Efficiencies
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Process Efficiencies
Challenges
Enhancement
Benefit
Account Structure
Treasury Key

Improve reconciliation

Maximize use of available funds

Minimize research of deposits and return items

Centralize Collections

Increased Availability by 2 days

Reduction in potential check fraud

Automate cash application process and improve accuracy

Improve cash positioning with added benefit to invest excess cash.

Reduction in back office work
Cash/Check Collection Process
Lockbox

Access client information more readily from any area within the
company
Cash/Check Collection Process
ACH

Automate and Control payment process – same day every month

Reduced opportunity of check fraud

Improve efficiency and accuracy of accounts receivables record
keeping

Improve Return Item notification sooner and begin collection sooner

Improve cash forecasting by controlling timing of payments with
known settlement date

Reduce expenses – ACH transactions reduce the costs associated
with paper-based payments (i.e check storage, paper processing, bank
clearing fees.)
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Process Efficiencies
Challenges
Enhancement
Benefit
Cash/Check Collection
Process
Remote Deposit Service

Increased availability

Increased fraud controls

Extended processing and depositing deadlines

Reduction in branch visits – make deposits at local office

Web processing shortens the reconciliation process and timeline

Enhanced reporting options – ability to export, print and save reports in
multiple formats
Manual Reconciliation
Process
Payables
BAI File

Automate Reconciliation
 BAI File Acceptance
Commercial Card

Perform Daily vs. Weekly Reconciliation

Eliminate manual and paper intensive account reconciliation

Streamline purchasing transactions – T&E, Supplies, Conferences, etc

Reducing paperwork, with potential to eliminate or reduce purchase
orders, paper invoices, and checks

Strategic Sourcing: management reports to analyze category and
merchant spend to negotiate vendor discounts and rebates

Data integration with accounting software
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Normal credit qualifications and other terms and conditions may apply. Ask us for details.
This document provides information about and access to financial services offered by the Capital One family of companies,
including Capital One, N.A., Member FDIC. ©2010 Capital One. All rights reserved.
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