SAN ANTONIO — Hailed as the most sweeping change in the banking industry in 30 years, the Check Clearing for the 21st Century Act, or Check 21, is less than 90 days away from its October 28 effective date. The legislation, which declares that a check image or substitute check is the legal equivalent of an original check, paves the way for digital imaging of check documents. Although Check 21 promises future efficiencies in check processing time and costs, most financial institutions are willing to admit that gearing up to meet regulatory requirements has put heavy demands on already overtaxed resources.

As they deal with increased costs, operational changes, new technology and legal questions, many financial institutions face the additional task of communicating the effects of Check 21 to their account holders. That is why Clarke American, Inc., a leading provider of checks and related products, contact center services, Internet and direct response marketing solutions for the financial services industry, has stepped in to create a Check 21 communication solution that helps financial institutions fulfill this responsibility easily, effectively and economically.

“Right now, our financial institution partners have so much to do to prepare for the law that it can be overwhelming,” explains Jennifer Ramey, Senior Manager of New Product Development, Sales and Marketing for Clarke American. “So we’re trying to help them take care of their account holders. Without strong communications, account holders could be caught off-guard by some of the changes coming from Check 21, resulting in confusion, or even worse, dissatisfaction. We built a proactive, cost-effective solution that we are confident will help financial institutions communicate changes about how account holders will write checks, how they can anticipate when a check will clear and what documents they can expect to receive from their financial institution. It’s a complete package.”

Created after a thorough examination of Check 21 issues and a comprehensive assessment of its financial institution partners’ needs, the company’s answer to account holder communication is much more than a Check 21 primer. Woven throughout basic information about the law and its effects are opportunities for financial institutions to promote appropriate products and services and strengthen relationships.

“We think this is a prime opportunity to help our partners deepen their account holder relationships,” observes Ramey. “Instead of just looking at Check 21 as a significant cost, we think a financial institution can turn it into a revenue and relationship-building opportunity. And those ready-made communication opportunities don’t come along too often.”

Clarke American’s approach is a three-part, turnkey solution, with ample opportunities for personalization built into each part. The cornerstone piece, says Ramey, is a direct mail letter to account holders that explains Check 21 legislation and how it will affect financial institution operations. “We offer different versions of the letter as templates that can be customized, although we can do anything that our partners want us to do and send out as many versions as they require.” A second page can be added with four coupon spaces available to promote appropriate financial products such as overdraft protection, online banking and bill pay, direct deposit and lines of credit.

The solution’s second part inserts Check 21-related messages throughout account holders’ check pads. Customized messages that remind account holders about Check 21 changes and promote products and services can be targeted to individual account holders, to specific segments or to all account holders. “No other company delivers such a comprehensive communications package to financial institutions,” says Ramey. “When you couple check-pad messages with the direct mail letter, the effect is powerful.”

Finally, the direct mail letter and check-pad messages are supported each time an account holder calls Clarke American’s ServiceLine Plus® number to order or reorder checks or related accessories. Customer service professionals use the order conversation to market a financial institution’s products and programs to account holders who are likely to be receptive. Ramey adds, “Taking check orders by phone creates an optimal environment for promoting special rates and other offers at the end of the call. It’s also a very efficient way to provide vital, industry-related information to account holders in a timely manner. Our extended contact center services enable us to help position products (such as overdraft protection) to customers who may be experiencing the impact of Check 21 such as reduced float.”

“Although they can be used independently, the three parts of Clarke American’s communication solution were designed to be used together for maximum impact,” says Ramey. “Consequently, they are also extremely economical.”

To give its financial institution partners more Check 21 communications resources, Clarke American has gone one step further by creating a special Web site, www.yourCheck21solution.com. “We’ve used the Web site to add value for our partners,” says Ramey. Information on the site describes the company’s communications approach – the three pieces, why financial institutions should communicate Check 21 to account holders and how to prevent account holder dissatisfaction. A downloadable version of Clarke American’s Check 21 white paper and industry information offers partners a comprehensive discussion of Check 21. Online, financial institutions may also request PDF or hard copy samples of Check 21 direct mail letters and can ask to be contacted by a Clarke American associate. Also available are free downloadable consumer fact sheets, Check 21 banners, and icons that financial institutions may post on their own Web sites.

If you need help telling your account holders about Check 21, Clarke American is ready to take the communication burden off your shoulders. Contact your Clarke American representative or visit www.yourCheck21solution.com to learn more about the Check 21 communication solution.

Clarke American provides checks and check-related products, Internet and contact center services, and direct response marketing solutions for the financial services industry. Each year, the company produces more than 10 billion personal and business checks in a variety of formats for more than 4,000 banks, credit unions and other financial institutions nationwide. The company has more than 3,200 associates and a national network of electronically linked production facilities and customer service centers located throughout the United States.

Clarke American is a recipient of the 2001 Malcolm Baldrige National Quality Award in the manufacturing category, awarded by the U.S. Department of Commerce, and is the recipient of the 2001 Texas Award for Performance Excellence given by the Quality Texas Foundation. For more information about Clarke American, visit www.clarkeamerican.com.

For information about this press release contact
Mike Hannan
(210) 697-1299
Cary Corbin
(830) 609-1932