cocc to reach 95% image milestone by year end

Avon, CT, July 15, 2008 – COCC, the region’s leading provider of next generation technology services for financial institutions, today announced that 95% of the 12.5 million outgoing, inclearing and over-the-counter checks processed each month on behalf of its clients will be images by year end 2008. The company has led the financial industry’s change over from paper to image exchange since Check 21 legislation took effect in October, 2004.

“From our initial installation of the advanced technology required for an end-to-end image solution, COCC set its sights on image-only check processing for all of its client institutions,” said Joseph D. Lockwood, Chief Technology Officer at COCC. “Today’s announcement not only demonstrates that our goal is in sight – it also enables COCC to set its sights on achieving still greater payments processing efficiencies.”

COCC’s expertise with image has led to impressive growth as well, with 114 clients currently utilizing the company’s check image processing services and overall volume running 42% above 2007 levels. In addition to processing 12.5 million checks per month, COCC also renders 1.6 million statements, nearly 10% of which will be e-Statements by year end 2008.

The company’s success with image exchange came early when COCC realized that more components were required for true end-to-end image processing than most vendors or financial institutions realized. Lockwood sees this as a consequence of vendors focusing exclusively on selling their merchandise as opposed to assembling a complete solution for community banks and credit unions.

“We saw financial institutions scrambling to assemble the pieces of the image exchange puzzle with no one to help them,” said Lockwood. “That provided a real opportunity for a service-oriented technology provider like COCC.”

The company installed a complete image exchange and storage platform, then developed a complete operational flow for end-to-end image processing accompanied by a full comparison of current and image check processing costs. The cost comparison enabled client institutions to calculate the economic advantages of image exchange with full consideration of installation, licensing and per item operating expenses such as image reject repair, adjustments, image quality assurance, reconciliation and settlement.

“Our goal was to show our clients exactly how the image exchange process would impact their workflow and contribute to their bottom line,” said Betsy Didan, COCC’s Assistant Vice President - Document Processing. “When they saw the cost savings, we had the system in place to bring them on.”

COCC installed its first image exchange client in April, 2005 and never looked back. One year later, COCC announced that 19% of its check processing clients were sending outgoing image cash letters to the Federal Reserve, and commitments to image exchange would raise that percentage to 31% by year end. In 2007, the company made a commitment to move all of its clients to image inclearing as rapidly as possible.

“With the Federal Reserve closing check processing centers and increasing the cost of processing paper checks, we knew our clients needed to shed the paper as quickly as possible,” said Didan. “We have been rewarded by that decision ever since.”

COCC includes among its major clients Peoples United Bank in Bridgeport, Conn. and Liberty Bank in Middletown, CT.

Liberty Bank said they were attracted to the company’s ‘can do’ attitude and track record for achieving ambitious goals for check image exchange. “On a consistent basis, we were realizing greater than projected cost savings and seeing dramatic increases in our funds availability,” said Barry Abramowitz, Chief Information Officer at Liberty Bank.

Joan B. Klinakis, Senior Vice President, Operations at $1.1 billion United Bank of West Springfield, Mass, added, “Branch image capture places us in a much better position with respect to regulatory compliance and protection of non-public customer information. We had estimated a 20% savings in Fed charges alone. That will rise to 25% when the Windsor Locks Processing Center closes on September 19 and the bank utilizes additional image clearing options.”

Additional clearing partners, such as Eastern Bank of Boston, Mass., have stepped forward to help COCC assemble the next phase of payments options. The company is also deploying a direct branch solution that dramatically reduces adjustments and other Day 2 processes.

“COCC has done a remarkable job of transitioning its clients to the check image world,” said Michael Stewart, Assistant Vice President, Federal Reserve Bank of Boston. “We are pleased to have their support in our move to eliminate paper check processing nationwide.”