Ennis, Inc. · NYSE:EBF
Ennis — Investor Presentation (March 2006)
10 slides from Ennis's investor presentation, March 2006
Slide 1: Check 21
Slide 2: Check 21 History
Check 21 History • Check 21 was necessitated by the September 11, 2001 terrorist attacks. Due to the attacks, airline traffic was grounded for days, halting the delivery of paper checks between banks for processing. • After passing in the House and Senate, the “Check Clearing for the 21st Century Ac
Slide 3: What is Check 21?
What is Check 21? • Check 21 encourages check truncation (the replacement of a paper check with a digital image) earlier in the processing cycle by removing the need to transport the check between banks. • The bank of first deposit can now transfer a digital image of the check to the check processor
Slide 4: The Substitute Check (IRD)
The Substitute Check (IRD) • The substitute check carries the same legal weight of the original paper document. • Checks eligible to become substitute checks are: - Consumer Checks - Corporate Checks - Government Warrants - U.S. Treasury Checks - Money Orders - Controlled Disbursements - Travelers C
Slide 5: Benefits of Check 21
Benefits of Check 21 • Allows financial institutions to process checks faster, reducing account holder float. • Reduces the dependence on the transportation networks needed to move checks as well as the associated costs and potential for disruptions. • Will save financial institutions an estimated $
Slide 6: Check Redesign
Check Redesign • A recent study of major financial institutions revealed that only 30% of today’s business checks were image-ready: - Amount areas varied widely - “Drop Out” boxes were rarely used - Backgrounds were typically too dark (pantographs, step- and-repeats, voids, etc.) • The implementatio
Slide 7: ANSI X9.7
ANSI X9.7 • Addresses all aspects of image readiness • Introduces new standards for vital areas on negotiable documents: - Date - Pay To - Amount - Legal Amount - Signature Area
Slide 8: Security In Redesign
Security In Redesign • Business checks should be redesigned to include security features: - Visible and invisible fibers - Chemically reactive papers - Toner grip papers - Thermochromic (heat sensitive) inks - Bleed-through MICR - Other security enhancing features
Slide 9: Long Term Benefits
Long Term Benefits • Faster check clearing • More sophisticated fraud detection capability • Allows branch and ATM deposits to be transmitted electronically to reduce transportation • Reduces costs involved with check processing
Slide 10: Additional Check 21 Resources
Additional Check 21 Resources • American Bankers Association (ABA) www.aba.com • Electronic Check Clearing House Organization (ECCHO) www.eccho.org • The Federal Deposit Insurance Corporation (FDIC) www.fdic.com • The Federal Reserve Board www.federalreserve.com • Accredited Standards Committee X9 (