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Goldleaf Launches OnX Image Exchange Solution for Correspondent Banks

^{Published on 2008-12-17 14:54:20 - Market Wire}
 

ATLANTA--([ BUSINESS WIRE ])--Goldleaf Financial Solutions Inc. (NASDAQ:GFSI), a provider of integrated technology-based solutions designed to improve the performance of financial institutions, today announced the release of OnX, an end-to-end image exchange solution.

OnX enables correspondent banks to leverage Web-based delivery and receipt of electronic cash letter and adjustment information while automating back office functions with image-based straight-through-processing. Through OnX, correspondent banks can clear and settle checks and image cash letters for their respondents, passing along significant benefits that include clearing checks at a reduced cost and improved availability of funds.

Goldleaf decided to develop and launch OnX after working with Bankers' Bank in Madison, Wisconsin. Based on the success of that project, Goldleaf executives saw an opportunity for correspondent banks to generate additional revenue by changing the dynamics of image exchange into more efficient ways to clear checks and cash letters while creating cost savings for their clients. Iowa-based Cresco Union State Bank (CUSB) clears more than 18,000 checks monthly through Bankers' Bank exchange. As 35 percent of the bank's image cash letter volume is cleared through client-to-client endpoints, CUSB reduced its check clearing fees by 50 percent.

For correspondent banks and service bureaus with high concentrations of customers in specific geographic areas, OnX can be an important differentiator. Often checks written from banks within a short radius of a regional clearing center are the most expensive items to clear through the Federal Reserve. An internal exchange can be a competitive advantage for correspondents to acquire new community banks as clients.

With more clients in the network and a higher aggregated volume of exchange, the per item charges for settlement and clearing can be lowered. According to Bankers' Bank, which clears more than 13 million items monthly, the increased volume enables them to decrease fees – saving thousands of dollars on clearing services for some of their respondents.

"OnX showcases how Goldleaf is using the synergies of product features across our company to develop comprehensive solutions for the financial services industry," said Lynn Boggs, CEO of Goldleaf. "There is significant opportunity for correspondent banks and service bureaus to leverage OnX to gain market share, increase revenue and save their respondents time and money, while bringing greater benefits and efficiencies to the system of check clearing. Goldleaf saw an industry need and subsequent demand for OnX, and as a result, we now deliver a top-notch, cost effective solution that will enhance the way correspondent banks operate, domestically and internationally."

About Goldleaf

Goldleaf Financial Solutions, Inc., offers a strategic suite of integrated technology and payment processing solutions to financial institutions of all sizes. Goldleaf's products and services enable financial institutions to succeed in today's competitive market, solidify their trusted financial relationships, expand their presence and improve profitability through the efficient use of technology. Goldleaf works with clients across six continents. For more information about Goldleaf and its set of solutions, please visit the company at [ www.goldleaf.com ].

Safe Harbor Statement

Certain statements made in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which the Company is unable to predict or control, that may cause the Company's actual results or performance to materially differ from any future results or performance expressed or implied by such forward-looking statements. These statements involve risks and uncertainties, including, without limitation, risks and uncertainties associated with the ability of the Company's suite of products and services to enhance the competitiveness of its clients. These and other risks and uncertainties the company faces are detailed from time to time in the Company's filings with the Securities and Exchange Commission. The Company cautions investors that any forward-looking statements made by the Company are not necessarily indicative of future performance. The Company is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this document by wire services or Internet services.