JERSEY CITY, NJ, - June 5, 2002 - Fundtech Ltd. (NASDAQ: FNDT), a leading provider of global electronic payments, settlement and cash management solutions, today announced that it has successfully updated, well in advance of the deadline, its payment systems to incorporate the message format changes mandated by the Federal Reserve Bank. Banks must make the upgrade to their payments systems by July 15th .
For its customers, Fundtech has also provided a "Fed Change Customer Care Package." Over 100 banks currently using Fundtech's payments solutions - representing one-third of the approximately 300 banks connected to the Federal Reserve Bank through a flash interface - are implementing the package to make the updates. It provides a flexible and easy installation process and detailed testing plans which allow clients to complete the upgrade themselves, while also still enjoying Fundtech's service and support. Alternatively, customers can purchase more extensive support through Fundtech's Professional Services Group.
Fundtech is also reaching out to all other banks with its FUNDTECH FED CHANGE HOTLINE (1-201-741-1296). Fundtech payments experts are available to answer any questions banks may have about the mandated changes and how best to comply. In particular, banks may want insight into how the new format changes allow for larger settlements in a single transaction.
"We wanted to make the new Fedwire Funds Transfer Message format changes available to customers early on so they can upgrade quickly and take advantage of a system that will help them achieve all the benefits of automation and integration as they pursue straight through processing. We are pleased to be ahead of the industry in preparing ourselves not only for our own customers, but for any bank that needs assistance through the FUNDTECH FED CHANGE HOTLINE," stated Reuven Ben Menachem, Chairman and CEO, Fundtech. Fundtech began incorporating the new changes into its payment system and accompanying modules in early 2002 and then tested the system and its modules with the Federal Reserve Bank.
The new message format changes will be made to the Fedwire* Funds Transfer
System, a large-dollar electronic payment system owned and operated by the
Federal Reserve Banks, which act as intermediaries in all Fedwire funds
transfers. The changes made to the Fedwire Funds Transfer Service affect all customers with electronic flash connections to the Fed. These new format changes will enhance automation. Also, with enhanced data elements designed to capture information essential to international commerce, banks can now more readily automate payment processing.
Leveraging its technology expertise, Fundtech payment systems are being updated with optional parameters that can be set to interface with a customer's other internal systems. This enables Fundtech's system to send or receive data from standard external systems either in the old or new format to bring more flexibility to the customer.