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Bank of America Merrill Lynch Speeds U.S. Wholesale Lockbox Processing

Clients Can Receive Funds an Estimated 25 Percent Faster

Monday, October 24, 2016 9:11 am EDT

Dateline:

New York
"While today’s headlines commonly feature news about developments in electronic payments, a sizeable population of businesses of all sizes in the U.S. still prefer to make paper-based payments"

Bank of America Merrill Lynch’s recent technology investmentin end-to-end lockbox operations has improved its speed of processing from the time of receipt to the time of deposit by 25 percent, and the rate of straight-through automation to more than 70 percent. These metrics are important indicators of BofA Merrill’s commitment to help companies by processing paper payments as efficiently and accurately as possible, and ultimately help them optimize their working capital.

"While today’s headlines commonly feature news about developments in electronic payments, a sizeable population of businesses of all sizes in the U.S. still prefer to make paper-based payments,” said Rodney Gardner, head of Global Receivables for Global Transaction Services at BofA Merrill. “We are proud of our performance and how our investment in technology has enabled us to expedite the processing of payments for our clients – regardless of whether they arrive as paper or in digital format."

BofA Merrill consistently ranks among the fastest wholesale lockbox providers for mail receipt times as represented by the semi-annual Phoenix-Hecht Postal Surveys. In the most recent survey, BofA Merrill retained impressive national and regional mail survey results for all of its wholesale lockbox sites, including best postal handoff measurements in all cities. All processing occurs in-house in cities consistently ranked among the fastest-performing mail receipt cities for the U.S. Postal Service.

In addition, over the past year, the firm improved the timeliness and efficiency of the processing and depositing of checks by 25 percent, which ultimately can benefit clients in various ways, including reducing their days’ sales outstanding. This effort centered on BofA Merrill’s patented image-capture technology that eliminated the need for time-consuming mail sorting. All work is then opened, validated and deposited upon receipt, with limited manual intervention.

“As a result of digitizing our lockbox process, our clients are receiving straight-through processing rates surpassing 70 percent,” said Gordon Miller, Operations executive, Global Technology and Operations. “Furthermore, the reduction in tasks requiring human touch has led to an improved risk environment.”

BofA Merrill’s improved mail performance in Wholesale Lockbox follows recognition received earlier this year by Global Finance magazine in which the lockbox image capture technology was included in the “2016 Innovations” listing for process change in transaction services.

BofA Merrill has more than 70 years of experience providing in-house lockbox services, and today operates lockboxes in major cities across the U.S. and Canada. The bank also provides lockbox and other check collection services in multiple international locations.


Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 47 million consumer and small business relationships with approximately 4,600 retail financial centers, approximately 16,000 ATMs, and award-winning online banking with approximately 34 million active accounts and more than 21 million mobile active users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

Bank of America Merrill Lynch is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., all of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates:  Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed.

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Reporters May Contact:
Will Wilson, Bank of America Merrill Lynch, 1.980.388.3360
will.wilson@bankofamerica.com