Carreker Corporation Press Release - March 24, 1997

New Sweep Approach Provides Expanded Profit Opportunities For Banks

(ORLANDO, FL March 24, 1997) Having successfully reduced Reserve Requirements by "sweeping" NOW account balances into money market accounts, leading-edge banks are now looking for new opportunities to further reduce costs.

"The next wave of Reserve Requirement reductions will extend the sweep process from NOW accounts to other retail DDA accounts and far more volatile corporate accounts," said Wyn Lewis, managing director, Carreker-Antinori, Inc., a Dallas-based bank technology and consulting firm.

Complementing the sweep process, cash forecasting techniques are allowing banks to transform non-earning cash generated from the sweep process into investable assets.

"The sweep process, combined with cash forecasting and reduction, comprise a ‘holistic’ approach to liquidity management aimed at generating profit for banks. Integrating these seemingly disjointed approaches produces a sum that is greater than its parts," he said.

This approach is detailed in a white paper entitled Liquidity Management -- An Earnings Opportunity for Bankers that was released by Carreker-Antinori during this week’s Bank Administration Institute Transaction Processing ’97 SuperConference.

To illustrate the magnitude of profit that such a "holistic" approach can bring to banks, Carreker-Antinori analyzed the impact of optimizing both the Reserve Requirement and physical cash in over 400 banks. The results showed that banks can achieve additional aggregate reductions of more than $3 billion in Federal Reserve balances and $9 billion in physical cash, thus increasing aggregate annual pre-tax profits by $600 million.

The purpose of the white paper is to educate senior bank executives on the newest innovations in liquidity management and the potential value they can bring to financial institutions. In addition, the white paper provides information on the sweep, cash forecasting and liquidity management technology developed by Carreker-Antinori and Knowledge Based Systems, Inc., College Station, Texas.

Lewis is a noted expert in domestic and international cash management, operations and branch management, payment system design, balance sheet engineering and yield management. His prior affiliations include management positions with Wells Fargo Bank, Bank of Montreal and Arthur Andersen, London. Lewis holds bachelor’s and master’s degrees in engineering from Queens’ College, Cambridge, England, and is a Chartered Accountant.