SunGard Sponsored Survey Reveals High Lockbox Processing Fees are Driving Adoption of Digital Remittance Processing

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We are seeing the pain points in the industry that are leading companies to seek better alternatives for remittance and auto-cash processing

New York (Vocus) June 16, 2009

SunGard today announced the results of its remittance and auto-cash processing survey. The findings of the survey reveal that high lockbox fees, low productivity and the need for improved accuracy are driving corporations to adopt more sophisticated technology for receivables processing.

A poll of 100 finance executives across a diverse range of industries revealed that many companies are still operating with manual processing of checks and remittance advice. This results in high costs, delays in posting cash, increases in exceptions, errors and days sales outstanding (DSO) and poor visibility to cash flow due.

The survey findings demonstrate how the bottom line is affected: 53% of companies with at least 1B USD in revenue state that they are spending from $10-30K or more a month in lockbox processing fees, with half of those companies exceeding $30K monthly. These same companies also reported an average of 29 in-house full time equivalents (FTE's) to help with the cash application process. Other key findings represent delays in cash application of two or more days, issues with the accuracy of data and with matching of payments to invoices.

Kelly Kendall, senior director of revenue management at YRC Worldwide Inc., commented on the company's adoption of digital remittance and auto-cash processing technology: "Faced with rising costs and economy- driven softer shipping volumes, companies like YRCW have learned to leverage technology not only to improve operating margins, but also to enhance processing accuracy and speed the application of customer payments to clear open receivable dollars faster."

"We are seeing the pain points in the industry that are leading companies to seek better alternatives for remittance and auto-cash processing," said C.J. Wimley, executive vice president, corporate solutions for SunGard's AvantGard business unit. "SunGard helps organizations to reduce cycle times, decrease operating expenses and achieve a more accurate, timely and effective revenue cycle by helping them to automate and digitize the entire remittance data capture and cash application process."

Click here to download a free copy of the research findings, Transformation in Remittance and Auto-Cash Processing.

Please join us for a webinar to discuss these survey findings as well as advancements in digital remittance and auto-cash processing technology on Wednesday June 24, 2009. Click here to register.

About AvantGard
SunGard's AvantGard is a leading liquidity management solution for corporations, insurance companies and the public sector. AvantGard provides chief financial officers and treasurers with real-time visibility into cash flows and increased operational controls around receivables, treasury and payments. AvantGard helps companies drive free cash flow and reduce inefficiencies across the ecosystem of suppliers, buyers, banks and other trading partners. For more information, visit http://www.sungard.com/avantgard.

About SunGard
SunGard is one of the world's leading software and IT services companies. SunGard serves more than 25,000 customers in more than 70 countries, including the world's 25 largest financial services companies.

SunGard provides software and processing solutions for financial services, higher education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software.

With annual revenue exceeding $5 billion, SunGard is ranked 435 on the Fortune 500 and is the largest privately held business software and services company on the Forbes list of private businesses. Based on information compiled by Datamonitor*, SunGard is the third largest provider of business applications software after Oracle and SAP. Continuity, Insurance & Risk has recognized SunGard as service provider of the year an unprecedented five times. For more information, please visit SunGard at http://www.sungard.com.

*January 2009 Technology Vendors Financial Database Tracker http://www.datamonitor.com

For more information, please contact:
Adriana Senior
Vice President, Media Relations
SunGard Financial Systems
Tel: +1-718-578-1130

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