The New Wells Fargo Electronic Deposit Services Break Through Banking

The New Wells Fargo Electronic Deposit Services Break Through Banking Boundaries in the Age of Check 21

    Business Editors/High-Tech Writers/Banking Writers

    SAN FRANCISCO--(BUSINESS WIRE)--March 28, 2005--Wells Fargo & Company (NYSE:WFC)

--	Becomes First Bank to Offer Business Customers the Ability to Deposit Checks Remotely Using Internet Portal, Eliminating Trips to Bank Branches
--	7-Eleven, Inc. Takes Early Advantage of the Wells Fargo Electronic Deposit Solution

    Wells Fargo & Company (NYSE:WFC) has unveiled two new services that will allow a wide variety of businesses to deposit checks remotely from their own locations, helping them to save time, eliminate courier costs and consolidate their banking relationships with one provider nationwide.
    As a back-office revolution takes hold in businesses across the country, and paper checks go electronic, Wells Fargo is leading the way, bringing the ability to deposit checks right from a customer's desktop. The Desktop Deposit(SM) service is the first product in the industry to be available online through Wells Fargo's Commercial Electronic Office(R) (CEO(R)) portal. A preliminary software version is currently being piloted by Semitropic Water Storage District in Central California. The pioneering CEO portal allows companies to bank at their convenience -- anywhere, anytime. Businesses can also use the new Wells Fargo electronic deposit, piloted successfully by national retailer 7-Eleven, Inc. Wells Fargo electronic deposit allows users with their own scanning equipment to make deposits simply by sending a standardized file to the bank.
    The innovations come as Wells Fargo, a leader in online banking and e-checking, is helping businesses realize the promise of The Check Clearing for the 21st Century Act (Check 21), which took effect last October. The law allows for printed versions of scanned paper checks to act as legal substitutes, greatly speeding up clearing times and ending trips to the bank to deposit checks. The legislation has been recognized for its potential in transforming check clearance times, but until now, no major bank product had been introduced for businesses eager to move into electronic check processing.
    With Wells Fargo's Desktop Deposit service and Wells Fargo electronic deposit, companies can improve cash flow by eliminating transportation costs and delays in the check-clearing system, especially when a merchant's bank accounts reside in several regions nationwide.
    The new services are designed to vastly simplify treasury and accounting functions, especially for retail, consumer and back-office businesses that manage high volumes of checks from local customers. A recent Treasury and Risk Management magazine survey of CFOs, treasurers and cash managers said that 68 percent of respondents felt that Check 21 would provide faster funds availability; 64 percent said it would lead to better check processing efficiency.
    "Check 21 allows us to take anywhere, anytime banking to the next level," said Steve Ellis, head of Wholesale Services at Wells Fargo. "It is truly banking without boundaries. Our business customers can now deposit checks into their Wells Fargo accounts from their offices, stores or operations. There's no more need to deal with multiple branches."

    The Desktop Deposit Service

    Businesses that take advantage of Check 21 will immediately give themselves a competitive advantage. With no software to install, the Desktop Deposit service allows for quick implementation company-wide. Customers can scan checks at their desks using equipment provided by Wells Fargo. Then they review the check images and key in Dollar amounts via the CEO portal, and electronically send the deposit to the bank. Customers will improve cash flow by getting funds faster -- within two days of deposit -- compared with up to five days using a paper check. Fraud can be minimized as notice of returned checks will arrive faster. Overall cash management becomes more efficient thanks to the reporting capabilities of the CEO portal. And customers are not burdened by trips to bank branches.
    "Desktop Deposit service is the first true Internet solution to hit the market since Check 21 took effect," said Danny Peltz, executive vice president of Wholesale Internet and Treasury Solutions at Wells Fargo. "This robust addition to our CEO portal makes it easier for our customers to conduct business."
    Businesses relying on the Desktop Deposit service can also rest assured that they'll be working with the nation's leader in Internet banking: Wells Fargo was recognized as best-in-class overall for online banking and in a recent biannual review by Watchfire(R) GomezPro.

    California Water District Pilots The Desktop Deposit Service

    Desktop Deposit service has already made a splash with Wasco, CA-based Semitropic Water Storage District. The district began piloting the product in November. "With Desktop Deposit service we're no longer reliant on our local bank branch," said Drew Hamilton, Semitropic's Controller. "I was losing about 10 hours of staff time every two weeks because of the time required for our employees to physically take checks to the bank for deposit -- time that could be put to much more productive use. Desktop Deposit service has significantly reduced the complexity and time involved in depositing our checks. It gives us greater flexibility, as we no longer have to meet the branch's 4:00 p.m. deadline. Instead, we can electronically send in our checks up to 7:00 p.m. Pacific Time and know they'll be deposited that same day. Right off the bat, we gain two hours in productivity and another three hours in convenience."
    The Desktop Deposit service is ideally suited for customers processing up to 299 checks per day, per location. Tested in software versions before the launch, the product has won early high praise among Wells Fargo customers, including leading educational institutions, utilities and real estate management companies.
    Since the Desktop Deposit service is integrated with the CEO portal, enhancements can be performed across all image-capture locations instantaneously. Wells Fargo has already issued 20 functionality improvements and more than 30 new services since the portal's launch in 2000. The CEO portal is now being used by more than two-thirds of Wells Fargo's commercial customers.

    7-Eleven, Inc. Pilots Wells Fargo's Electronic Deposit

    Businesses with a network of proprietary scanning equipment can use Wells Fargo electronic deposit to streamline their depository process. Companies use their existing scanning equipment to electronically transmit deposits directly from their business location to the bank.
    "With Wells Fargo electronic deposit we fit the solution to the customer's existing imaging system," said Stephanie Sturgis, senior vice president, Wells Fargo. "Given the high check volume of cash-flow businesses, companies are clamoring for more simplified solutions when it comes to doing transactions with their bank. That is the beauty of this program."
    7-Eleven, Inc., the nation's largest independent convenience retailer, is the bank's first major corporate customer to pilot Wells Fargo electronic deposit through self-service virtual commerce and financial services kiosks known as Vcom(R).
    Through its network of Vcom kiosks, 7-Eleven customers can make ATM withdrawals, cash payroll and government checks, transfer money, pay bills and purchase items such as prepaid calling cards, money orders and telecommunications services. 7-Eleven expects to complete a rollout of Wells Fargo electronic deposit to all 1,050 of its Vcom machines this year, allowing the retailer to perform daily deposits of checks without the expense of armored truck service. In the future, 7-Eleven expects to offer banks the ability to provide deposit services to their retail customers at its Vcom kiosks.
    "We selected Wells Fargo as our provider because of its leading position in developing the infrastructure to facilitate Check 21 legislation," said Rick Updyke, vice president, Business Development for 7-Eleven. "Vcom is uniquely positioned to take advantage of electronic check deposits because of its image-capturing capabilities. Once the rollout is completed, we'll look to broaden Vcom's capabilities with services like deposit acceptance."
    Whether using the Desktop Deposit service or Wells Fargo electronic deposit, Wells Fargo business customers will not only see a reduction in check-processing fees, but they will also avoid handling paper-based checks in the years to come. Due to declining check volumes, the Federal Reserve is expected to raise processing fees to cover its fixed costs, ultimately meaning higher fees for banks and their customers who continue to use the paper-based system. Checks made up 45 percent of non-cash payments in 2003, down from 57 percent in 2000, averaging a 4.3 percent drop annually, according to a recent Fed study.
    "The Wells Fargo electronic deposit service is a wonderfully efficient way to more quickly convert a paper check into a bank deposit," Steve Ellis said. "Wells Fargo's Check 21 solutions represent the next stage in payment processing."

    About Wells Fargo & Company

    Wells Fargo & Company is a diversified financial services company with $428 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,000 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only "Aaa"-rated bank in the United States.

    About 7-Eleven, Inc.

    7-Eleven, Inc. is the premier name and largest chain in the convenience retailing industry. Headquartered in Dallas, 7-Eleven, Inc. operates or franchises approximately 5,800 7 Eleven(R) stores in the United States and Canada and licenses more than 22,100 7-Eleven stores in 17 other countries and U.S. territories. During 2004, 7-Eleven stores worldwide generated total sales of more than $41 billion. Find out more online at www.7-Eleven.com.

    About Semitropic Water Storage District

    Semitropic Water Storage District, located in California's Central Valley, utilizes a proven groundwater storage program that helps meet the drought-year needs of more than 20 million people at 15 to 20 gallons per day. With vast energy facilities which include a 1,000 KW solar generation site, 1,000 KW hydroelectric facility, 4,000 KW of natural gas engine generators and 54 miles of electrical transmission lines, the district also delivers water using over 240 miles of pipeline and canals for the irrigation of approximately 140,000 acres for agricultural uses. For more information, visit www.semitropic.com.

--30--MER/sf*

CONTACT: Wells Fargo & Company Wendy A. Grover, 415-396-5905

KEYWORD: CALIFORNIA TEXAS INDUSTRY KEYWORD: BANKING RETAIL SOFTWARE INTERNET E-COMMERCE PRODUCT SOURCE: Wells Fargo & Company

Copyright Business Wire 2005