Assessing Your RDC Performance - EasCorp
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September 2018 • Volume 16 • Issue 9
INSIDE Assessing Your RDC Performance
Assessing Your RDC Performance..1
Invented more than a decade ago, Remote Deposit Capture (RDC) is
Markets Preparing for the End of now an essential and widely popular deposit channel for businesses
LIBOR ..............................................2 and consumers. It has proven to be a powerful revenue-generating tool
Vertifi Software Security Guidelines as well, driving both member and deposit growth, and providing many
for Online Financial Activity............2 credit unions with opportunities for infrastructural and operational cost-
Credit Unions Kids at Heart® savings. While RDC is thought by many to be an efficient and stable
Teams Up with Team Jack deposit channel, it does carry, in its very design, the risk of duplicate
Foundation.......................................3 presentments, whether deliberate or unintentional. Credit unions must
A Special Thanks to the Credit therefore recognize and manage this risk as they leverage the channel's
Unions Kids at Heart 2018-2019 unique capabilities for system performance and operational efficiency.
Season Corporate Sponsors ..........4
Coin & Currency Reminder..............4 Technological advances in RDC solutions are driven in part by the
changing risk climate, including regulatory changes and innovations in
Become a Credit Unions Kids at fraud protection. Most recently, the July 1 Federal Reserve Regulation
Heart® Participating Credit Union..5
CC amendments—in particular, the indemnity shifts related to
A Special Thanks to Credit Unions restrictive endorsements—led to significant technological advancements
Kids at Heart® 2018-2019 in the detection of rear restrictive endorsements. EasCorp's subsidiary
Participating Credit Unions.............5
Vertifi® Software released new, advanced machine-learning tools
DeposZip® Tips ...............................6 and optional administrative portal enhancements to validate rear
endorsements. These tools are now in use at many financial institutions.
Meet the Vertifi® Software Team at
2018 Partners' Conferences .........6
On October 2, 2018, Vertifi will present the DeposZip® Performance
Upcoming Events.............................6 Analysis Webinar. In this short session, Vertifi's current RDC
service users will hear how the recent Regulation CC changes have
impacted their peers, as well as how to configure their own restrictive
endorsement text requirements and thresholds for optimal performance.
Then, the audience will learn how to calculate and understand two
distinct metrics that help gauge back office efficiencies around item
processing and review. The remaining time will be left open for
audience questions and discussion.
An invitation with instructions for registration will be sent via email
next week. If you have any questions, please contact Darlene Howlett
EasCorp and Vertifi will be (dhowlett@vertifi.com) at 800.428.1144, Ext. 3353, or Implementations
closed on Monday, and Support (support@vertifi.com), Ext 2.
September 3,
in observance of
Labor Day.
Markets Preparing for the End of LIBOR
by Kevin Peters, Assistant Vice President, Investment Services
Since news of the London Interbank Offered Rate (LIBOR) fixing scandal broke in 2012, market participants
around the world have been making plans to replace the index with something more reliable and not easily
manipulated. Most recently, market participants have been actively using a replacement rate with the issuance
of new bonds by Fannie Mae and the World Bank.
With the assistance of Wall Street banks, in 2014, the Federal Reserve (Fed) set up the Alternative Reference
Rates Committee (ARRC), made up of both bankers and regulators with the purpose of creating a dollar-based
alternative to LIBOR, which currently benchmarks an estimated $150 trillion of securities.
The ARRC looks to phase out LIBOR benchmarked securities over the next few years, and abandon all use of
LIBOR by the end of 2021. Beginning just this past April, the New York Fed began daily publishing of the U.S.
Secured Overnight Financing Rate (SOFR), a rate based on overnight repurchase transactions with the Fed.
The SOFR index is the committee's choice to eventually replace LIBOR. Since April, the SOFR rate has been
running on average about 18 basis points below one month LIBOR. In July, Fannie Mae issued $5 billion in
floating rate bonds based off SOFR. These were the first bond offerings based off the new rate. In August, the
World Bank followed suit with a $1 billion offering.
Some British banks have already discontinued reporting LIBOR in anticipation of the phase out. The next step
for the ARRC is to ease the transition by developing language to be included in the prospectus of LIBOR-based
securities to spell out what happens should LIBOR reporting become erratic, or end all together, and what
would trigger a switch to an alternative benchmark.
At their most recent roundtable in July, ARRC Chair Sandra O' Connor, said, "We hope to consult on and then
issue final recommendations on recommended contract language for floating rate notes, business loans, and
securitizations by the end of the year."
The committee had originally hoped to have SOFR-linked future markets up by the first quarter of 2019, but
market participants have already currently begun trading them. The committee still has plenty of issues to work
through before 2021, but so far, the transition is ahead of schedule.
Vertifi® Software Security Guidelines for Online Financial Activity
Vertifi® Software, LLC, EasCorp's CUSO, is pleased to announce that it has published a revised Security
Guidelines for Online Financial Activity on www.vertifi.com. The Security Guidelines for Online Financial
Activity describes some of the threats financial institutions face when performing online financial activity,
and itemizes the methods that Vertifi uses to protect its systems and data against these threats. The document
references some of the regulatory recommendations and requirements as well. The August 2018 Security
Guidelines for Online Financial Activity includes updates to Vertifi's minimum system requirements for
accessing its applications and portal. Vertifi encourages you to download and review its Security Guidelines
for Online Financial Activity. The document is available under the Due Diligence section of www.vertifi.com
to anyone with an Vertifi-issued digital certificate.
INSIDE EASCORP • SEPTEMBER 2018 • PAGE 2
Credit Unions Kids at Heart® Teams Up with Team Jack Foundation
For its 2018-2019 season, Credit Unions Kids at Heart® (CU Kids at Heart)
has teamed up with the Team Jack Foundation (Team Jack), a non-profit
organization chaired by New England Patriots running back Rex Burkhead,
in the fight against pediatric brain cancer.
The Team Jack Foundation began with a grass roots movement in Atkinson,
Nebraska by the family and friends of the group's namesake, Jack Hoffman.
A 12-year-old who has battled pediatric brain cancer for most of his life,
Jack formed an unlikely friendship with Burkhead when the athlete was a
star player at the University of Nebraska. An early advocate for Hoffman and
children like him, and part of Team Jack from its inception, Burkhead now
serves on the foundation's board of directors.
In the last several years, both CU Kids at Heart and Team Jack have
(l-r) Mark Winship of 98.5 the Sports Hub, separately directed funds to research projects aimed at the prevention and
Rex Burkhead of the New England Patriots,
and Jane Melchionda of EasCorp celebrate
treatment of pediatric brain cancer, the leading cancer cause of death in
the 2018-2019 season collaboration children. This year, CU Kids at Heart will donate $30,000 toward two
clinical trials lead by research investigators at Dana-Farber Cancer Institute
in Boston, Massachusetts, and currently supported by the Team Jack Foundation. The two nonprofits have
partnered with 98.5 the Sports Hub on a promotional campaign called First Downs to Fight Pediatric Brain
Cancer to highlight this donation. When the New England Patriots make a first down, you'll hear Burkhead's
radio spots promoting this special collaboration and important shared fundraising directive.
“CU Kids at Heart believes in the remarkable resilience of children, and we believe that medical research
provides the promise of a future where every child can enjoy good health,” said Jane C. Melchionda,
President/CEO of EasCorp and founder of CU Kids at Heart. "The Team Jack Foundation shares this outlook.
And now, our joint financial support of these clinical trials brings that bright future nearer to us.”
The jointly-funded clinical trials will test the efficacy of two promising targeted agents, MEK162 and TAK580,
to stop disease progression, and will allow for critical analysis of tumor material generated by these trials. The
goal of these clinical trials is, ultimately, to support the development of chemically engineered smart drugs that
target common mutations which drive brain tumor growth. Hopefully, these targeted agents will be more
successful than those treatment protocols currently available, and cause less adverse effects.
The First Downs to Fight Pediatric Brain Cancer campaign is generously supported by: Digital Federal Credit
Union, Granite State Credit Union, Hanscom Federal Credit Union, Jeanne D’Arc Credit Union, MIT Federal
Credit Union, Merrimack Valley Federal Credit Union, Rockland Federal Credit Union, RTN Federal Credit
Union, St. Anne’s Credit Union of Fall River, and Vertifi Software, LLC.
To learn more about CU Kids at Heart and how you can support the Team's
research directive, please contact Tracey Dickey (tdickey@eascorp.org)
at 800.428.1144, Ext. 3320, or Deirdre Zaccagnini (dzaccagnini@eascorp.org),
Ext. 3347. Visit www.cukidsatheart.org.
INSIDE EASCORP • SEPTEMBER 2018 • PAGE 3
A Special Thanks to the Credit Unions Kids at Heart®
2018-2019 Season Corporate Sponsors
Credit Unions Kids at Heart® (CU Kids at Heart) would like to thank its 2018-2019 Season Corporate Sponsors.
Corporate Sponsors support the Team's research directives and provide critical financial support so no donations
are held by CU Kids at Heart to cover overhead or administrative costs.
Sponsorships are limited; if you are interested in joining for the 2018-2019 season, please contact
Eleanor Melchionda (emelchionda@eascorp.org) at 800.428.1144, Ext. 3323, or Deirdre Zaccagnini
(dzaccagnini@eascorp.org), Ext. 3347.
Coin & Currency Reminder
In observance of Labor Day, all Federal Reserve offices will be closed on Monday, September 3, 2018. As a
reminder, cash orders prepared by the Federal Reserve must be placed two business days in advance of
delivery (e.g. orders must be placed by 11:30 a.m. ET on Monday for Wednesday delivery). Due to the
holiday, you may need to place your cash order a day earlier than normal (e.g. the same order referenced
above should be placed on Friday for Wednesday delivery). If you have any questions, please contact
Jay Grifone (jgrifone@eascorp.org) at 800.428.1144, Ext. 3512, or Correspondent Services at Ext 4.
INSIDE EASCORP • SEPTEMBER 2018 • PAGE 4
Become a Credit Unions Kids at Heart® Participating Credit Union
Founded in 1996 and organized by EasCorp, Credit Unions Kids at Heart® (CU Kids at Heart) is a favorite
collaborative philanthropic activity of the credit union community nationwide. A Massachusetts 501(c)3
charitable organization, CU K@H reflects the credit union industry’s core belief in cooperation and
collaboration in service of a greater good. Its mission is simple: CU Kids at Heart seeks to help children lead
happy and healthy lives. You are invited to join CU Kids at Heart in service to that mission.
Since its founding, CU Kids at Heart has raised more than $6 million to fund important and life-changing
research on pediatric neurological disorders, research that is shared with pediatric hospitals and care centers
all around the world. The Team's 2018-2019 research directives include diverse, and promising, investigations
of such topics as: the impact of parental emotional states on a child's ongoing functional or emotional status,
development of adaptive skills, or their recovery from illness; the role of resolvins and protectins in pediatric
cancers and their potential to control transplant and immune therapy-mediated inflammation; the potential to
pinpoint and target, perhaps with less invasive measures, the precise point of origin for seizures in the brain;
the efficacy of targeted agents to stop disease progression of pediatric brain cancers; and, much more.
A special part of the CU Kids at Heart Team, Participating Credit Unions are acknowledged widely online on
the organization's website, in press releases and publications, at events and programs, and more. Although it is
not required, some Participating Credit Unions develop relationships with specific runners or patient partners on
the Team, and help raise additional funds on their behalf.
There's still time to join CU Kids at Heart for the 2018-2019 season as a Participating Credit Union!
To learn more, please contact Eleanor Melchionda (emelchionda@eascorp.org) at 800.428.1144, Ext. 3323,
or Deirdre Zaccagnini (dzaccagnini@eascorp.org), Ext. 3347.
A Special Thanks to Credit Unions Kids at Heart®
2018-2019 Participating Credit Unions
600 Atlantic FCU • Acushnet FCU • Boston Firefighters CU • Bridgewater CU • Cambridge Firefighters FCU
Cambridge Teachers FCU • Chelsea Employees FCU • City of Boston CU • Commonwealth Utilities Emp. CU
Digital FCU • Direct FCU • Energy CU • Granite State CU • Hanscom FCU • Harvard University Emp. CU
Holyoke CU • HTM CU • Jeanne D’Arc CU • Liberty Bay CU • Lynn Firemen’s FCU • MIT FCU
Marblehead Municipal FCU • Massachusetts Family CU • Members Plus CU • Merrimack Valley FCU
Methuen FCU • Middlesex-Essex Postal Emp. FCU • Mills42 FCU • Money One FCU • NASA FCU
New England Teamsters FCU • New Hampshire FCU • Northeastern University FCU • Pawtucket CU
PSECU • Plymouth County Teachers FCU • Quincy CU • Randolph-Brooks FCU
Reading Mass. Town Emp. FCU • Revere Municipal Emp. FCU • Rockland FCU • RTN FCU
Saco Valley CU • Santo Christo FCU • Service CU • St. Anne’s CU of Fall River
St. Anthony of New Bedford FCU • St. Anthony of Padua FCU • St. Dominic’s FCU • St. Jean’s CU
St. Vincent Hospital CU • Stewart’s FCU • Tewksbury FCU • Tremont CU • USALLIANCE Financial
Webster First FCU • Wellesley Municipal Emp. FCU • Western Connecticut FCU • Woburn Municipal FCU
INSIDE EASCORP • SEPTEMBER 2018 • PAGE 5
UPCOMING EVENTS
Association of Credit Union Senior Officers
Remote DeposZip Capture ® Members' Meeting: Member Engagement Topics
Helpful Tips and Tricks Thursday, September 13, 2018
A reminder that the Rolling 30-Day Deposit Limit MHA Conference Center
under the risk profile settings is not a calendar Burlington, MA
limit. In other words, the Rolling 30-Day Deposit
Limit "rolls" to, or calculates the deposit total for, Credit Unions Kids at Heart®
the 30-day period preceding the current date, Invitational Golf Tournament
regardless of the calendar date. Monday, September 17, 2018
Tedesco Country Club
Marblehead, MA
Meet the Vertifi® Software Team
DeposZip® Performance Analysis Webinar
at 2018 Partners' Conferences Tuesday, October 2, 2018
EasCorp's CUSO, Vertifi® Software, LLC, is pleased
to sponsor the following upcoming conferences hosted International Payment Services Users Meeting
by our valued partners: honoring International Credit Unions Day
Thursday, October 18, 2018
DCI 2018 Annual Bankers Conference In-person session at EasCorp, Burlington, MA
September 16-17, Overland Park, KS or online webinar
Share One SYNC 2018 - Tune In, Tune Up! Association of Credit Union Senior Officers
October 21-24, Nashville, TN Members' Meeting: Leadership Topics
Thursday, November 15, 2018
If you are attending any of the conferences above, MHA Conference Center
please stop by the Vertifi booths to meet the team Burlington, MA
and learn about DeposZip® Remote Deposit Capture
solutions. Association of Credit Union Senior Officers
Members' Meeting: Investment Topics &
ACUSO Annual Meeting
Thank you to all who attended Vertifi's presentation Wednesday, December 5, 2018
RDC Today: Regulation CC and Other Risk MHA Conference Center
Management Considerations or those who visited its Burlington, MA
booth at the 2018 NCR Innovation Conference in
Las Vegas, NV, from August 27-29, 2018. For more information, or to register for the events above,
please visit the News & Events page on www.eascorp.org.
35 Corporate Drive, www.eascorp.org
Suite 300
Burlington, MA 01803
781.933.9950
800.428.1144
INSIDE EASCORP • SEPTEMBER 2018 • PAGE 6
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