Check it Out: Consumers Don't Have a Clear Image of Check Changes; 95 Percent of Consumers Uninformed of the Check 21 Law and Its Impact

Business Wire, June 18, 2004

DAYTON, Ohio -- An online consumer poll conducted by Harris Interactive(R) for NCR Corporation (NYSE:NCR) confirmed what many financial industry insiders already know. Most consumers are completely unaware of the Check Clearing for the 21st Century Act (Check 21) and its potential impact on their current banking practices.

Grounded planes on 9/11 halted check processing throughout the United States, costing the industry billions and accelerating the need for a dramatic change in the check processing system. The resulting law takes effect October 28, 2004.

According to the poll, conducted May 25-27, 2004, 95 percent of checking account holders are unaware of this legislative action. The new Check 21 law allows for a substitute check (based on a digital image of the original check) to be accepted as legal in the check processing system. It opens the door for imaged-based processing and exchange, essentially removing paper checks from the processing system over time.

According to a 2003 Global Concepts report, about 41 percent of U.S. banking customers currently receive cancelled paper checks in the mail. The image-based processing environment offers banks the opportunity to stop this practice altogether. Instead, customers may receive imaged copies of their cancelled checks, a statement including a picture of their checks or online access to check images.

In addition, the adoption of this new legislation means some banks may allow faster posting of checks deposited to a customer's account. Eighty-nine percent of the poll respondents liked the idea of faster deposit posting. This acceleration of funds availability means consumers may find their funds clear within hours instead of days. Some consumers will need to adjust their check writing habits, however, if they write checks before their deposits are actually posted.

Today's lack of awareness among consumers does not necessarily mean consumers won't readily adapt to the change. In fact, 87 percent of the online poll respondents rated online access to their cancelled checks as convenient. Seventy-nine percent rated receiving image-based statements as convenient. Both of these were rated higher than receiving cancelled checks in the mail (65 percent).

Keith Taylor, senior vice president of NCR's Financial Solutions Division, said, "Many consumers like the idea of being able to search and find their own records on their own time. This data is encouraging for banks that may be concerned about customer acceptance of the changes. NCR provides banks the technology and services needed to manage the customer transition to this new way of doing business."

Survey Methodology

Harris Interactive(R) fielded the study from May 25-27, 2004, via its QuickQuery(SM) online omnibus service, interviewing a nationwide sample of 2,148 U.S. adults (18 ), of whom 2,010 currently own checking accounts. In theory, with a probability sample of this size, one can say with 95 percent certainty that the results have a statistical precision of plus or minus 3 percentage points of what they would be if the entire population of adults who have checking accounts had been polled with complete accuracy. This is not a probability sample. Data was weighted to be representative of the total U.S. online adult population on the basis of region, age within gender, education, household income and race/ethnicity.

About Harris Interactive(R)

Harris Interactive (www.harrisinteractive.com) is a worldwide market research and consulting firm best known for The Harris Poll(R), and for pioneering the Internet method to conduct scientifically accurate market research. Headquartered in Rochester, New York, Harris Interactive combines proprietary methodologies and technology with expertise in predictive, custom and strategic research. The company conducts international research from its U.S. offices and through wholly owned subsidiaries - London-based HI Europe (www.hieurope.com), Paris-based Novatris and Tokyo-based Harris Interactive Japan - as well as through the Harris Interactive Global Network of independent market and opinion research firms.

About NCR Corporation

NCR Corporation (NYSE:NCR) is a leading global technology company helping businesses build stronger relationships with their customers. NCR's ATMs, retail systems, Teradata(R) data warehouses and IT services provide Relationship Technology(TM) solutions that maximize the value of customer interactions and help organizations create a stronger competitive position. Based in Dayton, Ohio, NCR (www.ncr.com) employs approximately 28,900 people worldwide.

NCR and Teradata are trademarks or registered trademarks of NCR Corporation in the United States and other countries.