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

Business Wire, March 28, 2005

SAN FRANCISCO -- 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."