PR pros, tech experts tackle Check 21 start date

Northwestern Financial Review, Nov 15-Nov 30, 2004

Although the Oct. 28 start date for the Check Clearing for the 21st Century Act meant a flurry of activity for public relations practitioners last month, it seemed to be a non-event for the operations professionals most affected.

"We have conducted several forums on Check 21," noted Fred Laing, president of the Upper Midwest Automated Clearing House Association, which conducted its annual payments conference two weeks before the Check 21 law took effect. Laing, however, called the start date a non-event. "Most banks are taking a wait-and-see attitude about Check 21. It's going to be like Y2K. This is an evolutionary development, not a revolutionary one."

Not that you would ever know that by following the mainstream press. Debra Hurston, director of communications for the Minnesota Bankers Association, was on the air with the Twin Cities' largest radio station early in the morning on Oct. 27 explaining to a reporter that the law would bring efficiencies to an antiquated payments system.

John Hall, a public relations professional at the American Bankers Association, said he has spent a good part of his time this fall responding to inquiries from the press about Check 21.

Meanwhile many of the people who work in banks and will be directly involved in the processing of images and the new image replacement documents were meeting at the Northland Inn in Brooklyn Park, Minn., Oct. 14-15 for UMACHA's annual conference. The organization teamed with the Minneapolis Federal Reserve Bank to update 350 participants about ACH, Check 21, imaging and other topics. They came from the Dakotas, Wisconsin, Michigan and Minnesota to listen.

A conference centerpiece was fraud; a panel including Hennepin County Attorney Amy Klobuchar told participants that all financial institutions are vulnerable. Sophisticated thieves, however, are increasingly targeting mid-sized institutions, which seem to lack the firewalls and other security measures that the nation's largest banks have installed.

Laing, who has headed UMACHA for 19 years, said operations professionals in financial institutions are exploring the possibilities for combining ACH with check imaging.

The event included 19 exhibitors from companies offering products and services related to the payments system. The conference, which was heavy on technical topics such as ACH origination software, service quality in epayments, and quality standards for check images, closed with an inspiring message from Steve Ford, son of former U.S. President Gerald R. Ford.