SLMsoft.com adds online purchase of U.S.Savings Bonds to Internet banking product
Online purchase of U.S. Savings Bonds increases convenience
to consumers and reduces cost for banks.
TSE Symbols: ESP.A and ESP.B
TORONTO, Feb. 21 /CNW/ - SLMsoft.com, Inc., a leading global provider of
electronic financial transaction solutions for the e-commerce market,
announced today that it will add an online purchase option for U.S. Savings
Bonds to its ESP-Link Virtual Financial System (VFS) Internet banking product.
Offering online purchase of U.S. Savings Bonds turns a previously paper- and
time-intensive application process into a profitable, more convenient one for
financial institutions and their customers.
With Internet banking, no manual processing is required by the bank or
its issuing agents. The bank simply copies the order file and sends the
purchase request out electronically over a secure federal bank line. The new
electronic process takes two minutes to transmit all the daily bond
transactions, whereas the old process could take 15 minutes or longer per
transaction because the application had to be filled in by hand or typed. Then
the application had to be certified, stamped and signed by an in-house issuing
agent. Finally, copies had to be separated for the bank and purchaser. Once
the customer left, the bank still had additional paperwork it was responsible
for generating for each Savings Bond ordered. Under the new online banking
system, SLMsoft.com's VFS application will help online banks offer consumers a
faster, more convenient and accurate way to purchase Savings Bonds 24 hours a
day, seven days a week.
"We are focused on providing end-to-end e-commerce solutions to the
financial marketplace," explained Govin Misir, Chairman and CEO of
SLMsoft.com. "Purchasing U.S.Savings Bonds online is just one example of how
our technological innovations are shaping tomorrow's business environment.
That's why so many transaction-based revenue management operations are moving
to the Internet. When you examine the benefits of improved customer service
delivered faster, more conveniently and at lower cost, the Internet is truly
the next logical step for most financial institutions," Misir continued.
"That's why so many companies are turning to SLMsoft.com for Internet
solutions."
SLMsoft.com has incorporated the online purchase of U.S. Savings Bonds
into its VFS Release 4, which is scheduled to be launched in early March 2000.
Internet banking product ESP-Link/VFS will enable electronic fund transfers
between consumers' bank accounts, financial institutions and the Treasury
Department. Since the purchaser completes the online application, accuracy is
assured because all data must match the customer's account information exactly
or the transaction will be rejected. The VFS Release 4 Savings Bond module
will be a standard feature of ESP-Link/VFS.
With VFS's automated online "point & click" user-friendly application,
purchasers simply fill out their personal identification information online,
select the series and denomination of bond they want to buy and submit the
purchase request to their financial institution. The institution then debits
the customer's selected account or credit card and sends an electronic order
to the Federal Reserve Bank's Savings Bond processing center. In the past,
customers would receive their orders in about three weeks. With Internet
banking, Savings Bonds are issued and delivered in about one week. As a
result, banks spend a fraction of the time processing what used to be a
labor-intensive, time-consuming order process.
"We want to make it easier for customers to purchase U.S. Savings Bonds.
Through our partnership with SLM and their financial institution customers, we
are providing another avenue for this to happen," said Van Zeck, Commissioner
of the Public Debt. "SLM's large customer base across the country
significantly increases the number of financial institutions that will offer
this convenient way to save."
"SLMsoft.com has demonstrated industry-wide leadership in providing
technology solutions to the financial services sector, enabling banks and
other financial institutions this significant opportunity to improve
operations and profitability while also improving customer service," remarked
Virginia Weidle, Savings Bond Marketing Office spokesperson. "Moving the sale
of U.S. Savings Bonds to the Internet is a significant improvement for
financial institutions. Banks and their issuing agents can anticipate that the
increased convenience to consumers and ease of processing for banks will
increase Savings Bonds sales. Banks are beginning to show great interest in
the program," Weidle continued. "Since its inception in late 1997, we have
seen a strong rise in the number of banks signed up for the program."
"Americans have relied on Savings Bonds for decades as an important tool
in their efforts to save for their future," Weidle added. "By bringing Savings
Bonds as close as your home computer, this program makes it more convenient
for millions of Americans to add to their savings and build a strong financial
future for themselves and their families."
"Financial institutions that add Savings Bonds to their online banking
features are doing a smart thing," Weidle explained. "In addition to providing
another convenient service to their customers, they are moving their
organizations closer to full-service home banking. Additionally, issuing
agents will realize such benefits as: reduced lobby traffic, reduced
labor-intensive paper application processing and a decreased data entry
workload for their bank's administrative staff," Weidle concluded.
About the U.S. Savings Bonds Program
The Savings Bonds Program has made it a more attractive way for millions
of Americans to save. The Treasury Department now offers two types of Savings
Bonds to investors -- the traditional Series EE and the new inflation-indexed
Series I. EE Bonds, sold at half their face value, offer a market-based
interest rate that is 90% of 5-year Treasury rates and increase in value every
month. These new terms for EE Bonds began May 1, 1997, and the interest rate
is 5.19% through April 30, 2000. Series I Bonds, introduced on September 1,
1998, are sold at full face value and offer a real rate of return over and
above inflation. The I Bond's earnings rate -- 6.98% through April 30, 2000 --
is a combination of two factors: a guaranteed fixed rate, which remains the
same throughout the life of the bond; and the variable semi-annual inflation
rate. Both Series EE and Series I Bonds are available online in $50, $75,
$100, $200 and $500 denominations. For more information, visit our Savings
Bonds Connection Web site at www.savingsbonds.gov.
About SLMsoft.com Inc.
Founded in 1986, SLMsoft.com is a single-source global provider of fully
integrated, end-to-end electronic commerce solutions for financial
institutions, health care and retail organizations using open system
technologies. SLMsoft.com is the first to offer the financial market the
compatibility, flexibility and upward scalability necessary for global
electronic service delivery. Its ESP-Link(TM) suite of totally secure
e-commerce solutions include Internet and personal computer banking; ATM
networks and services; point-of-sale; debit, credit and smart cards; and check
imaging and core processing. SLMsoft.com, with over 700 employees in 30
offices worldwide, serves more than 1,500 customers in 52 countries on five
continents.
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For further information: At SLMsoft.com: Mike Roddin, SLMsoft.com
Public Relations Manager, Tel: 800-581-6016 ext. 145 or (913) 307-5145,
Fax: (913) 599-0418, Email: miker@slmsoft.com, www.slmsoft.com;
At Savings Bond Marketing Office: Virginia Weidle, Public Affairs Officer,
Treasury Department Marketing Office, Tel: (314) 539-6675,
Fax: (314) 539-6680, Email: vweidle@bpd.treas.gov, www.savingsbonds.gov;
To request a free copy of this organization's annual report, please go to
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