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Bankers Discover Many Benefits of FedEDI

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Bankers Discover Many Benefits of FedEDI

Bankers across the Eighth District are finding FedEDI® software, which has been available for more than eight months now, a big asset to their institutions.

FedEDI, the Fed's new financial EDI translation and reporting package, works with FedLine® software.

FedEDI enables electronically connected financial institutions to translate payment-related information attached to addenda records of ACH files into a human- or computer-readable format.

In plain English--FedEDI helps you help your customers. Translating addenda information lets you pass along a wealth of information to your customers, such as invoice data, purchase order numbers and Social Security representative payee names. This information helps your customers reconcile their statements with their accounts payable systems.

Help Your Customers and Yourself

One of the biggest benefits for bankers is the enhanced customer service that FedEDI lets them provide their business clients.

"Our bank is very customer-service driven," explains Amy Lyons, computer operator and ACH coordinator at Phelps County Bank in Rolla, Mo. "FedEDI lets us be proactive instead of reactive in meeting customer needs."

Security Bank & Trust Co. in Paris, Tenn., also enjoys the customer service advantage of FedEDI. Operations officer Anita Rogers says the main reason her bank started using FedEDI was to help several large business customers.

"We service a large nursing home that has been steadily receiving more electronic Social Security payments for residents," says Rogers.

She says it used to have only a handful of clients using direct deposit, but now that number is up to 40 or 50. Providing information about representative payees helps the nursing home understand what payments are coming in for which residents.

In addition to the added benefit for customers, FedEDI helps you save time. Without this software, many financial institutions must manually compare their customers' bank statements with a FedLine printout to reconcile addenda records with ACH payments.

"We would spend one to two hours at the end of each month, which is our busiest time, trying to help one particular client identify payees," says Rogers. "FedEDI is a godsend for us."

The time savings is even more for Jerry Ables, vice president at the Bank of Commerce in Greenwood, Miss., who says workers there save from 30 to 45 minutes each day.

"All we have to do now is print out a report and mail or fax it to our customers," explains Ables.

Find It Functional and Easy to Use

Many people cringe at the thought of learning a new software program, but the word on the street is that FedEDI is very simple.

"It's incredibly easy to figure out and use," says Rogers. "We just run a Quick Scan and print a summary report, which we include in our customer's bank statement."

Ables said Bank of Commerce decided to use FedEDI instead of other commercial EDI translation software because of its positive experience with FedLine.

"Our bank chose FedEDI because of our success and expertise with FedLine," explained Ables. "We just knew FedEDI would be a good product."

Peace of mind is another FedEDI benefit for the Bank of Commerce. Ables is comfortable knowing that the bank is in compliance with the recently enacted NACHA rule requiring financial institutions to provide addenda information to ACH receivers if requested.

If you have any business customers who receive multiple ACH payments, FedEDI is a perfect way to enhance the service you provide them. FedEDI is free for all financial institutions that have electronic connections with the Fed. All you need is a little time to learn the software.

If you are interested in using this service, call the FedLine Help Desk at 1-800-333-0861 and press 1 to speak with an Electronic Access Support representative.

 

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