Check Modernization Initiative in Full Swing

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Building on our tradition of excellence in customer service quality, the Federal Reserve System is making an important investment in the future of check services. We have established a Check Modernization initiative that will fundamentally redesign our infrastructure for providing both paper and electronic check services over the next three years.

Why Now?
Industry changes and technological advances are challenging us to retool our check-processing environment so that we can respond quickly to changing market needs and remain efficient and competitive. The Check Modernization initiative is designed to improve the overall quality and uniformity of check services to all of our customers. The new infrastructure will improve Reserve Bank operating efficiency, facilitate the move to electronic payments and speed the rollout of new products.

Specifically, Check Modernization involves standardizing and re-engineering our check-related activities through four key projects:

• The Enterprise-Wide Adjustments (EWA) project will move check adjustments to a streamlined common platform with shared data across Federal Reserve Banks, eventually linking to a national image archive. We have already completed more than half of the EWA project implementations across the System.

• The Check Standardization project will install a standard, centrally managed item-processing platform at the Federal Reserve's 45 check processing sites.

• The Image Services System project will establish a standard check-imaging platform with a national image archive and enhanced research and retrieval capabilities.

• The Check Electronic Access and Delivery project will convert existing FedLine/DOS check services to FedLine for the Web and will eventually offer enhanced online check services.

How Will I Be Affected?
Because of the magnitude of the Check Modernization initiative, and to ensure continued service quality to all of our customers, the Federal Reserve has carefully planned a phased implementation of these four projects. We have developed a unique implementation schedule for each Reserve office, with the entire initiative scheduled for completion by the end of 2003. We will keep you apprised of further details as conversion activities draw nearer here in the Eighth District.

Although we expect these implementations to have a minimal impact on your current operations, please rest assured that we will provide you with ample notice of the cutover schedule and inform you of any operational changes that require preparation on the part of your financial institution. We will also notify you of any necessary testing and training, and will coordinate these activities with you.

In the meantime, should you have any questions about Check Modernization, please contact your local account executive.