Overview of our Remote Deposit Capture system, inclearings module, desktop lockbox and new Mobile Deposit app. Featuring industry solutions for Non-profits, Community Banks & Credit Unions, Money Service Businesses, Online Merchants, Grocery & Retailers, Municipalities & Public Works, Collection Agencies, Education, Political Campaigns and Property Management.

1. Sales Overview

2. What is DirectFED?
› Skyline’s DirectFED is a revolutionary remote deposit capture system designed to
increase profit and reduce operating capital faster than any financial institution
› Reduce float time, bank fees and back-office handling expenses
› Increase efficiency and increase PROFIT
› Patented software and scanning system changed the landscape for check processing
and lockbox services.
› Ensures 100% complete, accurate check images before they are uploaded to the
Internet
› Easy-to-use desktop software
› Vastly reduces check data corrections
› Software application, rather than web-based, allows for faster deposits without the
burden of bandwidth issues

3. Unique Benefits
› Skyline's DirectFED Remote Deposit Capture:
› Streamlines operations
› Reduces bank float time to just 12 hours
› Reduces bank deposit fees
› Increases corporate cash flow
› Allows companies to run on lean working capital like just-in-time inventory
› “Bank agnostic” processing – Merchants can keep their existing bank relationships

4. How This Works
› DirectFED scans and captures the check image using a scanning device (Panini
models and more than 70 other leading scanner systems)
› Creates an electronic “cash letter” in the standard X9.37 format (Federal
Reserve Bank standard)
› Transmits this information to the Federal Reserve based on a previously
established schedule with the client
› Additionally, DirectFED will compile any check images into the proper file
formats and send them to specified destinations on behalf of the bank.
› Most Check 21 systems charge additional fees for these services
› Some examples include (on-us items – sent back to the bank or CU; Enterprise
imaging service, etc.)

5. Check Images Flow to the Bank
or Fed Through DirectFED Servers

6. Overview of DirectFED Check Clearing Process

7. DirectFED Desktop System
› PC-based software
› Works with many scanners
› Simple installation
› Very easy to understand
and use
› Powerful capabilities for
more sophisticated users
› Includes secure remote
desktop software to
provide ‘hands on’
customer support

8. Compatible Scanners
› Epson, RDM, Panini, Kodak, NCR, and more
› 70 compatible units
Industry Leading Panini Scanners

9. DirectFED Deposit™ Main Interface
› Simple interface
› Clear workflow
› Four stages
1. Scan new batch
2. Resume scan
3. Verify & Correct
4. Upload for Deposit
› Status of pending
batches

10. DirectFED Deposit™ – Scan Check Batch
› Simple interface to
scanner
› Captures front &
back + MICR
› Includes coupon
capture
› Images stored
locally in secure
database

11. DirectFED Deposit™ – Verify & Correct
› Finalize check data
in a simple
interface
› Rely on patented
confidence level
intelligence

12. DirectFED Deposit™ – Verify & Correct
› Verify coupons at
the same time as
checks

13. DirectFED Deposit™ – Desktop Lockbox
› Process up to six
items as a unit
› Organized into
“envelopes” for your
records

14. DirectFED Deposit™ – Inclearings Module
› Process image
inclearings and return
files from the Federal
Reserve
› Manage your own
image archive
› Generate image
return cash letter to
the Federal Reserve
on items in the
archive

15. DirectFED Deposit™ – Reporting
› Review Check Image
Archive and generate
reports
› Print reports or save
as PDFs
› Generate reports
through your
accounting system

16. DirectFED Mobile™
Gold Standard for Security, Scalability,
TCO and Accuracy
› Available for iPhone®, Blackberry®
and Windows Mobile® smartphones

17. Mobile Deposit Expands Market Opportunities
› Simplifies people’s lives
› Limits the need to travel to a bank or ATM machine
simply to make a deposit
39% small business owners
nd mobile RDC “desirable”
-Javelin Research
› Drives down banking cost
› Reduces the need for teller and ATM interaction
› Proven real-time technology identifies bad images immediately, allowing instant re-
taking and re-submission of pictures. Only good images allowed into the existing
check processing infrastructure
› Augments existing mobile banking and merchant capture platforms
› Highly secure
› Multiple layers of security meets the stringent requirements of financial institutions
› Easily adapted to the unique needs of different institutions

18. Consumer Adoption of Mobile RDC Will Create
a Strategic Opportunity for Early Deployers
100m
mobile banking users
› Fueled by mobile’s convenience and accessibility,
consumers’ likelihood to use mobile RDC is high, especially
among current users of mobile banking
anticipated by 2014
-Javelin Research
› Consumer adoption of mobile RDC is forecast to be strong with
23%adoption
consumer
overall adoption reaching 23% – higher adoption is anticipated in expected overall
younger consumer segments -Mercatus
› Over 7 billion consumer-deposited checks are available for migration to
mobile RDC. The resulting impact on consumer check volume deposited through
traditional bank branches would be significant
› Check volume migration to mobile RDC should exceed 1.5 billion

19. DirectFED Mobile™ – How It Works

20. Capture » Clean » Extract Data
Image Issues
Check 21 Image Created
MOBILE MICR = 122232542:1341:213529 Data Extracted &
AMOUNT = $30.00 Money Deposited

21. It’s very hard to do Mobile Deposit right...
Consider the Challenges
› Arbitrary location and orientation of
documents
› 3D-distortions (projective, skew, warp)
› Unknown document size
› Unknown color(s) of document and
background
› Image dimensions
› Poor lighting conditions
› Shadows, etc.

22. DirectFED Mobile™ – Security & Compliance
› Mobile phone 2-Factor Strong Authentication
› Ability to encrypt data and check images on the phone
› Server controls for deleting check images from phones
› Leverages existing RDC infrastructure and business rules
› DirectFED’s servers use SSL processing, 1024-bit Verisign digital encryption
› Skyline’s DirectFED is SAS70 Level 1 compliant
› Check 21 Compliance
› SSL over the air

23. What makes DirectFED Mobile™
the Gold Standard?
› Secure and Industry Compliant: Multiple layers of security meets the needs of every
financial institution
› Phone and Transaction security
› Authentication and Duplicate deletion
› Check 21 compliance
› Scalable: Multiple integration options available
› Scalable architecture and Web Services for easy integration with check processing
systems (i.e. RDC and Home Deposit)
› Integrates with SSO and back-end business rules
› Integrates with Mobile Banking Apps
› User Friendly and Accurate: An intuitive, fast and dependable interface supported
under multiple Smartphone platforms
› Achieved by the use of Mitek’s advanced Mobile Imaging Analytics
› Provides meaningful real time feedback to user
› Maintains lowest false rejects and false accepts resulting in
optimal user experience

24. Industry Solutions
› Non-Profits
› Community Banks & Credit Unions
› Money Service Businesses
› Online Merchants
› Grocery and Other Retailers
› Municipalities and Public Works
› Collection Agencies
› Education
› Political Campaigns
› Property Management

25. Non-Profits
› Bank deposit window is now open 24/7
› Cash will be deposited within 12 hours!
› Check depository and donor tax record in a single scan
› Can send an electronic receipt to donors
› Retains donor records to server for extensive reporting and archiving
› Better control of donations and faster settlement
› Reduces lockbox expenses and need for back office personnel
› Donors get their receipt automatically for tax purposes
› The scanner is FREE!
› Do all check processing in-house!

26. Community Banks and Credit Unions
› Community Banks and Credit Unions can compete with larger banks
› Become image-enabled without any capital investment
› Protect current customers from competitors
› Gain new clients without building new branches – eliminates geographic
boundaries
› Give customers desktop lockboxes and grow and retain customer base
› We can be a stand-alone solution
› Or work with corporate credit unions!
› Less overhead equals more production

27. Money Service Businesses
› Back-office image-enabled check deposit system that eliminates bank fees and
courier charges
› MSB’s create cash from checks within 12 hours
› Provides instant archiving for better bookkeeping
› Provides and supports OFAC compliance
› Opportunity to increase revenue with faster check clearing
› Personnel can be trained within 30 minutes
› Bank discontinuance is a thing of the past with Skyline's DirectFED Remote
Deposit Capture!

28. Online Merchants & Retailers
› Eliminate painful processing fees with DirectFED’s CheckAlt solution!
› Easy email invoicing system
› Fastest e-check processing available
› 24 to 48 hours
› ACH Payment volume is increasing!
› Consistent 20% rise every year since 2004
› Access to 40 million new clients
› For those who do not carry or choose not to carry major credit/debit cards

29. Grocery and Retail
› Bank deposit window is now open 24/7. Eliminates runs or couriers to the bank to make
deposits
› Cash will be deposited within 12 hours!
› Back-office check processing model – top consumer convenience!
› Avoids the confusion of “consumer as keeper” check conversion
› Handles any type of check drawn on US banks (money orders, credit line checks, etc.)
› Make multiple deposits throughout the day
› Reduce returns with National Check Network (NCN) check verification
› Offers centralized view of deposits from multiple locations
› Compatible with more than 70 scanners!
› Works with any bank – no requirement to open new account
› Easy to train staff – just 30 minutes!

30. Municipalities and Public Works
› Use for both back-office and counter-top check processing
› Cash will be deposited within 12 hours!
› Eliminates runs or couriers to the bank to make deposits
› Handles any type of check drawn on US banks (money orders, credit line checks, etc.)
› Reduce returns with National Check Network (NCN) check verification
› Payment coupons that accompany checks can also be scanned and archived. All fields
of typed and handwritten data can be captured by Optical Character Recognition; the
software can also be easily and quickly customized for bar code capture
› Offers centralized view of deposits from multiple locations
› Scales to fit the size of your operation
› Compatible with more than 70 scanners!
› Works with any bank – no requirement to open new account
› Easy to train staff – just 30 minutes!

31. Collection Agencies
› Multiple accounts supported, allowing one PC to process for all of your accounts
› Cash will be deposited within 12 hours!
› Payment coupons that accompany checks can also be scanned and archived. All fields
of typed and handwritten data can be captured by Optical Character Recognition; the
software can also be easily and quickly customized for bar code capture
› All data from our processing solution can be incorporated into your accounting system
or management software
› Handles any type of check drawn on US banks (money orders, credit line checks, etc.)
› Reduce returns with National Check Network (NCN) check verification
› Offers centralized view of deposits from multiple locations
› Scales to fit the size of your operation
› Compatible with more than 70 scanners!
› Works with any bank – no requirement to open new account

32. Education
› Bank deposit window is now open 24/7. Eliminates runs or couriers to the bank to make
deposits
› Cash will be deposited within 12 hours!
› Payment coupons that accompany checks can also be scanned and archived. All fields
of typed and handwritten data can be captured by Optical Character Recognition; the
software can also be easily and quickly customized for bar code capture
› All data from our processing solution can be incorporated into your accounting system
or management software
› Offers centralized view of deposits from multiple locations. Great for school boards who
need to place scanners at their schools, or for universities who accept donations and
check payments at multiple offices and bookstores
› Scales to fit the size of your operation
› Compatible with more than 70 scanners!
› Works with any bank – no requirement to open new account
› Easy to train staff – just 30 minutes!

33. Political Campaigns
› Our OCR technology eliminates data entry of contributor information, recording the
name, address and other contact information shown on the check, giving
volunteers more time to make calls and canvas neighborhoods.
› All data from our processing solution can be uploaded to your accounting system
and to state election commissions reporting systems.
› Cash will be deposited within 12 hours!
› Better control of donations and faster settlement
› Benefit from our monthly licensing structure that includes hardware, software and
training for the length of your campaign.
› Offers centralized view of deposits from multiple locations
› Scales to fit the size of your operation
› Compatible with more than 70 scanners!
› Works with any bank – no requirement to open new account

34. Property Management
› Bank deposit window is now open 24/7. Eliminates runs or couriers to the bank to make
deposits
› Cash will be deposited within 12 hours!
› Our desktop lockbox then provides a check depository and tenant payment record-- no
need to photocopy your checks!
› All data from our processing solution can be incorporated into your accounting system
or management software
› A drop-down menu lets you choose the appropriate account for the appropriate
property so you can process all payments from one PC.
› Offers centralized view of deposits from multiple locations.
› Scales to fit the size of your operation
› Compatible with more than 70 scanners!
› Works with any bank – no requirement to open new account
› Easy to train staff – just 30 minutes!

35. Clients
Institutions › Aspire FCU
› Bellco FCU
› American Stock Transfer
› BCT CU
› Ace Check Cashing
› City CU
› Cathedral Corp › Cross Valley FCU
› Hajoca Corporation › FAA Eastern Region FCU
› Onyx Stock Transfer › First National Bank of the South
› Pay Your Rent › Holyoke Community FCU
› Vintage Filings › Jersey Trades FCU
› Lower East Side Peoples FCU
› Vcorp Services
› New Brunswick Postal FCU
› North Dade Dev FCU
Government › NY Metro Postal FCU
› City of Fountain Valley, CA › Right Choice CU
› Rutgers University Student & Alumni CU
Banks & Financial Institutions › UPenn Students FCU
› AltaVista CU
› Ascension CU

36. For more information:
www.directfed.com
info@directfed.com
1.866.971.2700
Follow us on Twitter:
twitter.com/directfed
This presentation is made available online at:
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