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Commercial banks

Fiserv and Chase Manhattan Bank Announce Strategic Alliance in Check Processing

Strategic Insights

— 1 min read

Fiserv, Inc., a leading provider of financial data processing systems, has announced a significant strategic alliance with The Chase Manhattan Bank, N.A. to manage the bank's New York-based check processing and check imaging operations. The agreement, set to go into effect on March 1, 1995, is expected to generate approximately $40 million in revenue per year for Fiserv and will provide substantial benefits for Chase over the initial 12-year term.

Key Takeaways:

  • The agreement will align Fiserv's people, item processing resources, and image integration expertise with Chase's business strategies, establishing a long-term strategic alliance between the two companies.
  • Fiserv will convert Chase sites to a common item processing and image proof-of-deposit platform, using its Imagebanc(TM) products from the recently acquired Image Integration Technology business unit.
  • The alliance will enable Chase to accelerate its offerings of new image-based products and services to its customers, gain operational savings, and capitalize on its product innovation and customer service strengths.
  • Fiserv has a proven reputation in the industry for taking care of its people, who in turn take good care of their clients, making it a good fit with Chase's dedication to enhancing relationships with its employees and customers.
  • The scope of the services that Fiserv will provide Chase includes account reconciliation, check processing and adjustments, item and image-related data processing, encoding of items, advising, returns, and statement rendering.
  • Fiserv will assume management of Chase's check processing operations in Brooklyn, Long Island, Rochester, and Syracuse, N.Y., and will offer full employment to those Chase employees currently in the operations areas of these locations.

Statistics:

  • The agreement is expected to generate approximately $40 million in revenue per year for Fiserv.
  • An average of 58 million items will be passed through the new Fiserv operations in New York, New York, enhancing Fiserv's position in the industry as the leading provider of item processing services to U.S. banking and savings institutions.

Sources:

  • Business Wire, Feb. 22, 1995.
  • Fiserv, Inc. press release, Feb. 22, 1995.
  • The Chase Manhattan Bank, N.A. press release, Feb. 22, 1995.

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