Article Abstract:
First Fidelity Corp has signed a 10-year, $450 million outsourcing deal with Electronic Data Systems Inc to consolidate the company's software and data center operations. The deal is the largest outsourcing deal by a US commercial bank. First Fidelity, which has 500 offices and $29.8 billion in assets, expects to trim $50 million a year in expenses from the outsourcing deal. First Fidelity has grown in the 1980s through various mergers. Each merger presented a slightly different back office and services operation to the firm and has made integration a difficult problem. First Fidelity plans to consolidate about 250 of its software systems into about 60 systems by Feb 1992. The outsourcing deal is one of the bank's leading cost-cutting measures, which is designed to reduce annual operating expenses by $115 million.
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Article Abstract:
Citicorp is launching a new home-banking terminal, called the Enhanced Telephone, that the company hopes will revive interest in the technology. Many bankers thought the microcomputer boom would make home banking via computer services, such as Prodigy, extremely popular, but the number of users has stalled at about 100,000 nationwide. Citicorp is hoping the new device, which looks like an enlarged telephone with a small cathode ray tube display built in, will make the service more popular. The Enhanced Telephone will be leased to subscribers for a $49.95 installation charge and a $9.95 monthly service fee. With the device, users can pay bills, transfer funds, get a loan, review account journals and, in the future, get price quotes and trade securities.
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Philadelphia-based CoreStates Financial Corp is introducing a new generation of ATMs that will be capable of cashing most checks instantly by scanning to identify the bank of origin, the account number and the check number. The new machines, which around $43,000 each, are equipped with more microchips for increasing scanning ability and will read information of the block numbers printed with magnetic ink in the lower left corner of each check. Users will need to pre-register their payroll, government or dividend checks with human tellers, who will then input the information into the ATM network. Cashing of nonrecurring checks will also be possible within a bank's pre-defined limit for the customer.
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