Annual Reports / Newsletters
Business Recovery Site
Learning & Development
|| Press Releases
FOR IMMEDIATE RELEASE
Bankers' Bank Northeast and Fidelity National Information Services Provide Image Cash Letter Transmittal for New England Community Banks
Client Banks Benefit from Volume Cost Savings While Avoiding the Loss of Funds Availability Due to Missed Federal Reserve Deadlines
Jacksonville , FL
March 6, 2006
Fidelity National Information Services, Inc. (NYSE:FIS) and Bankers' Bank Northeast announced today that they will convert paper checks into images for client banks and submit image cash letters to the Federal Reserve Bank of Boston.
The decision is a result of the Federal Reserve's relocation of its Boston, MA operations to its Windsor Locks, CT center as part of an ongoing consolidation effort. For banks in eastern New England, the greater distance to Windsor Locks necessitates establishing earlier cutoff times to meet Federal Reserve deadlines for receipt of cash letters. Because missed deadlines result in diminished funds availability and therefore the loss of investment income, Bankers' Bank Northeast ("BBN") sought a way to help its client banks overcome the new obstacle.
"Bankers' banks were established to serve the needs of community banks that wanted to offer their customers advanced financial services," said Peter J. Sposito, president and chief executive officer of Bankers' Bank Northeast. "We fulfill a role similar to correspondent banks, but we don't compete with the institutions we serve. We are a satisfied user of FIS' BancLineT core processing system, and we knew they excel in the area of imaging, so we turned to them for a solution to help our clients. Of course, we have alliance agreements with the other major check processors in New England, and we leave it to our client banks to choose their provider, but we are pleased to be able to offer FIS' image cash letter services as an additional resource."
Under the new arrangement, BBN's clients will courier their paper items to FIS' processing centers in Norwood or Chelmsford, MA where the imaging will take place. Data will be sent to BBN for settlement of the clients' deposits, and FIS will then transmit image cash letters to the Federal Reserve and/or to other image enabled endpoints. Because BBN will group multiple clients together, the banks will benefit from cost savings based on volume as well as strong funds availability.
"FIS provides not only the necessary technologies, but also a dedicated account team with the strong leadership we require of a strategic partner," said Sposito. "We look forward to working with FIS and our other item processing partners to help community banks manage the rapidly evolving check processing environment."
"As the Federal Reserve continues to consolidate its operations, the pressure and monetary incentive to move from paper to images is intensifying," said Randy Fluitt, executive vice president for FIS' Integrated Financial Solutions division. "However, many small community banks are not ready to make the transition. Our relationship with Bankers' Bank Northeast will make it possible for these institutions to not only overcome the immediate challenges, but also to position themselves for all the advantages promised by the realization of image exchange."
About Fidelity National Information Services, Inc. Fidelity National Information Services, Inc. (NYSE:FIS) is a leading provider of core processing for financial institutions; card issuer and transaction processing services; mortgage loan processing and mortgage-related information products; and outsourcing services to financial institutions, retailers, mortgage lenders and real estate professionals. FIS has processing and technology relationships with 35 of the top 50 global banks, including nine of the top ten. Nearly 50 percent of all U.S. residential mortgages are processed using FIS software. Headquartered in Jacksonville, Florida, FIS maintains a strong global presence, serving over 7,800 financial institutions and over 100,000 retailers in more than 60 countries worldwide. For more information on Fidelity National Information Services, please visit www.fidelityinfoservices.com. FIS is a majority-owned subsidiary of Fidelity National Financial, Inc. (NYSE:FNF), number 261 on the Fortune 500. More information about FNF can be found at www.fnf.com. About Bankers' Bank Northeast The Bankers' Bank Northeast is a wholesale correspondent bank based in Glastonbury, CT and serves over 150 community banks throughout New England and New York. It is a state-chartered institution that is FDIC insured and a member of the Federal Reserve System and the Federal Home Loan Bank of Boston. Nationally, there are 20 bankers' banks that work with more than 6,000 community banks in 48 states. This press release contains statements related to future events and expectations and, as such, constitutes forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be different from those expressed or implied above. The Company expressly disclaims any duty to update or revise forward-looking statements. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to, the effect of governmental regulations, the economy, competition and other risks detailed from time to time in the "Management's Discussion and Analysis" section of the Company's Form 10-K and other reports and filings with the Securities and Exchange Commission. SOURCE: Fidelity National Information Services, Inc.
CONTACT: Mary Waggoner, Sr. Vice President, Investor Relations, 904.854.3282, firstname.lastname@example.org; Michelle Kersch, Sr. Vice President, Marketing and Corporate Communications, 904.854.5043, email@example.com.