National City to use Fiserv system in Minneapolis.

National City Bank in Minneapolis has announced that it will install the Fiserv Inc. Comprehensive Banking System.

The bank has $458 million of assets and operates in three locations. The move to the Fiserv system will enable National City to "right-size" from an International Business Machines Corp. mainframe to an AS/400-based midrange system.

According to Thomas J. Freed, senior vice president and chief financial officer at National City, moving to the AS/400 is part of the bank's long-term information strategy.

PCs Being Rolled Out

The plan also includes setting up a bankwide PC network that will take advantage of the system's relational data base functionality.

The PC network is currently being rolled out at the bank. Mr. Freed said that the system will be fully operational by next July.

"The Fiserv CBS product and the PC network will give us the ability to integrate the way we use information," he said.

"Moving to Fiserv also signals the fact that we view information as a strategic cornerstone to the way we do business."

The Fiserv system is composed of seven integrated modules covering a range of basic commercial banking activities.

Added Uses

These modules share common data, enabling a bank to create more complete customer profiles via the relational data base.

And The relational data base does more than simply consolidate account activity.

"It can tell a bank about relationships that one customer has with another," said Robin Smith, Fiserv senior vice president. "For example, if you are a member of the board of a company that's also a customer of the bank, the system makes note of that."

The data base also provides information on individuals who aren't customers, but who are important to the bank.

"A perfect example is the comptroller of a company that is a corporate customer," said Ms. Smith.

"The comptroller may not do his or her personal banking business at the bank, but let's say the individual wanted to come in and cash a check: The system would indicate the comptroller's relationship to the bank."

Former System

This relational data base feature was particularly attractive to National City Bank because its previous system didn't provide a fully integrated customer information file.

"Like many banks, we place a high premium on customer satisfaction," Mr. Freed said.

"With the new system, we expect to put information into the hands of the people who are closest to the customer."

Based in Milwaukee, Fiserv provides data processing systems and software to banks throughout the world.

Ms. Sullivan is a freelance writer based in New York.

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