Small Pa. bank to use Unisys-ITI imaging system.

To improve the productivity of its check-archiving department and reduce costs, New Bethlehem Bank, a $120 million-asset community bank based in New Bethlehem, Pa. is deploying imaging and optical-disk technology.

The bank will use a personal computer-based system -- jointly offered by Unisys Corp., Blue Bell, Pa., and Information Technology Inc., Lincoln, Neb., -- that will allow it to send image check statements to its customers.

The bank will also provide a binder to allow customers to store an entire year's worth of check images.

"This new service will greatly enhance our customers' recordkeeping and tax preparation at no additional costs to them," said C. Edward Dunmire, president and chief executive at New Bethlehem.

The bank plans to have the system up by the end of October.

Optical archival of checks will replace micro film, the bank's current storage medium. Once checks are imaged and archived to optical disk, their images can be viewed on a PC, printed on a laser printer, or faxed.

According to James Kifer, assistant vice president at New Bethlehem, bank officials expect a four-year payback on the system.

"Most of the payback will be in labor and postage," he said, adding that bank officials anticipate savings as high as 40% on postage. Instead of sending individual checks, the bank will be sending 12 to 24 pictures of checks on one or two letter-size pages, he said. With the new system, the bank may also be able to cut back on the number of part-time and fulltime employees in its check-filing department, said Mr. Kifer. The bank plans to have two PC research stations at its main site in New Bethlehem, said Mr. Kifer. The system consists of application software developed by ITI, a supplier of banking applications to the financial industry, and personal computers and an image transport system from Unisys.

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