NationsBank has hired Actuarial Computer Technology Inc. to manage the systems and operations functions of its record-keeping services business.
Under the agreement, Actuarial Computer, a Rockville, Md.-based unit of the Shareholder Services Group, will manage the bank's record-keeping centers in Atlanta, Baltimore, Charlotte, N.C., and Richmond, Va.
The centers, which are part of the bank's trust and investment management group, support such services as 401(k) plans, profit sharing, and money purchase plans.
The move is in keeping with NationsBank's strategy of selective outsourcing.
As a result of the deal, about 140 NationsBank employees will become employees of Actuarial Computer. The value of the contract was not disclosed.
Charlotte-based NationsBank, which has built up a significant trust and investment management business totaling over 1,000 employee-benefit plans, with nearly 200,000 participant accounts, expects to have most of the accounts converted to the new system by the end of 1996.
The move to hire Shareholder Services Group, a subsidiary of Boston- based First Data Corp., came as a result of the bank's need to upgrade existing record-keeping systems.
"The record-keeping services business is a competitive business and one that increasingly requires significant scale and technology to meet client demands," said John W. Munce, division executive for Investment and Retirement Services of NationsBank trust and investment management.
Michael Mertz, division executive who directs record-keeping services at the $184 billion-asset bank, says the new arrangement will allow the bank to focus on customer relationships and distribution.
He said the arrangement will cost more than if the bank had upgraded in- house. But he added that the new system would improve service by enabling the bank to produce statements and process new funds and loans more efficiently.
The bank will also employ Actuarial Computer's state-of-the-art trading system.
Mr. Mertz said the bank was committed to the record-keeping services business because it's a good way to generate assets under management by offering ancillary services.
He said the bank will continue to focus more of its resources on asset and investment management and retirement services. These are "areas where customer demand is rising dramatically and we anticipate steep growth in volume and profitability," he declared.
