Chase Manhattan Corp., nearing the end of the second phase of its merger consolidation, hopes to complete the integration of its general ledger system with that of the former Chemical Banking Corp. by July 15.
"It looks like a makeable date," said Peter Fraedrich, financial director for general accounting operations at Chase.
Comtex Information Systems Inc., based in New York, is to coordinate the work of thousands of bank employees participating in the accounting consolidation, which must be completed within 48 hours beginning July 12. Comtex assisted Chemical in the Manufacturers Hanover merger several years ago.
Experts said banks of all sizes are increasingly looking to technology vendors for help with merger-related systems projects.
The prompt and smooth combining of systems is a prerequisite for achieving many merger savings, and using outside firms often speeds the process.
Currently, Chase's accounting is done on two parallel systems. These will be fed into a third system, which will become the bank's lone general ledger.
The July project will convert the general ledger, federal reconciliation, funds transfer, and federal funds systems.
In addition to U.S. operations, 19 foreign subsidiaries of Chase and Chemical are to combine those functions in July.
Some elements of the general ledger merger will be different from Chemical's merger with Hanover.
For example, in the earlier merger, Chemical used a "best of breed" approach, comparing departmental systems from both banks side-by-side and choosing the better of the two.
By contrast, Chase and Chemical have organized their merger around "suites" of business lines and are thinking about how systems choices affect multiple departments. This approach gives greater value to the way departments work together than to the functionality of individual systems.
"It makes everything move faster because you have to change fewer things, and it is less contentious," said Jeffrey Short, executive vice president of Comtex.
Improved internal communications also should speed the process, according to Mr. Fraedrich. "We are bringing people in earlier and getting them involved more often."
Once general ledger and other functions are merged, Chase executives plan to turn to merging retail systems and closing redundant branches.
When this is done in September, Chase customers will be able to do unrestricted business at any bank branch.
