M&I Data Services Inc. has landed one of its most extensive outsourcing agreements-a five-year deal with Synovus Financial Corp.
M&I Data, a division of Milwaukee-based Marshall & Ilsley Corp., will handle Synovus' deposit, loan, and general ledger systems. It also will provide technical consulting services.
As part of the contract, M&I Data will help develop systems for data warehousing, electronic funds transfer, and automated teller machine and cash management services. Financial terms of the deal were not disclosed.
M. Arthur Gillis, an independent consultant based in Dallas, called the deal "a marriage made in heaven." It lets M&I showcase its ability to serve larger clients, while fulfilling the needs of Synovus.
Synovus, based in Columbus, Ga., has $9.8 billion of assets and 34 banks in Georgia, Alabama, Florida, and South Carolina. It chose to outsource after realizing how quickly its technology needs were changing, said Synovus president Stephen L. Burts Jr.
"We felt the technology needs of our company are such that trying to provide those internally was probably not the best use of those resources," Mr. Burts said. "M&I already provides the level of technology that we need today, and they will continue to provide a higher level of technology going forward."
The Synovus deal is an example of how larger banks are warming to outsourcing. It also exemplifies a trend in which processors usually associated with the community banking market are targeting larger institutions.
M&I Data has signed several larger bank deals in the past year, including one with $5 billion-asset Citizens Bank in Flint, Mich., and one with $19 billion-asset Northern Trust Co. in Chicago, said Patrick Foy, president of M&I Data's outsourcing business group.
In a separate announcement, Marshall & Ilsley said Joseph L. Delgadillo has been named chief executive officer of M&I Data.
Mr. Delgadillo, 45, succeeded Dennis J. Kuester, who remains chairman of M&I Data's board. Mr. Kuester also retains his positions as president of Marshall & Ilsley and its flagship subsidiary, M&I Bank.
Mr. Delgadillo joined M&I Data in 1986 as vice president of marketing. Two years later, he was promoted to vice president/group executive responsible for the bank processing business unit. In 1989, he became senior vice president, responsible for managing several software business units.
He has been president and chief operating officer of M&I Data since 1993.
