ADP, Advantage to provide treasury services jointly.

ADP Financial Services and Advantage Systems Inc. have signed an agreement to jointly provide treasury management software and services to financial institutions.

Advantage Systems is a software company based in Waltham, Mass. ADP Financial, based in Ann Arbor, Mich., offers treasury management outsourcing services to banks.

With the agreement, the companies will jointly market and support data collection, multibank exchange of balance information, networking services, and Forte, a cash management software developed by Advantage.

According to Andrew Vasher, an ADP executive, the alliance was created to serve banks with large cash management operations. "The alliance is meant to help banks reap the benefits of running core processing in-house while off-loading nonstrategic tasks such as [nonautomated] data collection to a third party," he said.

PNC Banker Sees Arrangement as Adding Flexibility

Since the announcements last month, clients from both ADP and Advantage are examining the benefits of the alliance.

"We're in the [cash management] business that is committed to and driven by customer service," said Dan Pavlick, vice president of electronic products at PNC Bank in Pittsburgh. "When two vendors like ADP and Alliance join together, new value is created and a bank's flexibility is enhanced."

PNC uses Advantage products for deposit reporting and voice services. Mr. Pavlick said his staff is evaluating what services ADP might offer the bank. He anticipated that the alliance will serve institutions seeking a disaster recovery partner. "It looks like the infrastructure will be in place for ADP and Advantage to offer real-time disaster recovery support."

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

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER