Astoria Federal Savings and Loan Association of Lake Success, N.Y., will outsource its retail banking data processing operations to M&I Data Services Inc.
M&I will also provide check processing and statement rendering services through its New York data center. Additionally, Astoria Federal will use M&I's branch automation products and automatic teller machine support.
Conversion is expected to be completed by the end of June, 1994.
The bank said it decided to outsource its operations to reduce system, equipment, facility, compensation, and other related expenses as it prepared for future growth through mergers or acquisitions.
Astoria Federal Savings is a wholly owned subsidiary of Astoria Financial Corp. Astoria Federal specializes in single-family residential mortgage lending.