The check processing unit of CoreStates Financial Corp. has taken a big step toward establishing its independence, choosing a new processing software to replace its holding-company-related system.
Transys, the nine-month-old Philadelphia check processor, has slowly been edging out from under the shadow of its parent, in order to create its own identity as a check-clearing house to serve CoreStates as well as its competitors. To help meet that objective, Transys has set out to develop its own systems and operations, separate from the holding company.
The check processor will install a new return item processing system -- developed by the Earnings Performance Group Inc. -- to take the place of the "older, more limited CoreStates system," according to Kevin Erskine, the executive vice president for systems and technology at Transys.
"Transys is going to become a third-party processor," Mr. Erskine said. "As we start to separate ourselves from CoreStates, we move in that direction."
Future Imaging Platform Option
The return item processing business represents a small fraction of Transys' overall operation -- the company handles an average of 20,000 return items per night, as opposed to between five and eight million checks. But it is the check processor's first piece in building a new, end-to-end image-based system.
The new non-image-based system will be installed by October, Mr. Erskine said. The processing company chose the EPG system for its flexibility and the future imaging platform option, which Transys plans to upgrade four months after the initial systems are installed. The return item processing system, called RIPS, will run on Transys' International Business Machines Corp. mainframe.
Earnings Performance Group, a 10-year-old consulting company that specializes in back-office operations at banks and thrifts, has been developing software for the past four years. In addition to RIPS, the firm offers an automated research and settlement product and a customer service tracking system.