Working with nearly a dozen banks, Fiserv Inc. is developing a cash management option for its Comprehensive Banking System division.

The new option should be ready for testing by the first quarter of 1994, according to those involved with the development project.

The Comprehensive Banking System is an integrated banking software package designed for the AS/400 line of midrange computers from International Business Machines Corp.

In designing the new software, Fiserv enlisted the aid of a number of the system's current users to make suggestions as to what features the product should incorporate, as well as assist in creating its look and feel.

ufbr A Variety of Functions

The new software "has everything you could possibly ask for in a cash management program," said Tony Dillion, deposit delivery services manager for Old National Bank, the $1.1 billion-asset lead bank of Old National Bankshares, a $3.9 billion-asset holding company based in Evansville, Ind.

According to Mr. Dillion, those features currently include balance reporting, funds transfer, account reconciliation, stop payments, batch processing for automated clearing house transactions, and automated report generation.

|Some Cosmetic Advantages'

There are actually two components to the Comprehensive Banking System cash management software - customer software that runs on personal computers using Microsoft Windows, along with the portion that runs on the AS/400.

Because the client portion of system runs on a Windows-based PC, "it has some cosmetic advantages over what's currently out there," Mr. Dillion explained.

Mr. Dillion said Old National became involved with the development program for two reasons.

Has Cash Management Product

"Fiserv is working with us because we already have a cash management business and a PC-based product that we can sell," he said.

Old National currently offers a cash management product developed by Harbinger EDI Services, Atlanta.

"Over the long term, we would like to move to a solution that involves the AS/400 as well a Windows-based product for our corporate cash management offering," Mr. Dillion said.

"From there, we can design and market our product."

May Market Both Systems

However, he also said Old National might continue to offer the Harbinger product to its existing client base, while marketing the Fiserv product to prospective customers.

Since acquiring Comprehensive Banking System in its 1991 purchase of Citicorp Information Resources, Fiserv has managed to breathe some new life into the software.

In addition to the development of cash management software, more Powerful AS/400 models have enabled the company to make software sales to regional banks that previously may not have been candidates for a midrange system.

Besides Old National, other regional banks using the software include First Banks Inc., Creve Coeur, Mo., with more than $2 billion of assets, and Centerbank, Waterbury, Conn., which has $2.9 billion of assets.

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