Huntington Bancshares is introducing a remittance and payment-processing service for midsize and small institutions.
Subscribers to the service can get Huntington to receive electronic remittance files on their behalf and forward the information to their customers, either through computer data transmissions or on paper statements.
The service is being promoted as a service bureau for financial electronic data interchange, since the remittance data would describe payments forwarded through the automated clearing house network.
"We're giving smaller banks the ability to do financial EDI without having to make a large investment," said Bob Sega, a vice president at the Columbus, Ohio, bank's cash management unit. Mr. Sega said that banks that don't use service bureaus typically have to spend $50,000 on their own software and computers to receive electronic remittance statements for customers.
He added that only between 35 and 50 banks offer financial EDI. More banks need to develop these capabilities so the banking industry can become more competitive in the business, he said.