BROOKFIELD, Wis. Fiserv Inc. is buying the item processing business of the Federal Home Loan Bank of Pittsburgh.
Escalating costs .. and the challenge of aggressive pricing were behind the deal, the bank said last week in a message to members. Our analysis has shown that the business is becoming increasingly concentrated in the hands of a few national providers with large economies of scale. The sale is expected to close at the end of the month. The price was not disclosed.
The bank provides check and document services to about 120 of the roughly 360 banks, thrifts, credit unions, and insurance companies it serves in Delaware, Pennsylvania, and West Virginia. Fiserv will take over its item processing centers in Pittsburgh and in Conshohocken, outside Philadelphia, which together process about 120 million items annually.
The sale will boost Fiservs processing volume to more than 4.6 billion items annually at facilities across North America.