Nexity Bank plans to expand its correspondent banking business by offering outsourced core processing to the community banks that use its other services.
David E. Long, Nexity's president, said the bank, the primary operating unit of Nexity Financial Corp. of Birmingham, Ala., would refer its clients to the Information Technology Inc. unit of Fiserv Inc., and ITI would refer customers to Nexity for services such as loan participations, fixed-income investments, and cash management.
The $853 million-asset Nexity runs ITI's core system in-house to process deposits and loans.
In announcing the marketing arrangement last week, Mr. Long said he expected it could take Nexity six to nine months to win the first customers for the service. "We will be marketing these services to our community banks" starting immediately, he said.
Nexity has 209 correspondents mostly in the Southeast, Mr. Long said.
