Seeking to expand its bank systems integration practice into the burgeoning field of retail delivery technology, Logica Inc. announced last week that it has formed a unit to specifically focus on the area.

Better known for its work in the wholesale side of banking, Logica Inc. - the U.S. subsidiary of London-based Logica PLC, - has formed the retail banking division based in Dallas to help banks integrate a rapidly growing array of electronic delivery systems, including automated teller machines, debit card point-of-sale networks, branch automation, and home banking.

In tandem with that announcement, Logica officials said they have signed a nonexclusive global distribution agreement with Shared Systems Corp. to market an electronic funds transfer software package called ON/X, running on hardware from AT&T Global Information Solutions Corp. Dallas-based Shared Systems is a subsidiary of Stratus Computer Inc., Marlboro, Mass.

The newly organized unit, headed by former Shared Systems executive John Kempisty, "will unify and strengthen our global retail delivery systems efforts." said William Engel, president and chief executive officer of Logica Inc. "The retail delivery systems market is growing at a rapid rate. This new division will ensure that our customers are prepared for increasingly sophisticated technologies that will allow banks to maintain closer relationships with their customers while providing them with exciting new services such as automated bill payment, home banking, and mobile banking."

Additionally, the retail banking division "will enhance our strategic partnerships with two of the leading players in the industry, AT&T Global Information Solutions and Shared Systems," said Mr. Kempisty.

Brian Herwick, vice president, marketing at the Logica unit, said the reorganization will coordinate a number retail banking solutions: the ON/X software for ATM and electronic payments processing, a client-server branch automation system, and a bank card management system.

All of these application software packages run under the Unix operating system on AT&T hardware, Mr. Herwick noted, making it easier for banks to mix and match as their customer needs require it. "We want to look at ourselves as a capabilities company for retail banking, specifically retail tail delivery on the AT&T platform form,"he added.

Mr. Herwick said most financial institutions already have access to an infrastructure that can deliver an expanding menu of electronic banking products. "Banks have had an information superhighway for years; it's called an ATM network," he said.

The retail systems division will market its products and services globally, drawing on Logica's eight "competency centers" around the world for technical support, Mr. Herwick said, noting that Unix-based retail banking software predominates in Europe and Asia, and it use in the United States "is definitely growing."

The Logica division has already inked deals with banks in Russia and Vietnam for retail systems based the ON/X software.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.