Nationar, a leading provider of check processing services to banks, has formed a new division to handle its core banking software for a midrange computer system from International Business Machines Corp., Armonk, N.Y.
The need for a new unit springs from New York-based Nationar's acquisition of Inbank, a Danbury, Conn.-based software firm.
The new unit, called Nationar Information Services, will use Danbury as its headquarters. The Inbank software has been renamed the Sector 400 system to reflect the fact that it runs on IBM's AS/400 midrange computers.
Variety of Programs
About 50 financial institutions currently use the Sector 400 software, a turnkey product that includes programs for most basic banking functions, including lending, deposit, on-line interfaces with automated teller machine networks, and customer information files.
The Information Services unit also offers financial institutions the ability to use the software in a service bureau arrangement. Nationar executives said a financial institution can switch from a service bureau to an in-house arrangement at any time during the life of its contract with Nationar.
Nationar is a New York State-chartered financial institution with more than $1.5 billion in assets and over 700 clients.