Newtrend Wins a Contract To Process for Data Co-op
Financial Information Trust, a cooperative data center owned by a group of Midwest banks and thrifts, has signed a $40 million processing-services agreement with Newtrend.
Newtrend, based in Orlando, Fla., will manage about half the data center operations of Des Moines-based Financial Information Trust. The agreement is initially for four years but with an option to extend to 10.
The "outsourcing" agreement gives Newtrend a foothold for its service bureau operations in the Midwest and leaves Financial Information Trust free to concentrate on its services to thrifts, which constitute the majority of its membership. It is Newtrend's eighth new contract this year.
Newtrend will take over the processing for 45 Financial Information Trust customers, all using Newtrend's Infopoint Series banking software, which runs on International Business Machines Corp. mainframes.
Development Planned
"This move makes us a key player in outsourcing for banks," said Robert Fohl, senior vice president and general manager in Newtrend's outsourcing division. "We plan to develop this center into our major outsourcing center in the Midwest."
Financial Information Trust will continue to manage operations for about 120 thrift members, who use banking software running on Unisys Corp. computers.
"The IBM side of the business was really developed over the last five years, to focus on the larger Financial Information Trust customers," said Ken Moseley, executive vice president of Financial Information Trust. "This move gives the remaining 120 thrift customers an organization that focuses on them."
