State First National Bank of Texarkana, Ark., has selected Peerless21 bank data processing software from Richardson, Tex.-based Peerless Systems Inc.
The software, set up to provide full data processing services, including item capture, exception item processing, clearing house, and print services, will be installed at the bank's service bureau site, run by Electronic Data Systems Corp.
This is the first time Peerless21 software will be used in a service bureau environment. The Peerless system will operate on an International Business Machines Corp. AS/400 mid-range computer.
"Bank management looked at a number of solutions and found Peerless, liked it, and asked us to install it," said Ted Shaw, a divisional vice president at EDS. "We have been processing the bank for 20 years, and this new system will allow us to continue to meet the bank's processing needs for years to come."
Sharing the Service
The bank will offer the Peerless services to its 11 correspondent banks in southwest Arkansas and northeast Texas.
State First's data processing will not be switched to the Peerless; instead, the bank will continue to have EDS use a New-trend software system to handle its own processing.
"We wanted to offer our correspondents a unique system that would give them more flexibility as technology continuously changes," Lynda Williams, senior vice president of operations. "We saw what the Peerless system had to offer and found it would meet the needs of our correspondents."
Late last week, the service bureau converted the first correspondent, State Bank of DeKalb, a $103 million-asset bank headquartered in DeKalb, Tex.
In a separate announcement, State First recently signed a three-year agreement to extend its use of EDS services.
"We consider this extension to be a continuation of a very long-standing and mutually beneficial relationship," said Howard Qualls, president and chief executive officer of State First. "We think of EDS as part of our team; they have provided top notch services for us through the last 20 years."
EDS Corp. is a subsidiary of General Motors Corp. with operations in 30 countries. It provides information technology consulting and outsourcing services to business and governments throughout the world.
Peerless Systems provides data processing hardware, software, and services to more than 400 financial institutions nationwide. Peerless was a division of EDS until 1989, when management executed a buyout from the parent.