Sterling Software Inc. is licensing its proprietary value-added network service for banks to remarket as their own.
The network, combined with Sterling's electronic data interchange origination system called Vector:Connection, can be used as part of a comprehensive financial EDI service for banks to offer their corporate customers.
Sterling's EDI system is a common system among the industry's EDI- capable banks. By using Sterling's network service, banks retain control of the customer relations and are not required to make "major investments in new technology," said Robert Heard, a vice president with the Dallas-based software developer.
"In the past there has been competition between banks and value-added networks," Mr. Heard said. "What we are trying to do is eliminate that competition and work as partners with our banks."
Financial electronic data interchange is the electronic transfer of payment and related information in standard computer formats. Institutions can remarket Sterling's EDI services for applications such as tax, health care, and corporate trade.
The new offering, called Bank Alliance Program, allows banks to offer clients a "one stop" service.
Financial electronic data interchange is growing at an annual rate of 76%, according to the National Automated Clearing House Association.
Still, relatively few institutions have the technology to pass along remittance information to their corporate customers. Banks can use Sterling's value-added network, connected to more than 12,000 corporations, to transmit a single customer's payment information to hundreds of receiving accounts.
Sterling's program is already in use by an undisclosed New York money- center, which offers it as a payment option to corporate customers.
Pricing for the program is on a per-transaction basis. Either the bank or Sterling's own staff will provide the technical support. Banks can also cobrand Sterling's marketing literature.
Sterling's EDI origination system is installed in 44 institutions, or "75% of all fully EDI capable banks," said M.A. Hancook, a manager with Sterling.
