Systematics, Home Loan Bank in Pact
Systematics Information Services Inc. announced this week an $80 million data processing contract with the Federal Home Loan Bank of San Francisco.
Systematics will manage the bank's data facilities for the next five years in an "outsourcing" arrangement. The $42 billion-asset San Francisco bank is the largest of the 12 regional Home Loan banks and the first such institution to farm out its data processing.
In addition to managing the bank's data processing operations, Systematics purchased its check processing business. The bank's item processing facilities handle about 150 million checks annually for 190 financial institutions.
"These two transactions will enable us to sharpen our management focus on bank credit and deposit services," said Dean Schultz, president of the San Francisco bank.
The agreement will provide Systematics - which already processes 2.5 billion checks annually for U.S. institutions - with excess processing capacity that it expects to use in expanding its presence in the California market.