National Australia Bank (NAB), Westpac and the Commonwealth Bank of Australia have confirmed that Fiserv has won a 12 year contract, worth A$600m, to supply the three banks with cheque processing services.
Fiserv said in November 2004 that it was in negotiations to manage the operations of a cheque processing utility established by the banks.
Under the deal, Fiserv will provide the banks with day one cheque processing and image archive services from April 2005.
All existing bank employees that work in cheque processing areas will be offered positions with Fiserv, on at least similar terms and conditions to those that they are currently employed under.
NAB says the contract with Fiserv will deliver technology improvements as well as scale and efficiency benefits in the face of declining cheque volumes.
Mark Steyn, regional general manager of operations, NAB, says: "With volumes in Australia declining at about five per cent per annum, the National faced the need to reinvest in cheque processing capabilities in a declining market.
"By entering into the utility we have been able to avoid the cost of that investment whilst ensuring that all our staff have been offered jobs."
Andrew Carriline, general manager, strategic sourcing, Westpac, adds: "The
arrangement is a sensible response to declining cheque usage in Australia. By
combining the volumes of the three banks we can ensure customers benefit from
modern technology and systems."