Philadelphia-based Sovereign Bancorp has signed a six-year IT services outsourcing agreement with Alltel Information Services.
Under the agreement the bank will migrate its deposit, loan, mortgage, channel integration and Internet banking systems to Alltel platforms.
All Sovereign accounts will be processed in an application service provider (ASP) environment. In addition, Alltel will maintain an onsite presence at the bank to provide support and direction to improve businesses processes.
John McCarthy, executive vice president and chief technology officer at Sovereign, says of the deal: "We get the economic benefit of processing our core accounts in a leveraged ASP environment and we also receive the benefits of continual technological innovation."
Sovereign Bancorp says its customers will be able to use any of its 525 community banking offices once the transition to Alltel has been completed.