Fiserv Inc. (Nasdaq: FISV) has extended its Fiserv Clearing Network (FCN) to the Northeastern part of the United States through the recent signing of Bankers' Bank Northeast as a settlement partner.
The contract makes Bankers' Bank the FCN Settlement Bank for item processing centers located throughout New England.
In order to clear checks, financial institutions must find a way to settle accounts, a service that is typically handled through a correspondent relationship or through the Federal Reserve. By using the Fiserv Clearing Network, financial institutions can improve efficiency and reduce check-clearing costs. In addition, the Fiserv Clearing Network paves the way for exchanging check images as that technology gains popularity. Fiserv's expanded arrangement with Bankers' Bank Northeast enables community banks throughout the area to clear items with greater operational and cost efficiencies.
Mark Damico, president of the Fiserv Item Processing Group, said the agreement with Bankers' Bank, based in Glastonbury, Conn., adds a key market as Fiserv builds a nationwide network for clearing and settling checks.
"Financial institutions in New England are eager to find other options for clearing checks," Damico said. "This agreement with Bankers' Bank Northeast will provide clients with some distinct advantages, including the ability to reduce costs, to gain efficiencies and to be prepared for the day when widespread image exchange is a reality."
"The new capabilities, which build on an eight-year relationship between Bankers' Bank Northeast and Fiserv, will enable both providers to more efficiently serve New England's community banks," said Peter Sposito, president and CEO of Bankers' Bank Northeast.
"Fiserv's multiple locations throughout New England provide a significant advantage to Bankers' Bank and the client banks it serves," said Sposito. "Through those locations and its ability to capture check images and transmit them both in-region and to national locations, Fiserv helps us to meet the check and image clearing needs of community banks throughout New England."
"Bankers' Bank has become a trusted correspondent bank because we do not compete for business with the clients we serve," said Sposito. "Our clients know that Fiserv already provides us with a wide range of technology solutions. When they learn that we have expanded our relationship to include the Fiserv Clearing Network, they will realize this is one more best-of-breed solution designed to help keep them ahead of the competition."