Chemical to Launch Trust System: Global Tracking Will Mesh with Hanover's Capability
Iida, Jeanne, American Banker
Chemical Banking Corp. is about to put into daily use a large-scale system for trust accounting that will be used after the bank merges with Manufacturers Hanover Corp.
The software and computers installed by Chemical will be combined with a securities accounting and reporting system that is under development at Manufacturers Hanover, a Chemical executives said.
The Manufacturers' project "has some duplicate features...but the two are also complementary," said Jeremiah F. O'Leary, senior vice president at Chemical. "We will blend both [systems] together, and eliminate the redundancies."
The Hanover system, scheduled for completion by mid-1993, will cost $25 million to develop, according to Chemical officials, and is designed to manage securities processing, tracking such things as dividend collections and settlement practices in different countries and in different time zones.
While Chemical's software focuses on customer reporting and accounting, Hanover's system may replace pieces of the Chemical software that handles securities processing, said Robert Roszkowski, vice president in securities processing at Manufacturers Hanover.
Both projects were started before the banks decided to merge this summer. The two banks expect to combine officially on Dec. 31.
Decision Due Soon
Mr. O'Leary said that in the next few weeks, the merged bank would disclose which parts of the two systems would be kept, "and the extent to which one will be blended into the other." The issue is sensitive because of the potential impact on customers.
By February, Chemical expects to have moved selected Chemical global custody accounts - where trust clients hold U.S. and foreign securities - to the new software.
Mr. O'Leary said he hoped to convert all of Chemical's global portfolio of about $20 billion to the new system by June.
If the software performs well, Manufacturers Hanover's global accounts will also be moved to by the end of 1992, representing a total portfolio of $30 billion in global custody.
Computers from Digital
Chemical purchased the software in May from Premier Systems, Wayne, Pa. …