Magazine article American Banker

American Express Offers Fund Statements to Banks

Magazine article American Banker

American Express Offers Fund Statements to Banks

Article excerpt

American Express Offers Fund Statements to Banks

An arm of the American Express Co. is introducing a service that produces mutual fund account statements for banks, avoiding the need for institutions to give third-party fund providers access to valuable client information.

Using software developed for its Shearson Lehman Brothers subsidiary, American Express is hoping to tap into banks' growing mutual fund business.

Unanswered Question

This comes as American Express - a fierce competitor in some bank product lines - is trying to attract banks that are looking for outside firms to run their data processing operations, arrangements that have become known as outsourcing. But just how much business banks are willing to throw directly to a nonbank rival remains to be seen.

"This is a technology we have that is perfect for banks," said Stephen Wyle, senior vice president for strategic planning of American Express' Boston-based Shareholder Services Group. That division is the second-largest mutual fund transfer agent in the country, behind DST Systems, Kansas City, Mo. Both perform back-office operations for mutual funds.

Banks can contract with American Express to run the system for them and produce the statements, for which a fee of $3 to $10 per transaction is paid by the mutual fund. Or banks can buy a license from American Express to run the software on their own computers. The software runs on computers using the Unix operating system, which allows it to be installed on a variety of hardware brands. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.