Magazine article American Banker

Mellon Has Deal to Acquire an ATM Business from Fleet

Magazine article American Banker

Mellon Has Deal to Acquire an ATM Business from Fleet

Article excerpt

Mellon Has Deal to Acquire An ATM Business from Fleet

A technology division of Mellon Bank Corp. announced last week that it is buying a small ATM processing business from Fleet/Norstar Financial Corp.

Under the agreement, Mellon's Network Services division will process teller-machine transaction data for 29 financial institutions that were formerly the customers of the Connecticut Bank and Trust Co. CBT, once a unit of the failed Bank of New England, was merged with Fleet Bank of Connecticut on July 15 to form Fleet Bank.

The conversion will involve 24 teller-machine terminals that generate an estimated 200,000 transactions per month.

The move is part of the $48 billion-asset Fleet's plans to pare away businesses it deems unnecessary or redundant in light of its acquisition of the failed Bank of New England from the Federal Deposit Insurance Corp. That acquisition was officially completed July 15.

"Processing ATM transactions for correspondent banks is not a vital business for us," said Richard J. DeNoia, a spokesman for Fleet Bank. "We feel some of our other services demand more attention." He said the bank will continue to participate in correspondent bank operations in a number of other areas, including cash-letter and wire-transfer processing.

Data Network Pact with AT&T

The agreement with Pittsburgh-based Mellon marks second major cost-cutting move since Fleet officially acquired the Bank of New England two weeks ago. …

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