Magazine article American Banker

Northern's Wire Operation Aims for 1-Hour Recovery

Magazine article American Banker

Northern's Wire Operation Aims for 1-Hour Recovery

Article excerpt

Northern's Wire Operation Aims for 1-Hour Recovery

Looking to give up-to-the-minute assurances to its funds transfer customers, Northern Trust Co. has installed a new system for recovering from disasters.

Officials of Northern Trust say the new technology will enable the bank to accurately assess its financial position, and to recover its operations in less than an hour in the event of a computer or telecommunications failure.

Previously, operations could have been recovered in three to four hours. The Chicago-based bank processes some 6,000 wire transactions - about $12 billion to $14 billion - daily.

Obligation Recognized

"As a money-center bank, we owe it to our customers to have a secure environment," said Stephen Sims, vice president, electronic banking. "We owe it to our existing customer base."

Northern Trust is following in the footsteps of the major New York banks in adopting this recovery technique for wire transfer operations. Last June, the New York Clearing House Association began requiring those members that transfer over $20 billion daily to be able to restore operations within six hours.

Nearly two years ago, Manufacturers Hanover Trust Co. was the first to use remote logging for wire transfers, increasing its disaster recovery budget by $1 million a year.

The technique, called remote logging or remote journaling, makes a copy of each transaction as it occurs and stores the information on a computer at a remote site. …

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