Magazine article American Banker

Bankers Trust, Chemical Launch Custody Services

Magazine article American Banker

Bankers Trust, Chemical Launch Custody Services

Article excerpt

The securities-custody units of Bankers Trust New York Corp. and Chemical Banking Corp. are deploying new computer systems that will transform masses of paper documents into digitized images.

The banks are among the first to use so-called document image management technology in securities custody, observers said. The technology should give them an edge in this competitive trust-services business, officials said.

High Hopes

"We think this is going to be one bit of competitive technology that should open the door for us" with clients, said Ronald DeRenzo, vice president of Chemical's Geoserve unit in New York.

At Bankers Trust, assistant vice president Roger Porcella said the bank's new document image management system will "improve the timeliness with which we can respond to client inquires."

Bankers Trust and Chemical, along with State Street Bank and Chase Manhattan Corp., are among the largest providers of custody and trust services in the nation.

Chemical Bank calls its system Geoview. The technology, developed by Manufacturers Hanover Trust before the merger, will be used by the combined banks' custody units.

Initially, Chemical plans to use Geoview to enhance its custody services for private placements, Mr. DeRenzo said.

Of the more than $1.3 trillion of assets the bank holds under custody, private-placement assets make up only $100 million, officials said. But Chemical wants to do more such business, as private placement is one of the few custody markets where the bank can differentiate its services from those of competitors, Mr. DeRenzo said.

One problem with custody services for private placements of securities is that a bank must keep the paper issues on its premises.

Accommodating Customers

Unfortunately, owners of private placements need to periodically review these documents, Mr. DeRenzo said. …

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