IBM Shifting Image Software Unit to 1st Tennessee Venture(International Business Machines Corp. Transferring Operations to Check Solutions Co.)(Brief Article)
Luhby, Tami, American Banker
International Business Machines Corp. is transferring the ownership and operation of its check image software development unit to its business partner Check Solutions Co. of Memphis.
Check Solutions was formed in 1990 with First Tennessee Bank to install and customize IBM software.
Since then, however, Check Solutions has created its own applications, said Geoff Emerson, director of IBM Payment Solutions. This meant that customers would turn to IBM for some questions and support and to Check Solutions for other matters.
The realignment "minimizes confusion and simplifies the process," said Joe Rowell, Check Solutions president. All but three or four of Check Solutions' customers are also on IBM's client list.
"We concluded that our customers would be better served by a single channel," said Mr. Emerson.
Consultant Terence Roche, managing director of M One Inc. in Phoenix, said the move might persuade more banks to migrate to image-based check operations, which can be costly to implement butoffer new products that can generate revenue. A single point of accountability makes imaging more attractive, he said. …