Unisys awarded $10 million contract as integrator for Liberty National Bank UPS check processing venture

Business Wire, Jan 4, 1995

BLUE BELL, Pa.--(BUSINESS WIRE)--Jan. 4, 1995--Unisys Corp. Wednesday announced that it has won a $10 million contract to serve as solutions integrator for Liberty Payment Services,Inc., of Louisville, Ky.

Liberty Payment Services is a recently formed check processing subsidiary of Liberty National Bank and Trust Company of Kentucky, the lead bank of Banc One Kentucky Corporation.

Under a unique agreement with UPS Worldwide Logistics, Liberty Payment Services provides an overnight check clearing service that sorts and processes checks drawn on banks throughout the United States.

Under the terms of the agreement, Unisys will provide a range of professional and integration services, as well as a complete check processing system based on Unisys advanced technology. Unisys works in concert on the project with J.D. Carreker and Associates, Inc., the Dallas-based consulting and technology firm that supported the creation of Liberty Payment Services.

Unisys Facilities Services was construction manager for the state-of-the-art processing facility for Liberty Payment Services. The center, scheduled to open in January 1995, is located near the UPS operation at Louisville's Standiford Field airport.

Unisys is also providing project management, installation planning, network and solution implementation and integration, and ongoing maintenance and support services. In addition, Unisys will install, certify and maintain LANs and client/server equipment required for other vendors' software solutions.

"Liberty Payment Services has been established to provide a unique service to financial institutions throughout the country," said Malcolm B. Chancey, Jr., Chairman of both Liberty and Banc One Kentucky Corp.

"The key to success lies in the complementary skills each member contributes to this alliance. Unisys brings comprehensive expertise in both integration services and check processing technology. This Unisys solution enables Liberty Payment Services to fulfill its immediate mission of providing quick and economical turnaround to its clients nationwide, while continually expanding the scope and range of services we can deliver over the longer term."

The Liberty Payment Services processing center will initially employ a check processing system based on two high-performance Unisys application processors, five high-speed Unisys DP 1825 document processors for check capture, and two medium-speed DP 500 document processors for reject reentry processing.

This initial configuration will support Liberty Payment Services' Same Day Clear and Weekend Clear products. These products provide check clearing alternatives for the top 800 banks across the country. Liberty Payment Services expects to expand the configuration over the next several years. The system also includes an extensive suite of networking and environmental software.

Key to the document processing solution is Unisys Item Processing System (IPS) software, which will manage all document capture and reject reentry processing. The IPS software will also support Liberty's use of J.D. Carreker and Associates' CheckLink Send and Receive software for electronic check presentment (ECP).

ECP, a future product capability for Liberty, will allow electronic transmission of processed checks prior to their physical shipment to the paying banks. This capability will accelerate the availability of funds to the original collecting banks prior to physical receipt of the checks by the paying banks. It can also help avoid delays in payment caused by adverse conditions and delivery difficulties.

The Unisys-provided solution enables Liberty Payment Services to offer innovative payment options and significant savings to its customers in check clearing fees, reduced expenses for transportation, and float (the delay in clearing checks).

According to Gary Cawthorne, vice president, financial services marketing in Unisys United States Division, "The solution we are providing Liberty Payment Services exemplifies a key objective in Unisys financial services strategy: using Unisys extensive services capabilities to help clients deploy industry-leading technologies not only to serve their customers, but also to create expanded opportunities for revenue generation."

Liberty Payment Services: A Unique Approach to Clearing Under its agreement with Liberty Payment Services, UPS Worldwide Logistics will pick up checks from banks throughout the United States, transport them to UPS gateways for loading onto UPS aircraft, and fly the commingled checks directly to Louisville for fine sorting and processing at Liberty's operations facility.

UPS can arrange to pick up checks from the highest volume locations throughout the U.S. as late as 10 p.m. and deliver them to over 200 paying banks by 8 a.m. the following morning.

Because the facility is located next to UPS air operations, Liberty Payment Services can benefit its customers by leveraging UPS' extensive delivery network and logistical expertise to expedite transportation of checks. -0- Unisys is a registered trademark of Unisys Corp. All other brands and products referenced herein are acknowledged to be trademarks or registered trademarks of their respective holders.