"The idea for ProServe resulted from both of us looking at our business creatively, rather than parochially, to ensure that we're operating at peak performance and in the true best interest of customers and shareholder," said Peter Cawdron, Executive Vice President in charge of operations at the Bank of Butterfield. "We are confident that ProServe Bermuda will maximise efficiency and, ultimately, profitability for both institutions."
Bank of Bermuda Executive Vice President for systems and operations, Peter Le Noury further explained, "Our organizations have talked about this kind of arrangement for a long time. Essentially, it means co-operating in non-strategic areas, while remaining fully competitive with regard to sales and customer service. It's going to be good for our companies and, at the same time, starting up a new, locally based corporation is good for Bermuda."
A search has been launched for an executive to manage ProServe Bermuda, which will be initially housed at Bank of Butterfield's Rosebank Centre office in Hamilton. The manager will report to a six-member board of directors composed of three representatives from each bank, with responsibility for determining precisely which functions the company can perform, how it will be organised, how many people it will employ, etc.
Among the first function to be taken up by ProServe Bermuda will be document processing, which involves converting the information from paper documents, such as cheques or transaction slips, into data that is downloaded to computer. The functions are largely automated at both banks.
Each bank reports that it is currently under-utilising its document processing capacity be as much as 50 percent. Other operations performed by the two organisations also have room for improved efficiency. Once ProServe starts up, the banks will review their operations and enter into discussions with ProServe's management to determine what might logically be moved to the new company.