Wachovia Bank has acquired the correspondent banking payment processing business of Harris Bank International Corporation (HBIC), a part of the BMO Financial Group. The terms of the transaction were not disclosed.
Wachovia will work with HBIC to transition its existing correspondent bank customers to Wachovia in order to process their US dollar payments and will also process US dollar correspondent payments for BMO Financial Group. Wachovia and BMO Financial Group historically have enjoyed a strong working relationship, particularly in the areas of trade processing and Canadian cash management services. This transaction further strengthens these ties.
“We see this as a big win. Not only does it build on our already strong alliance with our friends at BMO Financial Group, but it also gives Wachovia the opportunity to demonstrate our leadership in the payments business,” says Michael Heavener, Executive Vice President and head of Wachovia’s International Division. “It brings to Wachovia both new correspondent relationships and additional activity with existing customers. We believe that the many similarities across the two banks’ processing platforms ensure a straightforward, seamless transition.”
Processing cross-border payments is an important business for Wachovia. The bank processes 57,000 payments daily, totalling $160 billion. The transaction furthers Wachovia’s strategy of being a banker’s bank, says George Doolittle, Managing Director and head of Wachovia’s Global Payments Services group.
“This transaction is in line with the industry trend we are seeing of increased processing consolidation,” adds Doolittle. “We are excited to be able to offer HBIC’s correspondent customers our suite of comprehensive, simple and practical payment solutions.”