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 PHILADELPHIA, Sept. 29 /PRNewswire/ -- CoreStates Financial Corp (NASDAQ: CSFN) today revealed a major, new initiative aimed at solidifying its position as a leading provider of third-party payment processing services to financial institutions.
 According to Terrence A. Larsen, chairman, president and chief executive officer, CoreStates is launching a new transaction services business called Transys, which will provide banks and other financial institutions with a full range of check processing, electronic check presentment and related payment services. Transys, headquartered in Philadelphia, initially will serve the needs of customers in the Third Federal Reserve District, Larsen said.
 The formation of Transys follows extensive strategic study of market needs in key processing areas where CoreStates has core strengths. The study identified opportunities for CoreStates given the trend among banks to seek outside providers for services where the processing alone does not differentiate the banks in the eyes of their customers. Among these, CoreStates' analysis anticipates a growing demand by financial institutions for high quality, reliable, third-party check processing, an area in which CoreStates already has a large market position. Transys is aimed at that market potential.
 "This move is an important step in furthering our strategic objective to identify high-growth opportunities in fee-based, product- focused businesses in areas where we have a competitive advantage," Larsen stated.
 The wholesale and retail operations of CoreStates and its affiliated banks will be the first customers of Transys.
 According to Robert N. Gilmore, CoreStates' chief technology and processing services officer: "Transys is one result of efforts we began two years ago to seek strategic opportunities to develop third-party transaction processing businesses. Transys will provide the technical and operational infrastructure and overall processing capabilities to lead its customers in the transition from paper to electronic processing."
 According to William M. Fenimore Jr., executive vice president of CoreStates responsible for strategic planning and business development for transaction services, "increasingly financial institutions are being confronted with critical decisions about which products and services they will offer and how best to deliver them. Many financial institutions are looking for ways to continue to provide services to their customers without performing all the processing or investing in the technologies themselves. Transys will be a credible alternative for them."
 "CoreStates always has been and will continue to be highly committed to the check processing business," he continued. "Our goal for Transys is to focus exclusively on check payment processing. This is a significant departure from banks and other non-bank providers, which devote only a portion of their time and efforts to processing checks. This focus will allow us to concentrate all of our attention on advancing the business objectives of our customers in all areas that touch check in such a way that they, in turn, can best serve their customers.
 "Through the innovative use of technology in the management and processing of payment-related information, Transys will become the payment services network of choice," Fenimore added.
 CoreStates has a successful history of providing third-party services. In 1979, CoreStates founded Money Access Service (MAC), the automated teller machine (ATM) network and debit transaction processing business. It became the largest processor of ATM transactions in the United States. In 1992, MAC became a wholly owned subsidiary of Electronic Payment Services, Inc., a joint venture of CoreStates and three other regional banking companies.
 Suzanne J. Peck, former chief information officer for Student Loan Marketing Association (Sallie Mae), one of the nation's largest wholesale processors, has been appointed chief executive officer of Transys. She will report directly to Fenimore.
 Transys will include all 1,100 current CoreStates check operations personnel.
 CoreStates Financial Corp, with $23.5 billion in assets, is a multibank holding company based in Philadelphia. Through its principal banking subsidiaries, it conducts a broad range of regional national and international commercial and correspondent banking activities, trust services and consumer banking services from 280 domestic and five foreign branches and 18 foreign representative offices. CoreStates engages in commercial finance and factoring, discount brokerage, small business investment, investment banking and financial transaction processing activities through units and subsidiaries operating throughout the United States and overseas.
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 /CONTACT: Gregg Feistman or Linda Stryker of CoreStates Financial, 215-973-3546/

CO: CoreStates Financial Corp ST: Pennsylvania IN: FIN SU:

MP -- PH004 -- 6645 09/29/93 08:04 EDT
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Publication:PR Newswire
Date:Sep 29, 1993

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