National Penn Delivers 'Big-Bank' Service By Outsourcing

National Penn Bancshares, a $2.5 billion, southeastern Pennsylvania community bank, has hit on a formula for capturing middle market businesscustomers: provide an Internet-based cash management service typically available only from larger competitors.

"We want to be able to attract middle-market customers that are not happy with the larger banks, but can't be serviced by small banks," said Robin Hitchcock, vice president of electronic banking at Nat Penn.

The strategy involves "having products available to meet customers' needs," she said. "Certainly Internet is going to serve a big role in e-commerce."

Called Empower e-Cash Manager, the service features balance reporting, stop payments, account transfers, ACH, wire transfers and-eventually-bill payment and presentment and check reconciliation. Wireless access may be offered at a later date.

Powered by Twister, an Internet banking software product from Germany-based Brokat, Empower e-Cash Manager allows Nat Penn to service small-to-large corporations.

Brokat, which typically serves large financial institutions, is providing Twister to Nat Penn on a service bureau basis, allowing the bank to offer big-bank functionality without having to bring a large, costly system in-house. Customers accessing the service at Nat Penn's Web site (www.natpennbank.com) see only the Empower e-Cash Manager brand name; the Brokat name is hidden. In addition to hardware and software, the service bureau provides customer service, news releases, disaster recovery, monitoring and security. Nat Penn plans to eventually bring the system in-house, Hitchcock said.

National Penn Bancshares, a $2.5 billion, southeastern Pennsylvania community bank, has hit on a formula for capturing middle market business customers: provide an Internet-based cash management service typically available only from larger competitors.

"We want to be able to attract middle-market customers that are not happy with the larger banks, but can't be serviced by small banks," said Robin Hitchcock, vice president of electronic banking at Nat Penn.

The strategy involves "having products available to meet customers' needs," she said. "Certainly Internet is going to serve a big role in e-commerce."

Called Empower e-Cash Manager, the service features balance reporting, stop payments, account transfers, ACH, wire transfers and-eventually-bill payment and presentment and check reconciliation. Wireless access may be offered at a later date.

Powered by Twister, an Internet banking software product from Germany-based Brokat, Empower e-Cash Manager allows Nat Penn to service small-to-large corporations.

Brokat, which typically serves large financial institutions, is providing Twister to Nat Penn on a service bureau basis, allowing the bank to offer big-bank functionality without having to bring a large, costly system in-house. Customers accessing the service at Nat Penn's Web site (www.natpennbank.com) see only the Empower e-Cash Manager brand name; the Brokat name is hidden. In addition to hardware and software, the service bureau provides customer service, news releases, disaster recovery, monitoring and security. Nat Penn plans to eventually bring the system in-house, Hitchcock said.

The bank is aiming to switch 350 to 400 commercial customers from its direct-dial, PC/Windows-based banking to the Internet system. Nat Penn also offers Internet banking to its 4,000 retail customers.Nat Penn also offers Internet banking to its 4,000 retail customers.