Butterfield have formed a joint venture company to conduct their data processing.

"The work that it will do for the banks will be of a non-strategic nature, purely backroom operations activity, and will in no way affect our competitive activity regarding sales and customer service,'' Bank of Butterfield executive vice president Peter Cawdron said.

ProServe Bermuda will also serve as a clearing house for all document processing which involves converting information on paper into data stored on a computer.

"We are doing this because, quite simply, new technology is expensive and demands certain volumes of activity to pay for itself,'' Mr. Cawdron said.

"... What is so exciting about this solution of joining forces in this one area is that it keeps these functions here in Bermuda, rather than having them outsourced to some distant jurisdiction, which of course is now entirely feasible.

"So we are not only keeping the associated jobs here in Bermuda but, just as importantly, we are providing a means by which new management systems and technology can continue to be introduced into Bermuda in the future.'' Each bank currently uses about 50 percent of their own document processing facilities. The new company will be based at Butterfield's Rosebank Centre office in Hamilton.

A search is underway for a manager to run the new company. Once chosen it will be up to the manager to decide how the company will be organised and how many staff will be needed.

Mr. Cawdron said once ProServe starts up the banks will enter into further discussions to determine what other functions can be transferred to the new company.