BankServ
Encyclopedia
BankServ, a financial services company headquartered in Enterprise
, Nevada
, develops electronic banking software and operates outsourced data processing centers used by banks and other businesses to move money electronically. Founded in 1996, it does business with over 400 banks in more than 50 countries, primarily supplying banks with the behind-the-scenes programs used for remote deposit
, Internet bill payment, mobile payments, wire transfer
payments and sending messages over the international SWIFT
network. The company operates offices in Las Vegas
, San Francisco, Salt Lake City, Houston and London
.
Since 2004, BankServ has expanded into the fields of consumer remote deposit
, electronic bill payment
and credit card
processing, and added an international division with the acquisition of the London-based Symtec Corporation. BankServ has received a number of awards over the past five years since 2003, including nominations to Inc. Magazine's Inc. 500 list in 2003 and 2004, a list of the fastest-growing privately held corporations in the United States. Most recently, BankServ was nominated to the Inc. 5,000 Fastest Growing Private Companies list every year from 2003-2010.1
BankServ was founded by a group of investors led by current CEO David Kvederis, a former senior vice president of Wells Fargo Bank. Kvederis is widely known in the financial industry for helping introduce Direct Deposit
during his tenure as chairman of the National Automated Clearing House Association (now NACHA-The Electronic Payments Association
) during the 1980s. He was also was hired by the U.S. government
in 1993 to assist with the transition from a communist to a capitalist
financial system in the former Soviet republic of Lithuania
.
Originally incorporated under the name Nova Payments, the company now known as BankServ started with the idea of selling check scanners to grocery store
s, allowing them to deposit their checks without going to the bank. But in the late 1990s, BankServ’s wire transfer business (acquired from Ictus Inc) became its main revenue source, and the idea of grocery store check conversion was abandoned. However, when the United States Congress
passed the Check 21 Act
in 2003, the legal requirements surrounding remote deposit became less strict, and the company decided to re-enter the business with a flagship product named DepositNow!
In May 2009, BankServ acquired the assets of Commerciant LP, a Houston-based technology company involved in wireless
credit card processing. The company now offers a handheld terminal that can process credit card transactions on the spot over various mobile phone
networks.
In 2010, BankServ acquired NetDeposit, one of its main rivals in the remote deposit field, from Zions Bancorporation
in a primarily cash transaction. As a result of the acquisition, BankServ's check processing operations nearly doubled in size, and added new branch capture and mobile phone check deposit software. The combined company estimates that it now processes remote deposit transactions for more than 100,000 business customers in the United States
.
In August 2011, private equity firm GTCR acquired the controlling interest in BankServ, poising the company for expansion and growth. GTCR's portfolio of more than 25 companies includes fast-growing firms in the financial services and technology, healthcare and information services and technology fields.
Altogether, BankServ estimates that it handles money either directly or indirectly for about one million people and businesses a day.
Enterprise, Nevada
Enterprise is an unincorporated town in the Las Vegas metropolitan area in Clark County, Nevada, United States. The population was 14,676 at the 2000 census, and estimated at 78,488 in 2008...
, Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
, develops electronic banking software and operates outsourced data processing centers used by banks and other businesses to move money electronically. Founded in 1996, it does business with over 400 banks in more than 50 countries, primarily supplying banks with the behind-the-scenes programs used for remote deposit
Remote deposit
Remote deposit refers to the ability to deposit a check into a bank account from a remote location, such as an office or home, without having to physically deliver the check to the bank...
, Internet bill payment, mobile payments, wire transfer
Wire transfer
Wire transfer or credit transfer is a method of electronic funds transfer from one person or institution to another. A wire transfer can be made from one bank account to another bank account or through a transfer of cash at a cash office...
payments and sending messages over the international SWIFT
Swift
The swifts are a family, Apodidae, of highly aerial birds. They are superficially similar to swallows, but are actually not closely related to passerine species at all; swifts are in the separate order Apodiformes, which they share with hummingbirds...
network. The company operates offices in Las Vegas
Las Vegas metropolitan area
The Las Vegas Valley is the heart of the Las Vegas-Paradise, NV MSA also known as the Las Vegas–Paradise–Henderson MSA which includes all of Clark County, Nevada, and is a metropolitan area in the southern part of the U.S. state of Nevada. The Valley is defined by the Las Vegas Valley landform, a ...
, San Francisco, Salt Lake City, Houston and London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
.
Since 2004, BankServ has expanded into the fields of consumer remote deposit
Remote deposit
Remote deposit refers to the ability to deposit a check into a bank account from a remote location, such as an office or home, without having to physically deliver the check to the bank...
, electronic bill payment
Electronic bill payment
Electronic bill payment is a feature of online banking, similar in its effect to a giro, allowing a depositor to send money from their demand account to a creditor or vendor such as a public utility or a department store to be credited against a specific account...
and credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
processing, and added an international division with the acquisition of the London-based Symtec Corporation. BankServ has received a number of awards over the past five years since 2003, including nominations to Inc. Magazine's Inc. 500 list in 2003 and 2004, a list of the fastest-growing privately held corporations in the United States. Most recently, BankServ was nominated to the Inc. 5,000 Fastest Growing Private Companies list every year from 2003-2010.1
BankServ was founded by a group of investors led by current CEO David Kvederis, a former senior vice president of Wells Fargo Bank. Kvederis is widely known in the financial industry for helping introduce Direct Deposit
Direct deposit
Direct deposit also known as Direct credit is a banking term used to refer to certain payment systems used to transfer money where a payment is initiated by the payer not the payee, namely:* In Europe, the giro system...
during his tenure as chairman of the National Automated Clearing House Association (now NACHA-The Electronic Payments Association
NACHA-The Electronic Payments Association
NACHA – The Electronic Payments Association manages the development, administration, and governance of the ACH Network, the backbone for the electronic movement of money and data in the United States. It is funded by the financial institutions it governs...
) during the 1980s. He was also was hired by the U.S. government
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
in 1993 to assist with the transition from a communist to a capitalist
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
financial system in the former Soviet republic of Lithuania
Lithuania
Lithuania , officially the Republic of Lithuania is a country in Northern Europe, the biggest of the three Baltic states. It is situated along the southeastern shore of the Baltic Sea, whereby to the west lie Sweden and Denmark...
.
Originally incorporated under the name Nova Payments, the company now known as BankServ started with the idea of selling check scanners to grocery store
Grocery store
A grocery store is a store that retails food. A grocer, the owner of a grocery store, stocks different kinds of foods from assorted places and cultures, and sells these "groceries" to customers. Large grocery stores that stock products other than food, such as clothing or household items, are...
s, allowing them to deposit their checks without going to the bank. But in the late 1990s, BankServ’s wire transfer business (acquired from Ictus Inc) became its main revenue source, and the idea of grocery store check conversion was abandoned. However, when the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
passed the Check 21 Act
Check 21 Act
The Check Clearing for the 21st Century Act is a United States federal law, , that was enacted on October 28, 2003 by the 108th Congress. The Check 21 Act took effect one year later on October 28, 2004...
in 2003, the legal requirements surrounding remote deposit became less strict, and the company decided to re-enter the business with a flagship product named DepositNow!
In May 2009, BankServ acquired the assets of Commerciant LP, a Houston-based technology company involved in wireless
Wireless
Wireless telecommunications is the transfer of information between two or more points that are not physically connected. Distances can be short, such as a few meters for television remote control, or as far as thousands or even millions of kilometers for deep-space radio communications...
credit card processing. The company now offers a handheld terminal that can process credit card transactions on the spot over various mobile phone
Mobile phone
A mobile phone is a device which can make and receive telephone calls over a radio link whilst moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile network operator...
networks.
In 2010, BankServ acquired NetDeposit, one of its main rivals in the remote deposit field, from Zions Bancorporation
Zions Bancorporation
Zions Bancorporation is a member of the S&P 500, a bank holding company headquartered in Salt Lake City, Utah, USA. Among its subsidiaries are Amegy Bank of Texas, California Bank & Trust, National Bank of Arizona, Nevada State Bank, the Commerce Bank of Oregon, the Commerce Bank of Washington,...
in a primarily cash transaction. As a result of the acquisition, BankServ's check processing operations nearly doubled in size, and added new branch capture and mobile phone check deposit software. The combined company estimates that it now processes remote deposit transactions for more than 100,000 business customers in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
In August 2011, private equity firm GTCR acquired the controlling interest in BankServ, poising the company for expansion and growth. GTCR's portfolio of more than 25 companies includes fast-growing firms in the financial services and technology, healthcare and information services and technology fields.
Altogether, BankServ estimates that it handles money either directly or indirectly for about one million people and businesses a day.
External links
- BankServ company website: http://www.bankserv.com
- BankServ International division website: http://www.bankservinternational.com
- DepositNow! remote deposit website: http://www.depositnow.com
- Mobilescape wireless payments website: http://www.mobilescape.com