Treasurer’s Office Announces New Banking Services Contract with People’s United Bank
MONTPELIER, VT — Vermont State Treasurer Beth Pearce today announced that the State of Vermont has reached an agreement with People’s United Bank, N.A. to provide core banking services. The contract is expected to generate savings that will accrue year over year.
“At the Treasurer’s Office, we do frequent request for proposals to obtain the best value for Vermont taxpayers,” said Treasurer Beth Pearce. “The Treasurer’s Office maintains a complex cash management system to process short-term investments, revenue streams and expenditures. After an exhaustive review, we determined that People’s United Bank provided the best value and lowest cost service to the State and Vermont’s taxpayers.”
The Treasurer’s Office conducted an open RFP process for banking options, including core banking services and merchant and lockbox functions. Key stakeholders from across state government were included in the vetting process, which was managed by the Treasurer’s Office. People’s United Bank’s proposal for core banking services provided the best value for the State of Vermont.
"We are extremely pleased and proud to have been chosen as the new banking partner for the State of Vermont," said Michael Seaver, President of People's United Bank in Vermont. "The award reflects our significant commitment to providing high level banking products and services to organizations and individuals in Vermont which in turn helps to support economic growth in the greater Vermont community."
In FY2017 the State of Vermont had an average daily cash balance of $346.6 million. People’s United Bank will be responsible for handling the banking services related to these deposits, and for the approximately 1.9 million disbursements and more than 400 thousand deposit transactions annually, which are overseen by The Treasurer’s Office.
Previously, core banking services were provided by T.D. Bank, N.A. The State of Vermont has had a successful working relationship with T.D. Bank for many years. T.D. Bank will continue to provide merchant and lockbox services to the Treasurer’s Office. “The State of Vermont appreciates T.D. Bank’s commitment to providing excellent banking services,” said Treasurer Pearce.
The core banking functions include management of 109 accounts. The State’s deposits and accounts will be move to People’s United Bank over the next few months.
“I look forward to working with People’s United Bank as we continue to optimize the Treasurer’s Office’s cash management operations,” concluded Treasurer Pearce.