The Johnston, Iowa, debit network Shazam Inc. is in the final stages of changing its switching platform from a International Business Machines Corp. system to one built by Hewlett-Packard Co.
Shazam, one of the last debit networks still owned by its member banks, has used the IBM platform since it was formed 25 years ago, Terry D. Dooley, a senior vice president and Shazam's chief information officer, said in an interview Friday. His father, Dale Dooley, founded Shazam and recently retired from it.
IBM's technology has served Shazam well, but the platform had to be shut down if Shazam wanted to expand its processing capacity, Terry Dooley said. Hewlett-Packard's platform is more flexible and will let Shazam expand processing capacity "on the fly."
The purpose of the change is to "make us more competitive, to bring new products and services to market faster," he said.
Shazam expects to complete the two-year conversion project this year. About 700 member banks have been converted so far; about 1,000 are left to convert. Mr. Dooley said that the transition would not result in any cost increases for the member banks.
Several competing debit networks, including Star Systems, NYCE, and Pulse EFT Association, have moved away from the bank-owned association model, and have been purchased by public companies in the past few years.
However, "Shazam has no plans to change its philosophy or its ownership structure," Mr. Dooley said.
