SunTrust outsourcing 1,500 jobs to Symcor

SunTrust Banks signed a 10-year agreement with Toronto-based Symcor to outsource “a significant portion” of the bank’s back-office banking operations.

As part of the deal, about 1,500 SunTrust employees will be moved out of the bank and 54 positions could be eliminated, a company spokesman said.

In addition, Symcor will handle SunTrust’s check clearing, lockbox processing and statement production functions.

The financial terms of the deal were not disclosed in the statement, nor did the bank disclose possible cost savings as a result of the deal.

The back-office duties will be transferred Aug. 1, affecting SunTrust employees in Orlando; Miami; Baltimore; Atlanta; Nashville and Memphis, Tenn.; Richmond, Va.; and Durham, N.C..

Symcor will buy or lease the SunTrust facilities in those locations, which adds to the Canadian company’s existing operations in Orlando, Chicago, Atlanta, Charlotte and Los Angeles.

Symcor now provides similar back-office services to five of the 15 largest North American banks.

For SunTrust, the latest move is part of the bank’s companywide cost-cutting initiative announced last spring, dubbed Efficiency in Execution (E Squared), company spokesman Mike McCoy said.

Last year, the bank sold branches and office space across its Southeast footprint in a sale/leaseback agreement and cut staffing.”This is consistent with the rest of our E Squared program,” McCoy said.

SunTrust is the fourth-largest financial institution in South Florida, with a 5.63 percent market share, $6.2 billion in local deposits and $8.43 billion in deposits.

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