MOORPARK, Calif. – You know you're doing something right as a data processor when a product you developed for your own client credit unions gets so popular with other credit unions that you have to form a separate unit to offer it industry-wide. That has played out for credit union data processor XP Systems, who is no stranger to spin-offs. It was XP employees and financial resources that were behind what eventually became Digital Insight. That was Internet banking, this time it's ATM management solutions. XP, a Fiserv subsidiary, has introduced LynxGate Solutions, which offers a separately branded suite of products consisting of ATM management and electronic funds transfer solutions. LynxGate evolved from the success of XP's CAT (Controller for Automated Tellers) product. "Ninety-percent of our clients have either the intercept version of CAT or the switch-only version of CAT," said XP Systems President John Edwards. In total, 240 CUs are on CAT. Edwards said XP knew it had something special when non-XP client CUs began asking for CAT. The first was a group of ULTRADATA credit unions. XP and ULTRADATA worked on an interface and CAT is now deployed in some ULTRADATA shops. Today CAT interfaces with eight core systems, including three under Fiserv's umbrella – USERS, CUSA Technologies and Summit. "Even though we're sister companies, in some cases we're competitors. We want to remove any doubts or fears of our sister companies that we are using this as an entry into us trying to develop core processing clients," said Edwards. That also makes Tom Neil happy. Neil is president of Fiserv's Credit Union and Industry Products Group, so he's used to juggling each subsidiary's competitive interests with the fact that they are all Fiserv business units. Neil said LynxGate will be strictly focused on ATM software. LynxGate is not it's own company. It's as Edwards described it, "a separate, discreet business unit of XP with its own budget and branding." ATM management solutions are sort of coming of age now, said Edwards, and XP wanted LynxGate to be ready for the future. "Just like we did with our core system about two years ago, we embarked on taking the original version of CAT and rewriting it using the modern language to take advantage of the smarter ATMs," said Edwards. "Credit unions are getting more into individual member management. With the new software we're able to do member customization like individual withdrawal limits. With most older systems there's a flat limit. You can do separate fee structures, and assuming they're not the old ATMs but the new Windows-based ATMs, push customized messages to the members," said Edwards. He said LynxGate even has behavior type processing under development that can offer members ATM shortcuts. For example if a member consistently withdraws say $100 from an ATM, they may find a prompt saying, "Mr. so and so would you like to withdraw $100″ as soon as they enter their PIN. LynxGate will likely do some business with banks, which is another reason to separate it from the XP brand. CAT will be beta tested at Community Credit Union in Plano, Texas on Community's Fiserv CBS core system. Community of course is attempting to convert to a bank. Community is a terrific beta, said Edwards, because it has one of the highest ATM volumes for a credit union that he's ever seen. "On a busy day, they'll have 150,000 transactions through their ATM. It's a very good test," said Edwards. – [email protected]