The Bank of Butterfield is outsourcing management of both its internal and external mail service for its Bermuda offices to Proserve Bermuda Ltd., a decision that the bank said would affect four staff.

The bank said mail staff were being given the option of taking a severance package or applying for alternate employment either with Proserve or the bank.

Proserve is an independent company that was jointly formed by both the Bank of Butterfield and Bank of Bermuda to handle "non-strategic functions such as digital imaging and cheque processing," according to the Bank of Butterfield.

But in the case of the Bank of Butterfield, Proserve had also taken on such tasks as printing, inserting and some mail functions. Now Proserve will be responsible for the management of all incoming and internal mail processing and distribution as well as the bank's outgoing mail services.

Butterfield CEO Alan Thompson said: "Bank of Butterfield is continuously looking for ways to improve efficiency and customer service.

As Proserve has been handling most of the bank's external mailings for over a year, it is a natural progression to grant them the contract for the entire mail services function.

"This consolidation will result in improved efficiency while retaining a high level of service with all our mail deliveries," Mr. Thompson said.

The Bank of Bermuda said it continued to handle its mail services internally and had not made any plans to outsource that task to Proserve.

Meanwhile, Proserve general manager Granville Gibbons pledged to provide the Bank of Butterfield with "efficient and effective outsourcing services."