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It was more than 20 years ago when a young chartered accountant by the name of Bill Loewen, while employed at Ideal Brass Company, a Winnipeg-based furniture manufacturer, noticed that the data processing people refused to recognize that automated payrolls could be handled more efficiently and effectively by independent service bureaus. Computer programs were long and unwieldy they said (this was 1967, remember), the number of forms and cheque requirements made payroll jobs too complex and most of the big payrolls in town were already well in hand. But Loewen's eye was not on the corporate giants; rather he saw great potential in smaller to medium-size payrolls.
He searched in vain for this type of company, but finding nothing to his liking (he turned down a few franchise opportunities in the accounting field), he devised his own computerized payroll system, launching it with the help of Fidelity Trust. "I approached various financial institutions about a payroll system in which all cheques would be drawn on one bank account," he recalls. "Fidelity Trust showed the greatest interest and agreed to help me with my proposal. Really, without their help and faith in me, I'm not sure I would have been able to get off the ground at all. They were invaluable to our efforts."
The key to the whole concept was the cheque -- the ability to draw on one bank account maintained by the service company. Other service bureaus were preparing payroll cheques but they were drawn on each client's own bank account. Loewen's fresh approach increased the efficiency of computer operations since fewer forms and fewer transactions were necessary. Customers were also saved the tedious aspects of payroll management such as signing cheques and reconciling bank accounts.
In addition, the Comcheq concept produced greater financial efficiencies by buying cheques and forms in large quantities and providing clearing services for cheques. The net result was more service for less money. Comcheq made its money (the grand sum of $1,494 the first year) by levying a service charge for payroll preparation and by collecting interest on money that customers deposit in the company's payroll trust account.
That was over two decades ago. His entrepreneurial drive, astuteness and shrewd business decisions during these years have combined to...