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NYMBUS Core banking changes
Have no fear, Nymbus is here to help thousands of US FIs encumbered by some of the oldest enterprise tech still in use
new players enter the core banking systems fray, looking to disrupt incumbents and tap into a hugely lucrative market. One of the highest profile was US-based Nymbus, which now has over 45 customers, acquired from recent acquisitions, that are in the process of converting to its SmartCore core banking platform, with three on track to go live in Q1 2017. In addition, CHROME Federal Credit Union is also rolling out SmartCore, replacing a Jack Henry Symitar system. The solution is offered on a fully hosted basis, with the vendor aiming to take on the well- entrenched, traditional players in the US market, such as FIS, Fiserv, Jack Henry and D+H.
2016
The roots of the offering stem from a sister company, Mediaspectrum, which specialises in the publishing domain and provides content management system (CMS) platforms to media moguls in the US and internationally. USA Today is among its customers. Nymbus’ co-founders are Alexander Lopatine and Scott Killoh, a co-developer and founder of the Openpages CMS (Openpages is now owned by IBM). Killoh is also chairman of Mediaspectrum.
David Mitchell joined the FinTech from Open Solutions, where he served as President and Chief Product Officer of various divisions over a 12-year period, helping it grow to provide cloud-based technologies to approximately 3,600 clients around the world. The company was acquired by Fiserv so it could provide its legacy customers a migration path to a more modern solution at the time.
“Unfortunately, that system is already 20 years old and my passion to help community banks and credit unions is why I joined Nymbus,” says Mitchell. “The leaders of community banks and credit unions must recognise
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saw a number of
that we are experiencing significant changes in the way financial services are consumed. The customer expectation is not the community bank down the block, the customer expectation is Amazon. Now is the time to drive innovation, lower costs and allow community- based financial institutions to continue to be the pillars of our communities. Technology to compete is the only path.”
All of which sounds great, but the world is not exactly short of FinTechs claiming they will shake up the banking sector. The crunch question: what has been the reaction from US banks and credit unions thus far? Is it fair to say SmartCore is not suitable for everyone? The vendor, for instance, initially pitched to larger FIs, but found that their sales cycles and decision-making processes were too long. So it changed tack and is now targeting community banks and credit unions that have less than $10 billion in assets as their primary market. There are more than 12,500 such FIs in the US alone, Mitchell notes.
“The core banking market currently has a huge pent up demand for cloud-based enabling technology,” he adds. “Core banking changes over the last 10 years have been flat and usually viewed as a high-cost, high-risk undertaking. In addition, moving from an old legacy platform to another legacy platform is not a viable option for community banks and credit unions. FIs have basically been held hostage by the current industry vendors with no agility to address the digital consumption of financial services that consumers demand and no ability to reduce the high cost of their current technology. All of these factors are now driving more FIs to build a business case for a technology
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