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3 years, where the deals have moved from 52 in 2014 (44 in 2013) to 54 deals last year. Kenyan and Nigerian banks have made 7 investments each, followed by Angola and RSA with


Sales League Regional Comparative | 2011-15


4 each. Regulations, and keeping with the market place can clearly be seen as a primary driver in pushing this adoption, especially in this market.


2. Supplier consolidation:


It is not uncommon to see suppliers acquire rivals or providers with complementary solutions and/or services. Sometimes the product sets have been maintained, sometimes they have been rationalised. FIS, Sungard and Temenos are examples of acquisitive suppliers who look for investing in targets with complementary and competing offerings. From time to time, therefore, change also tends to be enforced by a supplier. This is most stark where it ends its support for a system, usually as a result of consolidation (some US banks have faced this as a result of mergers and acquisitions over the last few years; users of the Financial Objects-derived IBIS and ActiveBank, Actis-derived Paba/Q and Viveo’s systems have faced a similar situation as a result of acquisition by Temenos). On many occasions, the banks do not quietly succumb


to whatever replacement system is being touted from the supplier but will use the opportunity to look at the market as a whole. This might also occur where a bank is looking at a major upgrade to its existing system. Misys’ push of its revamped OpicPlus, for instance, prompted some users to look elsewhere. It should also be noted that systems have often been sold on a fixed term basis (maybe ten years), which brings a decision to upgrade or replace at the end of this. While supplier consolidation can often result in a


system being killed off or, more commonly, losing focus, profile and momentum, it can occasionally be a positive


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development as well. The acquisition of Australian supplier, FNS, by Indian giant, TCS, fell into the latter category. The TCS/FNS proposition became considerably stronger than that of FNS on its own, with the parent bringing large R&D and delivery capabilities. Subsequent sales at Bank of China and Banco Pichincha in Ecuador were clearly influenced by the TCS ownership. In 2007, TCS brought its financial services applications into a dedicated business unit, TCS Financial Solutions, and this continued to perform strongly with both the FNS-derived system and the Quartz system in 2008. Temenos has largely focused on acquiring user bases (Financial Objects, Actis, Viveo, as mentioned). Oracle’s acquisition of Temenos’ key rival, I-flex, was


highly notable and the first instance of a major technology company coming ‘off the fence’ in the core banking space by acquiring its own IPR. The deal caused consternation for those core system suppliers that had previously viewed Oracle as an independent technology partner. The deal has brought greater reach and increasing incorporation of Oracle components with Flexcube, plus a reversal of I-flex’s position on partners, whereby it sought to provide all services itself. On the downside, it could be argued that there has been some loss of focus, with a watering down of the previous strong I-flex culture and drive, as well as a hike in price. Since then, the largest consolidation has come in the US, with the announcement in April 2009 of Fidelity National Information Services’ $2.94 billion takeover of Metavante, bringing together two of the four American heavyweights


Market Dynamics Report www.ibsintelligence.com


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