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related and went to FSS (Jameson Bank), Murex (which had previously signed Canada Pension Plan Investment Board and RBC Investor Services in 2008) and Wall Street Systems. In 2011, the TCM deals saw FSS gaining Questrade and Calypso winning BMO Financial Group. In 2012, there were just two TCM deals again, one being foreign currency specialist, Calforex, signing with TwoFour, and the other going Murex’s way (an off-the-record deal). There was relatively more calm in 2015, with just 2 deals being reported, one for the Temenos T24 product, and the other for MX.3 by Murex.


US – Domestic Suppliers


Turning to the domestic US suppliers, after three moribund years, the US banking systems sector has gradually picked up since the start of 2010. Nevertheless, the heady days of large numbers of ‘de novo’ start-ups are long gone, so the US core systems market is, by definition, almost exclusively one of replacements. Indeed, the US banking software market has witnessed a diminishing number of potential customers. The Federal Deposit Insurance Corporation showed


the actual number of institutions had fallen to 6450 by early 2015, compared with 6891 at the end of Q3 2013 and 7181 at the end of Q3 2012. However, the value of assets had grown, to $15,650 billion in early 2015, compared with $14,596 billion in Q3 2012 $14,223 billion in Q3 2013. As well as all of the usual reasons for replacing a core


system, a number of systems are now at the end of their lives, in part due to the consolidation among suppliers in the US. Banks seem perfectly willing to move from one supplier to another if they perceive a better proposition and so many have not merely taken the replacement route that has been proposed by the incumbent supplier. This has ‘unlocked’ some user bases. FIS’s Miser system, Fiserv’s SourceOne and the TriSyn system, now residing with Infor, arguably fall into this category. As mentioned, Zions Bancorporation has gone beyond the tried-and-tested and is replacing TriSyn with Bancs. The other half dozen or so users of this old system (including BB&T) are seemingly watching the situation. We put the estimated number of US deals in 2009 at 300,


rising to 340 in 2010 and 380 in 2011, with a similar likely gradual increase in 2012, 2013 and 2014.


2011


After a modest but discernible pick-up in the US market in 2010, the momentum was maintained in 2011, including among higher-end banks and credit unions. Among the more sizeable deals of the year was the acquisition of Fiserv’s Signature (ICBS, as was) and a range of other software by Fulton Financial Corporation, with $16 billion assets and 273 branches across five states. Fiserv appeared to scoop the largest deals on offer


in 2011. It gained City National Bank of Florida ($4 billion assets), following on from 2010’s Signature win in the same state from BankUnited ($11.1 billion). It retained 1st Mariner Bank as a customer after this bank did a full selection to replace Fiserv’s SourceOne core system, which is at the end of its life. The bank opted for Premier, with FIS beaten at the shortlist. In the credit union space, Fiserv’s Acumen (pre-2009,


iSpectrum) credit union system entered the US market in 2009. Until then, it had been sold in Canada and this is where it originated, having been developed for Alterna Savings between 2002 and 2005. In the US, Fiserv marketed it to credit unions with assets over $500 million, both existing clients of Fiserv (mainly users of Spectrum) and new-name ones. It was offered on an onsite deployment basis or on an ASP model, and was promoted by the vendor as a technologically modern, fully Java-based offering. By the end of 2011, it had gained around ten takers in the US and double that in Canada. 2011 brought five Acumen deals in the US. The smallest


taker was Minnesota-based Trustone Financial Federal Credit Union, with $684 million in assets, and the largest was Suncoast Schools Federal Credit Union in Florida, a $5 billion institution. Suncoast Schools FCU signed for the system in Q4. Of Spectrum ‘converts’, there was Travis Credit Union ($1.9 billion) in California and Navigant Credit Union ($1.2 billion) in Rhode Island. Gary Furtado, CEO of Navigant, said the credit union needed a modern IT platform to compete with top-tier players such as Bank of America and Citizens Bank (which is based in Rhode Island). It went through an extensive selection process and having evaluated five ASP offerings from different vendors, settled for Acumen. In mid-2011, Texas-based Randolph-Brooks Federal


Credit Union (RBFCU), one of the top 25 credit unions in the US with $4.3 billion in assets, became a new-name win for Fiserv. The vendor beat off competition from Open Solutions with its DNA platform (subsequently acquired by Fiserv). Acumen was taken to replace a 35-year old in-house development at RBFCU. Another notable 2011 taker was the aforementioned Rhode Island-based Navigant Credit Union ($1.2 billion in assets), but unlike RBFCU, Navigant opted for an ASP version of Acumen. This all looked like pretty good progress given the Acumen breakthrough in the US


Market Dynamics Report www.ibsintelligence.com 245


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