Partnerships
For a while, Unisys loomed large, with Dovetail intended to provide a key component of that company’s Open Payments Platform (OPP). Unisys effectively switched from Clear2Pay, as mentioned, having chosen this supplier in 2006 for precisely the same role. Rein Geerdes, Unisys’ business development head, payments solutions and services, said only that Unisys was still available as a system integrator for Clear2Pay projects. Dovetail’s solution was taken to form the payment hub for OPP, alongside solutions from Oracle for reporting and Business Intelligence, Sterci for Swift and Distra for high volume messaging. Unisys felt Dovetail’s single platform and architecture was superior to those of its competitors. In addition, Dovetail’s focus on being a development shop meant it complemented Unisys’ systems integration and services skills. Unisys also planned to use the Dovetail system to support a hosted European mandate service for SDDs, as an extension of its Payment Services and Solutions outsource centre in the Netherlands. This service had been announced back in December 2007, once more with Clear2Pay at the centre.
Strategy
As mentioned at the time the investment from ViewPoint was announced, Coen saw a pick-up in activity in the second half of 2010 and a general ‘maturity’ of views among buyers relating to payment services hubs. There was an understanding of what constituted such a hub, he felt. He believed there was ‘almost consensus’ that it made sense for the payment services hub to span both high- and low-value, except perhaps for domestic ACH. He also foresaw cards being brought into this, albeit perhaps with this three or four years away. Dovetail had started to do more pre-configuration of its system, along the lines of a ‘model bank’ configuration, and also felt that a key focus would be its liquidity management solution. The company was claiming signings or late stage contract negotiations at around the time of the ViewPoint announcement with three major banks in Europe, one of which was for intra-day liquidity management (believed to be RBS) and two for SEPA payments.
Dovetail was at the same stage with two banks in North America, said senior vice president of sales and marketing, Paul Morris. At least one of these resulted in a signing, from a large US domestic bank, albeit with Dovetail having been unable to release the name due to a rigid NDA component within the contract. This was claimed by Dovetail as a Fundtech replacement. In Europe, those banks that put in ‘patchwork’ solutions
for SEPA were now struggling as volumes increased and as corporates pressed for value-added services, he believed. In North America, there was no SEPA-type catalyst but the view from Dovetail was that banks were starting to move. One of those in the pipeline with Dovetail was focused on Fedwire; the other was looking at Fedwire and
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In fact, there were no discernible tangible results from the partnership and Unisys is no longer listed as a partner by Dovetail. There are a few services partners, including Capgemini, Accenture and Polaris, but this tends to be on a case-by-case basis. The relationship with Logica provided revenue for Dovetail, particularly in the US, although there was some friction at times, as Dovetail was not always in agreement with the positioning of its system purely for ‘high-care’, low volume. Dovetail received a royalty on all deals and there was a legal obligation for Logica to identify the Dovetail engine in all LAPS High Care initiatives. although it did not always remember to do so, leading to ‘discussions’ between the two vendors. Two deals for Dovetail via Logica in late 2010/first half of 2011 were from Banco Popular de Puerto Rico and, it was believed (although neither supplier would comment), the bank for the US military, USAA Bank. Following the takeover of Logica by CGI, the partnership seemed to settle down and, in Q2 2014, there was at least one joint bid with Dovetail leading with its platform for both high- and low-value payments and with CGI bidding for the services part of the contract.
international payments.
Asia was also starting to pick up. Traditionally, there had been quite a few ‘false-starts’ here, with banks having major aspirations but not turning these into projects. ‘Now they are a bit more pragmatic about what they want to do,’ said Morris. Dovetail opened an office in Singapore in 2013, although the bulk of its work in the region at this time seemed to be for the international operations of its large US and European customers, with work still underway to break into domestic players.
Coen said in late 2012 that Dovetail would have a 30 per cent increase in revenue in the year and was continuing to recruit, thereby somewhat bucking the market trend. He expected similar growth in 2013. The supplier had experienced a couple of cut-overs around this time, at Banca Intesa SanPaolo (see below) and ING in Luxembourg, both for SEPA, and seemed to be benefiting from its delivery record. It did sign KBC Bank in Ireland in early 2013 (see below) but did not announce any new signings during the rest of the year or the first quarter of 2014. However, as well as the aforementioned US domestic win, it is known to have gained two large domestic Canadian banks as takers, following on from a win at Bank of Montreal in 2012 (see below). One of the additions was believed to be RBC, for a ‘smart middle office’ solution and with an initial cut-over in Q1 2014, linking to a range of systems, including Bess. There was thought to be a first cut-over in May 2014. The other signing was believed to be Desjardins, the largest cooperative financial group in the country, with $212 billion in assets. While no one from the supplier or bank was willing to comment once more, it was believed to be centred on an enterprise-wide payment hub, with the project only recently under way in Q2 2014. This was to primarily replace an in-house developed system.
Payment Systems & Suppliers Report |
www.ibsintelligence.com
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