FIS also has the wholly-owned, Metavante-derived
subsidiary, NYCE Payments Network, LLC, which has an ATM and point of sale network, plus NYCE Direct Bill Payment service, offering online bill payment via customers’ deposit accounts.
And there are niche solutions such as FIS Healthcare
Remittance Manager, also derived from Metavante, a data bridge between insurers and medical providers, electronically capturing, reconciling and processing US healthcare payment information. In terms of delivery, FIS supports licence and outsource models for all of its applications. Understandably, FIS is keen to emphasise the importance of the payments ‘architecture’ rather than the specific platforms, with one weakness being the age and technology of some of its offerings. This argument is stronger on the hosted side than for in-house solutions, although there are still plenty of banks that continue to look favourably on the IBM mainframe and even HP NonStop for very high processing. The trend, according to FIS, is more towards hosted, in part due to a desire to hand over responsibility for ever-more severe compliance requirements.
An indication of where FIS was seeking to head with
delivery of its services came in 2006 in the form of a definitive agreement with Banco Bradesco and ABN Amro Real to form a joint venture company to provide outsource processing services to card issuers in Brazil. Although a country-specific initiative, this reflected FIS’s overall strategy to take its processing capabilities outside its domestic US market. The Brazilian joint venture followed Fidelity’s recent acquisition of domestic outsource provider, Sistemas de Informacao (Sysin). This was a relatively small, privately held company with a strong consumer lending product. It had over 20 customers, comprising domestic banks and the Brazilian operations of international banks, including ABN Amro Real,
Strategy
Fidelity has put in place a strategy for integrating its myriad payment systems. This is centred on a ‘wrapper’ approach, using the Cortex system. Cortex is intended to provide a web services layer and standard look and feel. Functionality is being moved into this layer so that the back-end systems will increasingly become pure transaction engines. Work started in 2009. A first phase provided a single view
across the Base2000 credit card system and Connex switch system. The precise schedule was in part being driven by commercial considerations. For instance, in August 2010, Fidelity was bidding for the first time with the IST credit card system alongside Cortex at a situation in Latin America. If successful, this would speed up the wrapping of this engine, said Fidelity’s MD of payment solutions, EMEA, Ian Benn, at the time. This deal duly occured, coming at Banco Popular in the Dominican Republic and comprised IST/ Switch, IST/ Clearing, Data Navigator, Fraud Navigator and Cortex. Subsequently adding to FIS’s delivery capabilities are the
resources of Capco, a $292 million purchase in November 2010. This was clearly something of a departure from FIS’s
Barclays, Citibank, Deutsche Bank and HSBC. The Sysin offering is only really applicable to Brazil,
supporting specific requirements of this country, including peculiarities of installment lending. However, Fidelity planned to sell other systems into the market, including its Touchpoint delivery channel platform. With the merger with Certegy, which had 1500 staff here, Fidelity now had a stronghold in the Brazilian banking market. The joint venture company is called Fidelity Processadora e Servicios (FPS); Fidelity took 51 per cent, with the remainder owned by the two banks. Fidelity said it was expecting revenue of $2 billion over the next twelve years. It said it would invest $100 million over the next couple of years, with $25 million in the first year. Ownership of its existing card operation was transferred across. When conversions were complete, scheduled for the next 24 months, it expected to be processing more than 20 million cards in Brazil.
By mid-2010, FPS was working to complete the conversion
of Bradesco’s 14 million bank cards, set for the fourth quarter of the year, bringing the total number of cards processed on behalf of all FPS clients to more than 40 million. Banco Bradesco’s ownership was now 49 per cent, taking over Banco Santander’s stake (Banco Santander had gained ABN Amro Real with other parts of the Dutch bank). In October 2015, The Clearing House (TCH) teamed up with FIS to deliver a new real-time payment system for the US. The latest development demonstrated TCH getting serious about the new system. US-based FIS will provide the infrastructure, and earlier this week TCH said UK-based Vocalink would help build and deliver core elements. In designing the capabilities of the system, TCH claimed it made consumer protections a priority and intends for the new system to be compliant with the Consumer Financial Protection Bureau’s (CFPB) ‘Consumer Protection Principles’ for faster payment systems.
product-oriented acquisitions. Capco had around 1000 staff, with a focus on financial services. It had partnerships with a number of application providers but nothing formal on the payments side, although it had worked on projects involving, among others, Fundtech and Clear2Pay.
As mobile banking, mobile payments and internet payments have started to converge, mobile network providers have responded by establishing joint ventures. In 2011, FIS joined one such conglomerate of major financial services players – Intelligent Environments (IE), Visa Europe and Wave Crest – to deliver the payments and processing systems upon which mobile giant O2’s mobile wallet service was to be based. FIS provided the transaction processing and the UK- based call centre for both the prepaid cards and mobile wallet. It also provided the interface to the open-loop system through Visa and delivered the links to the incoming transactions from ATMs, POS devices and connections to Paypoint and ePay. Visa Europe’s role was as the payment network provider for both the wallet and prepaid products, the front-end of the platform was provided by IE, and Wave Crest provided and operated the core banking platform upon which the prepaid card and mobile wallet services were to be run.
Payment Systems & Suppliers Report |
www.ibsintelligence.com 161
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196 |
Page 197 |
Page 198 |
Page 199 |
Page 200 |
Page 201 |
Page 202 |
Page 203 |
Page 204 |
Page 205 |
Page 206 |
Page 207 |
Page 208 |
Page 209 |
Page 210 |
Page 211 |
Page 212 |
Page 213 |
Page 214 |
Page 215 |
Page 216 |
Page 217 |
Page 218 |
Page 219 |
Page 220 |
Page 221 |
Page 222 |
Page 223 |
Page 224 |
Page 225 |
Page 226 |
Page 227 |
Page 228 |
Page 229 |
Page 230 |
Page 231 |
Page 232 |
Page 233 |
Page 234 |
Page 235 |
Page 236 |
Page 237 |
Page 238 |
Page 239 |
Page 240 |
Page 241 |
Page 242 |
Page 243 |
Page 244 |
Page 245 |
Page 246 |
Page 247 |
Page 248 |
Page 249 |
Page 250 |
Page 251 |
Page 252 |
Page 253 |
Page 254 |
Page 255 |
Page 256 |
Page 257 |
Page 258 |
Page 259 |
Page 260 |
Page 261 |
Page 262 |
Page 263 |
Page 264 |
Page 265 |
Page 266 |
Page 267 |
Page 268 |
Page 269 |
Page 270 |
Page 271 |
Page 272 |
Page 273 |
Page 274 |
Page 275 |
Page 276 |
Page 277 |
Page 278 |
Page 279 |
Page 280 |
Page 281 |
Page 282 |
Page 283 |
Page 284 |
Page 285 |
Page 286 |
Page 287 |
Page 288 |
Page 289 |
Page 290 |
Page 291 |
Page 292 |
Page 293
