CEO, Jack Kuntz, cited the ‘quality and integrity’ of the staff and senior management at D+H as one of the key factors in their decision. Fiserv, CSI and Smiley Technology were also evaluated as well as the incumbent provider.
For Jack Henry, 2014 brought a contract with Christian
Community Credit Union in California, for Episys. This credit union was once set to be the pioneer of Fiserv’s now defunct Acumen core system.
There were more than just disgruntled noises about this,
with one customer, Wildfire Credit Union, taking Fiserv to court over the alleged unfulfilled claims and promises made by the vendor. Wildfire was originally interested in replacing its legacy Symitar core system with Acumen, but had to settle for DNA as a processing engine, with Acumen’s front-end (as Fiserv promised to keep the development of this part of the system). In its court filing, Wildfire stressed the importance of having the latter component: ‘Acumen UI was very clean and elegant looking, while from the beginning DNA UI looked convoluted and confusing’, adding that it would not have been interested in DNA otherwise. However, the Acumen front-enddid not materialise and neither did a promised referral feature in DNA that was supposed to be ‘better than Symitar’, according to Wildfire. The credit union was also dissatisfied with the project team that the vendor supplied, and having reached the end of its tether, it terminated the contract and asked Fiserv for a refund. Fiserv refused and Wildfire went to court in late 2014.
Meanwhile, Merchants Bank, a community bank in Vermont
with $1.7 billion in assets, migrated to Jack Henry’s Silverlake, ousting Fiserv’s Signature that it had been using for 23 years. Zoe Erdman, SVP and senior operations officer at Merchants Bank, said that the bank needed an ‘easy to use’ system and a set-up that had ‘as many applications as possible belonging to the same supplier’, plus a vendor that could offer a ‘robust data centre and disaster recovery’. The bank’s shortlist was conventional: FIS, D+H, Fiserv and Jack Henry.
For FIS, there was Yadkin Bank, a $4 billion regional bank in
North and South Carolina, that went through a technology standardisation project as part of its merger with another domestic bank, Vantage South Bank. Vantage South was a long- standing user of FIS’s Integrated Banking System (IBS) and a decision was taken to stay with FIS once the two banks were unified.
FIS has been making progress of late with its plans to
gradually renew its wide range of financial services applications, starting with the IBS product. It has recently introduced an initial component into its US bureau business, cutting over with the customer management element in one large data centre. This is for the service underpinned by IBS,
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FIS’s platform for mid- to upper-tier domestic banks. Next on the agenda for this is the Profile core system, which FIS sells both in the US and internationally.
2015 Domestic players have also been active with in organic
growth– the FIS acquisition of Sungard and D+H acquisition of Fund tech last year reflecting the spirit of consolidation. The US market, and FIS in particular, are not new to M&A. FIS had invested in Alltel, earlier in 2003, who had acquired Systematics much earlier. Similarly, Sanchez who had earlier acquired Profile, saw itself being bought by FIS too. The big game changers of course, was the acquisition of Metavante by FIS in 2009, and now the Sungard acquisition.
Jack Henry leadsthepackwith21 new deals for its Episys
product, all of them being sold to Credit Unions and accounting for almost half the total deals for this supplier. 4 of these were sold on hosted model. This includes the sale to the credit unions of APCI in Allentown, Freedom CU at War minster and the TEG in Poughkeepsie, NY. The product was also adopted on a licensed basis by Shell FCU and TEG FCU.
The next bestseller for the supplier was its Silverlake
solution, primarily focused with banks. More importantly, all its 14 deals barring one were on hosted basis. First Premier Bank and Fox Chase bank are some of the notable deals last year. The Cruise net solutionfetchedthesupplier6 credit union new name customers, while both Core Director and CIF 20/20 had 1 sale each. In all, 23 of the total deals of this supplier were on hosted basis.
IBS solution from FIS was these cond best-selling product in
the US domesticmarket,with15deals,all of them being to Banks and on licensed basis. This is a sharp increase from just 6 deals in the year before. Closely followed this is the Horizon product with 14 sales, a sharp decline from the 25 it had in 2014. 2 of these were on hosted basis, and the rest were on licensed model. The syndicated lending product, ACBS with 13 deals was also a hot selling product of the supplier. While Profile product had 3 deals, Bank Pac, Mercury and Systematics products had 2 deals each. The other 2 deals were shared by Miser and Treasury Management product respectively.
Meanwhile, Data Pro with its e-IBS product had reported
two sales, both at Puerto Rico to State Trust Int’L Bank & Trust and to Bi Puerto Rico Int’L Bank. The other key US domestic vendor, D+H clocked 7 back office related system deals, 6 of them for its Phoenix EFE product. 4 of the 7 deals were on a hosted basis. The supplier’s recent acquisition of Fundtech is quite strategic and is expected to drive its growth in the payments sector significantly, both in the US market as well as globally.
Market Dynamics Report 2017 |
www.ibsintelligence.com
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