FIS
Jacksonville, USA
Bankway, IBS, Horizon, Mercury, BancLine, BancPac, Miser, Profile, Systematics » FIS is one of the two largest core vendors in the US » Large portfolio of systems for financial institutions of all types and sizes (community banks, credit unions, commercial banks, regionals, etc.)
» Available as an in-house deployment and on a hosted basis » Wide range of ancillary applications
Bankway, IBS FIS
This entry covers the two systems, Bankway and Integrated Banking Services (or Solutions, or Suite – the ‘S’ wasn’t always consistent), that were gained by FIS when it bought Metavante in 2009.
The Bankway core banking system originated within
Kirchman, which had been founded in 1970 by Ken Kirchman. Bankway was the latest iteration of its core system and had been launched in 2001. It ran on OS/400 for the IBM AS/400 (now the IBM iSeries), MVS, and Sun Solaris Unix operating systems. It included modules for ATMs, telephone banking, internet banking, and ACH. At the time of the takeover by Metavante, privately held
Kirchman, based in Orlando, Florida, had 800 customers, mostly in the US, and 350 staff, plus small operations in Prague (Komercni Banka was the highest profile overseas user of its system) and Manila. It became a wholly owned subsidiary of Milwaukee, Wisconsin-based Metavante, which was itself a subsidiary of Marshall & Ilsley, which was listed on the New York Stock Exchange. As well as Bankway, Metavante had the IBS system. Today,
this is offered on an outsource basis, which is more or less how Metavante had come to offer it, as the hosted option alongside the licence-based Bankway. The IBS-based service covers
Evolution under Metavante
Metavante now came to position the Kirchman systems as its package offerings alongside its own largely service bureau-based processing services. It also had a range of applications in areas such as electronic bill payment and presentment. The new owner continued to gain deals for both systems. An early Bankway win was at Security Exchange Bank in the US, to be hosted by Brasfield Data Services in Alabama.
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payments, deposits, lending, card processing, accounting and reporting, risk and compliance, sales and service, imaging, data warehouse and analytics, and cash management. There was a good revenue stream for Metavante from
the core system business. For instance, in 2004, it claimed 48 contract renewals for IBS and 62 renewals for Bankway. Metavante secured 20 agreements with de novo banks, with a total of 57 new core processing contracts. The takeover of Kirchman was something of a u-turn by Metavante. Metavante had previously owned the Eastpoint core banking system (a rival to Bankway) but had sold this to a group of users. At that time, Metavante had said that the back office software sector was not its core business. FIS bought Sungard in Aug 2015, for $5.1 billion. FIS paid combination of cash and stock that values Sungard at $9.1 billion – including debt. This created a company with more than $9.3 billion in annual revenues. With this new purchase, FIS has gained a presence in the treasury and capital markets space, which was Sungard’s domain. In April 2017, FIS sold its Swiss core banking software
business, Ambit Private Banking, which it had inherited from the acquisition of Sungard, to Switzerland-based New Access Banking Software.
Metavante fairly quickly added to its product set, including acquiring US-based Prime Associates, a provider of AML and compliance software.
In fact, Metavante then also acquired Brasfield, for $15 million in stock, with this finalised at the end of 2005 and providing Metavante with its own bureau version of Bankway. Brasfield provided processing to 46 community banks located primarily in the south-east US and using Bankway. Reflecting the buoyancy of the market, at least 14 clients were de novo
US Financial Services Technology Market Report |
www.ibsintelligence.com
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