Progress in North America and restructuring


The company made reasonable progress at home in 2007. There was the vendor’s largest deal at the time, at Flagstar Bank, the 16th largest thrift in the US with $15.4 billion in assets (the bank later sold parts of its network after the financial crisis hit). It was a strong year for the TCCUS version, with higher-end customers comprising Redstone Federal Credit Union ($2 billion in assets), Texans Credit Union ($1.9 billion), State Employees Credit Union ($1.7 billion), and Vacorp Federal Credit Union ($1.4 billion). A stand-out deal came at Arizona-based First Magnus


Federal Bank (FMFB), which reversed a decision to implement the Flexcube retail solution from I-flex (later Oracle FSS), and signed instead with Open Solutions. The decision to cancel the Flexcube deal was thought to have been a mutual one, based on the bank’s expectations for implementation. However, FMFB went out of business in 2008.


In one other development at this time, it was announced


that Wolters Kluwer Financial Services’ Wiz Sentri Bank Secrecy Act (BSA) and AML solutions were to be integrated with Open Solutions’ platforms. The ASP-delivered products offer automated workflow for BSA/AML compliance through data aggregation and centralised storage and archiving. The deal came about through a number of joint customers where the two sets of products had already been successfully integrated. ‘This solidifies that relationship so Open Solutions has a bigger financial gain from working with Wolters Kluwer,’ said Hernandez. Open Solutions also partnered with some of Wolters Kluwer’s competitors, but not on a formal basis. 2008, however, was not as fruitful. In a much quieter home market, hit by the sub-prime crisis and then general financial


DNA and DNAappstore


TCBS/TCCUS also went through a revamp and rebrand. The ‘total refresh’ process took place between 2006 and 2008 and had an investment of $100 million. The rationale of this enterprise-wide transformation, said the company, was to facilitate Open Solutions’ growth in the following ten to 15 years. The TCBS/TCCUS system was converted from the client- server application to a Microsoft .Net core processing platform with Oracle relational database. Nine different lines of source code were consolidated into one. The only thing that remained unchanged was the system’s financial data model, with ‘the entire new system built around it’, according to McGourty. The vendor then offered the new software, called DNA, to the TCCUS/TCBS users for free, with a two-year window to upgrade. The company wanted everyone to be on the same platform so that it didn’t have to maintain multiple systems and decide which systems to invest in for the future, explained


118


McGourty. By mid-2011, all but 20 Canadian credit unions (on Celero’s Eroworks) were on DNA. The remaining credit unions were due to migrate to the new platform before the year-end. G&F Financial Group was the first institution in Canada to go live on DNA. It had been an Open Solutions user since 2006 and went live on the new version in April 2010. According to the group’s CEO, Richard Davies, the upgrade had brought ‘increased functionality and flexibility, improved workflow and efficiencies, and a 360-degree view of our members’. There was also now another version of DNA, CUnify, which was aimed at very small credit unions in the US, with under $100 million in assets. A major differentiator from competitors, according to Open Solutions, was that it now came with a DNAappstore, an international community of DNA users that collaborate, develop and share various applications and functionality


Universal Banking Systems Market Report | www.ibsintelligence.com


meltdown and recession, Open Solutions nevertheless picked up the largest credit union win of the year, at Washington DC- based Bank Fund Staff Federal Credit Union, with $2.5 billion in assets. The credit union took TCCUS to replace a system from Harland. Other deals were at Los Angeles Firemen’s Credit Union ($800 million in assets) and Seattle Metropolitan Credit Union ($502 million). In 2009, which was characterised by a continued depressed


US market, with far fewer start-up banks and selections as a whole than in the past, Open Solutions had the largest new credit union win of the year in the form of USAlliance Federal Credit Union. The New York-based institution took the Open Solutions platform to replace a proprietary system. However, in a sign of the times, vendors did not claim a win at any credit union with more than $1 billion in assets. In total, Open Solutions claimed 26 new core deals and 55 core renewals, worth a total of more than $96 million. By this stage, the vendor was signing domestic deals twice as quickly as many of its competitors, according to research from Aite Group. There had also been a restructuring of the company,


with the creation of five departments to replace a fairly large number of relatively autonomous units. There was a pruning of US offices and a reduction in headcount from around 2000 to 1700. A separate payments spin-off was set up, specialising in the North American ATM/POS market. In summer 2011, it was bolstered by the acquisition of the assets and staff of Calypso Canada, a local provider of communication and processing services for ATMs. As a result, the total number of devices on Open Solutions’ ATM network exceeded 12,000.


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