A Trusted Advisor to Financial Institutions

Upcoming Speaking Engagements

  • March 2018
    • 2: Missouri Bankers: Technology Conference, Lake of the Ozarks
    • 6-8: Georgia Bankers: Operations/Technology Conference, Atlanta
  • April 2018
    • 12: Ohio Bankers League: Operations Conference, Columbus
    • 13: Graduate School of Banking, University of Wisconsin: IT Management School, Madison
  • May 2018
    • 17: Missouri Bankers Association: CFO Conference, Columbia
    • June 2018
      • 8: Massachussets Bankers Association: Annual Bank Technology and Retail Conference, Boxborough
    • July 2018
      • 19: Texas Bankers Association: Senior Management Summit, San Antonio
        • 29 thru August 3: Pennsylvania Bankers Association: Advanced Banking School, Penn State University



    Comments on Fiserv Acquisition of ACI

    A number of you have asked me about implications of the ACI acquisition by Fiserv.  Here are some thoughts.

    By now you have seen news of the acquisition by Fiserv of ACI’s Internet Banking solutions group.  I want to address this at a macro and a micro level.  First, let’s take on the macro side.  The banking software industry has mirrored the banking industry itself, by consolidating.  We now have an oligopoly in banking software – three firms control a majority of the market.  In such an environment, further consolidation is almost inevitable, as the big players seek to drive more revenue from ancillary products.  You will see more of these types of acquisitions, as it becomes harder for third party, best of breed solutions to sell product into banks directly.
    At the micro level, this is a win for Fiserv.  It gives them an integrated product that works across all platforms, and includes both business and personal Internet banking capabilities.  As mobile becomes increasingly important – to both consumers and businesses – demand for enhanced capabilities will increase.  Fiserv’s current setup features distinct products for consumer and commercial, creating an unnecessarily complex delivery channel.  If you are an ACI customer using a Fiserv core today, you may find that your product becomes the main Fiserv offering, rather than being replaced.  When you consider that Fiserv acquired fewer than 600 customers, many of who are Credit Unions, you will see that this was more than just an effort to buy customer base.  The product is important, and that’s good news for ACI customers.

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