Author Archives: maggiefinserv

ACI – S1: Making the Cash, Trade and Payments Dream Real

So much for deal stickiness. ACI Worldwide bidding on top of Fundtech for S1. When I blogged about the Fundtech-S1 deal last month I asked the question, “wasn’t this ACI’s dream? ” I wondered why ACI Worldwide hadn’t made a go for S1 considering it’s platform has many of the moving parts ACI Worldwide was missing with its last home-grown attempt at the “global” platform.  Any way you look at either deal, S1 wins. Maybe cash in the hand is worth more than paper.  Fundtech, however, has a robust payments business and clientele and regardless of how this drama ends, I do not believe they will be too bruised by the outcome.  In many ways, the ACI Worldwide deal may be the best thing to keep smaller agile competition and deal targets open.

See Reuters article

New Date – NACHA Webinar on Cloud and Payments Aug 9 at 1:30

Join Maggie Scarborough, FinServ Strategies; Julie Elberfeld, Capital One; and Mary Ann Francis, WIPRO Banking & Financial Services; Vinay Prabhakar,
Bottomline Technologies

Register Now

As mobile burns a billion dollar trail through the technology sector riding on cloud computing, many financial institutions are unprepared for customers  in the CLOUD transacting business.  FI’s must keep customer information private and safe. For this reason, every institution should have a CLOUD strategy regardless of the level of direct involvement.
Join us for this exciting NACHA Webinar. Click here:

SPEAKERS:
Mary Ann Francis, Senior Consultant – Payments, WIPRO Banking & Financial Services
Julie Elberfeld, Senior Vice President, Commercial IT, Capital One Bank
Vinay Prabhakar, Director Global Solutions Consulting, Bottomline Technologies
MODERATOR & SPEAKER:
Maggie Scarborough,
Managing Director, FinServ Strategies

 Register Now

Fait Accompli – Fundtech and S1 Merge ——— Next? One, Two, Core

Maggie Scarborough, Managing Director, FinServ Strategies
June 27, 2011
The Fundtech – S1 merger really isn’t a big surprise to me after covering the online cash management, online consumer and payments spaces for over 25 years. The two were bound to mash up with another entity. In a consolidating bank market, larger scale is needed by both to catch more “ big fish” by serving global and domestic markets with a full suite of information, payments, trade, supply chain and liquidity products. Another scale element of the deal is the ability to serve far more community institutions, more efficiently (they both have SaaS operations in Atlanta). The pair attains both goals by combining S1’s online consumer, small business and corporate banking  and trade platforms with Fundtech’s considerable back-end or core and middle office payments and liquidity capabilities. Wasn’t this ACI’s dream?
Who will dominate and how will it go from here?
Less Choice Creates Opportunities

With fewer online cash management, consumer banking and payments choices for institutions, there is now room for highly competent and global payments and treasury management player, Bottomline Technologies to further spread its wings and for neo-tech Online Banking Solutions (OBS) to further burn into the market. Bottomline Technologies, which serves both global institutions and corporates, will gain even more traction with large and mid-tier institutions that already have core payments capabilities.  The concentration of customers with one super-vendor Fundtech-S1, also leaves room for agile players like Online Banking Solutions (OBS) with their straight through processing architecture and secure browser to leapfrog the current competition with more efficient and scalable solutions built for integration.  Players like Intuit continue to keep their collective eyes on the vision of financial integration with consumers and small business.
One, Two, Core
What about the core banking titans? Fiserv, FIS, Jack Henry, et al. They have all of the banks on their systems, but haven’t done a very good job of integrating and deploying acquired online cash management and online consumer banking. In-house initiatives, while well-conceived, have lost traction. Plus, there is a trail of less than effective past acquisitions, because the vendors acquired simply didn’t have enough scale to compete with the core’s home-grown capabilities, which they typically give away. My instincts tell me that there will be further consolidation and, like so many past mergers in fintech, the merger of Fundtech and S1 may be simply one and two of a three-base play. Hmmm…will there be a part three? What do you think?  Maggie Scarborough, Managing Director, FinServ Strategies, maggie@finservstrategies.com, 301-535-4559.

Clear the Fog About CLOUD and Payments, NACHA Payments 2011, Session 204PB, Tuesday April 5, 8:00-9:15 am

See 3 Experts  Face-Off about Cloud Computing and Payments at NACHA Payments 2011, Austin, Texas
CLOUD & Payments: Let’s Talk Business
Tuesday, April 5, 2011
8:00 a.m. – 9:15 a.m.; Room 17A
Maggie Scarborough,
Managing Director, FinServ StrategiesJulie Elberfeld, SVP, Commercial IT, Capital One Bank
Mary Ann Francis, Sr Consultant, Payments, WIPRO Banking & Fin’l Svcs
Vinay Prabhakar, Director, Global Solutions Consulting, Bottomline Technologies, Inc.
Why does cloud computing remain a mystery? It uses technology to create a business advantage. Cloud computing technologies not only enable efficiency but allow for the extension of services outside the institution’s firewalls and across nontraditional service boundaries and providers. Attendees gain an understanding of the cloud concept and learn about its players, deployment in payments and cash management, risks, audit/regulatory concerns, and business line, as well as customer issues and benefits. Attendees learn potential business benefits, competitive risks, and face-off with a banking strategy consultant, payments expert, vendor, and bank in this exciting presentation-panel combo.