New banks

It’s really expensive to build a new core: Fiserv acquires Finxact

  • Fiserv is acquiring upstart cloud native core banking software provider, Finxact.
  • Fiserv now has the capabilities to bring its clients into the future with API connectivity and personalization capabilities.

Email a Friend

It’s really expensive to build a new core: Fiserv acquires Finxact

What's happening: Fiserv announced yesterday it has signed a definitive agreement to acquire Finxact. Finxact offers a cloud-native banking core as an alternative to other core providers like Jack Henry, Finastra, and FIS. Fiserv was an early investor in Finxact and will acquire the remaining ownership interest for approximately $650 million.

Why's it important: Finxact helps round-out Fiserv's digital banking strategy, sitting alongside the firm's account processing, digital, data aggregation, and payments solutions. As FIs and leading brands outside of finance are taking up technology for embedded commerce, finance and payments, Finxact can help Fiserv provide clients modern, flexible, and personalized digital banking experiences. Fiserv clients will need these capabilities if they want to launch competitive new products and partner with other tech firms.

We're in the process of a slow, multi-year rollout that has banks and other FIs migrating to digital cores. The success of fintechs as alternatives to banks and the pandemic's push towards digital are putting added pressure on banks to move to digital.

  • For example, Jack Henry has been making progress moving its bank and credit union clients, like $25 billion Simmons Bank, to its Banno Digital Platform. 

Finxact history: Founded in 2016 by Frank Sanchez, Finxact's core helps organizations of all sizes launch new products and digital capabilities via a set of APIs. Finxact also offers a marketplace where banks can integrate tech and data firms like Codat, Apiture, and MX.

0 comments on “It’s really expensive to build a new core: Fiserv acquires Finxact”

New banks

Rebundling banking services: Are fintechs trying to be more like banks?

  • Why are fintechs that have grown to a certain size continuing to pursue a banking license?
  • Luis Trujillo, CCO at Alviere sheds light on whether acquiring a license guarantees a successful banking business model for fintechs and if it constitutes a threat to banks.
Sara Khairi | January 09, 2023
Banking as a service, New banks

The Big Bank Theory Conference 2022: All session videos

  • Tearsheet's Big Bank Theory Conference brings together the most innovative players changing the face of the financial institution.
  • Here are the videos from this year's conference, held in December online.
Shabih Rao | December 21, 2022
Modern Marketing, New banks

Embracing ‘side bank’ status: 5 questions with Aaron Wollner, CMO of Quontic

  • As a community bank turned digital bank, Quontic has its own unique challenges in sticking out of the crowd.
  • In this Q&A, CMO Aaron Wollner talks about what’s new in the digital bank’s campaign work and how it’s been shifting its messaging to fit the current financial climate.
Rivka Abramson | October 19, 2022
New banks, Sponsored

Creating a winning neobank strategy through differentiation

  • There is a notable opportunity for neobanks to fill gaps that currently exist in traditional financial services, especially since they are free of the restraints of dated technology.
  • However, to be effective, they must identify a primary differentiator or central mission and then build the user experience around that north star.
Praxent | October 18, 2022
Member Exclusive, New banks

Banking Briefing: Will WFH become a thing of the past?

  • Banks are pushing to get employees back in the office – but what will that do for their efforts to attract tech talent?
  • Meanwhile, gender inequality is alive and well in the banking industry. Here’s what one bank is doing to try and solve that.
Rivka Abramson | September 12, 2022
More Articles