By Art Gillis

I really believe in expert services, so rather than a visit to a Web site that offers do-it-yourself healthcare, I make the huge effort of going to my doctor - twice a year whether I need to or not.

The first question in the usual examination process was, “So how is the banking business?”
Caught a bit off guard, my quick answer was, “Banks are making more money and handling risks well, but the tech companies aren’t so well off.” I hardly finished when the good doctor rattled off a most eloquent statement as to why he believed the leveling off scenario in new tech offerings. “Everything is electronic now, and with the Internet, we as customers get our banking done easily, quickly, conveniently and accurately. Bankers found the cure. Healthcare should be that successful.”

In recent months, I have been hired by other kinds of experts: those who invest in bank tech companies. They’re not convinced that the bank tech business has leveled off. You can see concrete examples of walking the walk, not just talking the talk. The acquisition of Open Solutions Inc. by investors. The total emersion of the biggest title insurance company (FNF), and now the tech company’s (FIS) takeover of its acquirer. A small startup (GFSI), which has had more Wall Street activity than business activity, with an oversubscribed secondary offering. Software giants such as Oracle whose database systems didn’t know a deposit from a loan now own a majority interest in an Indian bank tech company with an intent to overwhelm the U.S. With $100 million to invest in acquisitions, TEMENOS is waking up to Fiserv’s 21-year old strategy of acquire the competition. And when all else fails, bring in a new CEO. That’s what Misys did, and I presume they’ll be overcrowding the U.S. market also.

It’s very clear that investment money is looking for a place to land, and the vendors are lining up. The next phase will be: Are the financial institutions buying? That’s when the final score will be tallied. The doctor and I know where we stand. What do you think?

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