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Fewer Bank Tech Vendors, but More Solutions to be Had

Today, there are fewer bank tech companies, but more solutions in the marketplace. In 2001, there were 165 companies selling 223 solutions to banks, thrifts and credit unions. Today there are 71 companies selling 306 solutions. That's 57 percent fewer companies; 37 percent more solutions.

Today, there are fewer bank tech companies, but more solutions in the marketplace. In 2001, there were 165 companies selling 223 solutions to banks, thrifts and credit unions. Today there are 71 companies selling 306 solutions. That's 57 percent fewer companies; 37 percent more solutions.During the past seven years there were a total of 162 mergers and acquisitions in the account processing sector of banking technology. Today there are 26 companies that offer core solutions. 15 of them do it both ways-outsource and in-house. 9 of them do outsourcing only. 2 offer software only. The list of the Top 8 core companies hasn't changed in the past two years. That's a record. Previously, the lineup (players and rank) changed every year because of acquisitions. The Top 8 have been around for decades except for Fidelity National Information Services, which in name only, is just over five years old. Counting FNIS's first acquisition in 2003, the company is 40 years old. In 1999, the number of independent companies offering Internet Banking solutions peaked at 24. Today, there are 2 independent Internet Banking companies. Whereas the consolidation of core vendors was based on good acquisitions, the consolidation of Internet companies was mostly due to quick startups that failed quickly. The paradigm du jour is likely to occur with companies building Remote Deposit and Mobile Banking solutions-Find an investor, Build a product, Establish a company, Gain some customers, Sell it to a large company. 4 offshore companies (India and China) are included in the report this year. There are 132 pieces of any FI's technology pie, where "piece" is a technology-based resource (software and/or service) that supports what FIs do. One company cannot provide all 132, but the right three or four can.

I'm sure you could get by without the above trivia, but when I have 'em, I like to share 'em.

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