Fiserv Pockets Open Solutions, a Feisty Competitor
While Fiserv Inc.’s purchase of Open Solutions Inc. marked the end of an era, it also sparked conversation about how the financial services technology giant will handle the addition of another handful of core account processing platforms to its portfolio.
The Jan. 14 purchase, for $55 million in cash and another $960 million in assumed debt, marks the end of a feisty Fiserv competitor that at one time threatened its domination of the credit union technology space.
“CheckFree really brought transformational change to Fiserv in terms of providing us with market- leading payment capabilities,” the Fiserv CEO said. “Open Solutions brings a number of innovative products to bear on the market but at the same time does not bring transformational change.”
But the Fiserv CEO said he does not see Acumen and DNA ultimately co-existing in the Fiserv lineup. “Over the next 24 months we want to take some of the unique capabilities we have constructed within the Acumen environment–such as customizable workflows and member management capabilities–and export that over to DNA. We think that will make it ultimately the most innovative and existing account processing platform available.”
“They’ve made progress on that in the recent past and this presents another opportunity to do something about it. I mean, why buy three cores when you already have so many? Which solution is going to be the winner? I think it’s going to be DNA.”
He also sees the technology giant using its existing products to help make that happen, particularly in the payments arena.