X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

AUSTIN, Texas – Internet solutions firm FundsXpress has a new CEO and $10 million in additional financing. Brent Warrington is the new CEO of FundsXpress; taking over for John Burns, the founder and former CEO of the company who will continue on as vice chairman of the board. FundsXpress also announced $10 million of additional funding. Warrington, formerly president of FundsXpress, was excited about what he says is pending profitability. “That’s full profitability, not just EBITDA. Even though one might say we’re (the nation) in an economic slump, we still see our end user growth rates are not only sustaining but increasing over the last 18 months,” said Warrington. He expects profitability in the next three to six months. Warrington attributes the company’s financial success to many things, one of which is being a pure ASP, instead of what he described as a managed co-location ASP. “From our perspective we are a pure ASP, so greater than 80 to 85% of our revenue is recurring,” he said. Pure ASP? Managed co-location ASP? What’s the difference in Warrington’s eyes? “We run a single instance of software for all of our products across our client base. If we do an upgrade on Internet banking, and we do 20 to 25 a year, every single client gets the benefit of that simultaneously. It removes me from having to send someone out in the field for site based reload,” he said. “A lot of people say they’re an ASP but they’re just hosting. It’s managed co-location. That’s not what ASP is,” he said. For example, some Net banking providers have server farms at their locations, with each client getting a server. “If you have 1,000 servers sitting at your shop that’s 1,000 upgrades,” he said. Warrington said the space is continually consolidating and he sees FundsXpress playing in that consolidation in the future, maybe even in the credit union area. Being privately-held is a benefit these days, said Warrington. He noted that the company has raised about $90 million so far, more than many of the IPOs competing public companies have raised. It was expensive to get the FundsXpress model operating with all of the technology being proprietary, but Warrington says once a company using that model hits critical mass, growth compounds. The latest $10 million in financing will help the company launch new products, something Warrington is adamant about. It is seeing new revenue with bill presentment and is updating its cash management solution to make it more robust. About 15% of the company’s 500-plus financial institution clients are CUs. FundsXpress and competitor Digital Insight are still locked in a legal battle stemming from a FundsXpress lawsuit alleging copy infringement, unfair competition, misusing trade secret information and other things by Digital Insight. A court issued an injunction against Digital Insight barring them from using any of the information FundsXpress is alleging it stole. Warrington said business has boomed since the injunction. “Obviously we’re very pleased with how the case is moving along. We’re still in a period of discovery,” he said. Warrington gives hope to all those marketing execs who have CEO aspirations. Although he does have an extensive technological background, Warrington joined the company in sales/marketing and business/product development. [email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.