It was late January when the Brookfield, Wis.-based Fiserv rocked the core system universe, announcing it had acquired competitor and DNA core architect Open Solutions for roughly $1 billion, much of that in debt assumption.
Shake up continues at high end of credit union core processing market.
Sea change in financial services delivery has left some in the wake and others riding high, Arizona consultancy says.
Do you want to know a secret? Roughly three in 10 small credit unions do not maintain their core systems in-house, instead using “hosted” or “service bureau” solutions where the core is in fact maintained off-premises by a third-party vendor.
This preview from next week's print edition continues tech writer Robert McGarvey's look at the changing core processing industry for credit unions.
Somebody is winning. Somebody is losing. Just don’t expect an easy to decipher who will win the battle in this update on the credit union core systems war.
Credit union core systems are old, truly antique in computer terms, but they also seem to be immortal in most institutions.
Core processing systems can often do more than they're typically used for, but less than what's needed.
Big banking tech companies recently have been hungrily gobbling up smaller companies and the question is, Will this consolidation continue? The other question, Is this good, or bad, for credit unions?
The announcement last month by Fiserv that it would acquire Open Solutions Inc. for roughly $1 billion, most of that in debt assumption, has sent some shivers through the credit union core processing world.