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Letter From the President  |
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Analyst Spotlight: Karen Massey, IDC Financial Insights We were thrilled to have record participation for the eighth annual FinTech 100/Enterprise 25, a global ranking of the largest providers of hardware, software and IT services to financial institutions. Calendar year revenue 2010 for these providers was a collective $58.1 billion, growing nearly 10% from the previous year. Even in these challenging times, the leading global FinTech providers are continuing their success.What are the top new technologies and companies well-positioned to serve the financial services market in 2012? Looking ahead to 2012, we see three key themes emerging that will drive technology investment:
In banking, providing a seamless cross-channel customer experience will essentially fall squarely on the shoulders of the core banking providers, as the last significant stand-alone channel provider S1 agreed to a deal with ACI. Analytics will play an increasingly important role in managing customer profitability and a few to watch from the top of the FinTech list are Equifax and Experian, as well as Nice Actimize who jumped 12 positions last year. From a revenue enhancement perspective, new product development, innovation and new fee structures will be key. The larger providers are in the best position to partner with FIs on these initiatives, such as FIS, Fiserv, IBM, HP and Accenture. What do we know about the companies that fell off the FinTech 100? What's interesting is that this year the minimum revenue needed to make the FT 100 list dropped to $39 million from $50 million in previous years. This was the first drop since we started the ranking eight years ago. Combine that with the increase in overall revenue of the FT 100 to $58 billion, and we see that the big vendors keep getting bigger. In 2009 there were only two acquisitions among the FinTech 100, FIS buying Metavante and Jack Henry & Associates buying Goldleaf Financial Solutions. In 2010, there were five acquisitions with Temenos buying both Viveo Group and Odyssey Financial Technologies, Pegasystems acquiring Chordiant Software, Wolters Kluwer Financial Services buying FRSGlobal and Oracle acquiring Sun Microsystems. Predictions on the 3-5 companies you expect to see on the FT 100 soon? Mobile is a growing area, however the pure play mobile banking vendors haven't reached critical mass yet to make the list, and are more likely to be acquired by one of the cores than to achieve the organic growth required to appear on the FinTech. We do expect to have more vendors from outside the U.S. debut on the FinTech as the program continues to gain popularity outside North America. New to the FinTech in 2011 included German Wincor Nixdorf, Aegis Global Communications, L&T Infotech, and aurionPro Solutions from India and Clear2Pay from Belgium. Does that mean that we'll see more non-U.S. based vendors competing in the U.S. marketplace? The non-U.S. based vendors have been focused for sometime on the vast U.S. market with its 15,000+ financial institutions - with mixed success. Non-U.S. outsourcers, such as TCS and Infosys - both in the top 10 of the FinTech - have been quite successful bringing a cost savings value proposition to U.S. FIs. On the other hand, U.S. FIs have been hesitant to adopt critical applications of non-U.S. providers. This is especially prevalent in the core banking market where non-U.S. vendors have had extremely limited success. |
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Fintech Media Updates
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