Loraine Lawson 00:08
Hi everyone, I’m deputy editor Loraine Lawson. And welcome to the buzz from bank automation news where we explore how automation and emerging technology are transforming the banking industry. It is February 18 2022, and this is our weekly wrapup of what’s happening. First, I’d like to say thank you to our sponsor glia for your support. This week, I’m pleased to be joined by Associate Editor al Elijah Poindexter the news this week from Ban, FIS acquired Atlanta based FinTech payrexx in embedded and embedded finance play and reported a record year in terms of earnings with year over year revenue rising by more than 350 million. Now, the Atlantic base Pyrex was founded in 2015, a larger and it enables SAS based platforms to embed payments and financial technology into their offerings. So this is very much a play to provide more services and modernize FIS is offering. And the newly appointed president said as much noting that Pyrex will modernize our clients experience through their next generation product suite and enable us to deliver differentiated and differentiated embedded finance and payments. Experience for platforms that primarily serve SMBs also advise banking solutions revenue grew 8% in 2021, was a record year with overall revenue in fourth quarter growing 11% to $3.7 billion. That’s up 350 million year over year. And banking solutions specifically grew from 6 billion in 2020 to 6.4 billion in 2021. At that core provider banking solutions revenue again, Rose 8% year over year in the fourth quarter to 1.7 billion according to the earnings call. Now, you covered the Swiss core provider tendinosis earnings call and continue with that theme of service base cores terminos reported SAS related revenue shot up 32% year over year to $35 million. Elijah, what else did you learn in that earnings call?

Alijah Poindexter 02:13
Yeah, so obviously, they’re SAS related revenue. I mean, that’s a pretty big year over year increase, and is reflected in their overall revenues. They increased 8%, year over year to 153 million. And you know, on top of that, there were a lot of client wins this quarter, or they counted 19, for the quarter for q4. And then there were 63, in total for 2021. So there’s been a lot of growth for terminos, which obviously is based out of Switzerland and and is a really, really, really, really big deal in Europe. And as a super big deal in America too. But specifically in the US, they’re trying to make some deep inroads there. And they’ve been relatively successful thus far. CEO, Max Chu ARD, I hope I’m pronouncing that correctly. He spoke specifically to us partnerships as being key for the growth that Temin have saw, you know, the core provider, they announced partnerships with Salesforce and Commerce Bank. And then they also announced a partnership with green.in, the previous quarter. So they’re making some very deep inroads there. And it’s exciting to see what happens next. But overall, this earnings call for 10 minutes reflected financial and geographic expansion for their for their services.

Loraine Lawson 03:16
And Elijah again, you also spoke with Jack Henry CEO, David Foss, who recently announced that the brand would be in bundling some of its core functions to take a more service based approach. He spoke to you about that strategy. What did you learn?

Alijah Poindexter 03:29
Yeah, so the first thing I’ll say about the strategy that, you know, Mr. FOSS was quick to point out was that it was this is a response to a groundswell of demand for open and embedded finance and baking solutions, you know, the digital revolution we’ve seen over the past few years. You know, while we can talk about what may or may not have caused it or fostered it, there’s no doubt that fintechs and challenger institutions across the board have played a massive part. And it’s created a massive disruption or disintermediation, whichever you want to call it, and, you know, consumers who have been, you know, exposed to the solutions from these sort of fintechs over the past couple of years. Well, now, they’re expecting these, you know, similar innovations from their community bank, from the place they go to every day, every other day, the place that they do their mobile banking with the place that they have their mortgage, you know, service by, they’re looking for these innovations there. And so this new strategy is going to help in Mr. Foster’s words, disrupt the disruption, it’s going to enable these local and regional community banks, you know, who may not be able, due to just the kind of part that they play in the environment, to be first movers in a truly, you know, cloud native API enabled innovation market, it’ll you know, it’s going to help them access these innovations, and then provide them to their customers. And then on the tech side of that, so they’re unbundling their processes. This is a fence effectively, Project Henry, it’s going to migrate traditional core software with all of its inherent functions from you know, ACH and wire transfers to anti fraud and account origination, and help to create a component based ecosystem that can run on a public cloud. So again, this is going to give local and regional community banks and and credit unions and financial institutions a roadmap for moving from existing core processes and infrastructures to a truly cloud native architecture with, you know, these open banking capabilities and fintech integrations that consumers and frankly other banks have been waiting for.

Loraine Lawson 05:16
One of my questions is really going to be possible for course to adapt services without a complete overhaul. I had had a conversation with Mark Atherton’s Group Vice President, Oracle Financial Services. I think I’ve mentioned this before, but he told us that building an application optimize for software as a service means running or deploying micro services. Now, of course, Mark, Oracle might say that because they in fact, when they acquired flexcube, rebuilt it from the ground up using microservices, that’s basically a way to build applications and architecture, if you will. He says many, many other providers are simply deploying on the cloud or service enabling their acts which is different, he says then building these micro services from the ground up. So it’ll be interesting to see how that plays out. If if, if the experience is the same for something that’s enabled versus something that’s cloud native, shifting away from services this week. We also saw some consolidation in the automation space as workflow automation vendor and RPA. Vendor night, Ninh Tech’s acquired RPA vendor cut Chiron sorry, I stuttered a little bit their financial details of the Reagan agreement were not disclosed, but then tech CEO Eric Johnson told bank automation news that cry, cry on RPA will become Nintex next generation RPA capability which means cry run, customers will not need to migrate. That’s often a concern when you have these kind of deals. He did say that, that they are a huge player in the Automate or pioneer in the automated process discovery technology space, and that that will help to expand in Texas capabilities that that area, and they’ll be integrating that into the Nintex process platform. And this continues last year’s trend of RPA vendors acquiring process mining or process discovery technology. But it also leads me to wonder will we see more consolidation in the RPA space this year? Finally, I’d like to introduce to you to a new feature our weekly transaction column which covers what solution banks and credit unions are selecting for their technology needs. For instance, this week we reported that first international BMTC with 30 branches based in Waterford City, North Dakota adopted Pfizer mobility and the $3.1 million dollar at Apple FCU Fairfax, Virginia, with 20 branches adopted connect FSS emerge. We also had news that great southern bank tfcu of Texas and Bucky community FCU chose Pfizer for their core digital banking needs while independent financial selects Jack Hinch selected Jack Henry to automate commercial lending. For a weekly look at these and other transactions and transactions in the industry. Check out our transaction column each week. Elijah, what are you digging into for next week?

Alijah Poindexter 08:14
Yes, early next week. Hopefully I’ll be able to run a story on a brand new earned wage access solution ewe from US Bank. What this does is it’s going to give employees real time access to earned but you know unpaid wages to a US Bank Service Card. But I’m really looking forward to giving it some covered so hopefully everybody will be able to read that next week.

Loraine Lawson 08:35
So that is it for us today. Thank you so much for joining us for the weekly wrap on the buzz don’t forget to attend our bank automation summit which is March 1 through second in Charlotte, North Carolina. You can learn more about the bank automation summit at Bank automation summit.com. For more podcast content, check out bank automation news and search the buzz from bank automation news on iTunes and Spotify.

Loraine Lawson 00:08
Hi everyone, I’m deputy editor Loraine Lawson. And welcome to the buzz from bank automation news where we explore how automation and emerging technology are transforming the banking industry. It is February 18 2022, and this is our weekly wrapup of what’s happening. First, I’d like to say thank you to our sponsor glia for your support. This week, I’m pleased to be joined by Associate Editor al Elijah Poindexter the news this week from Ban, FIS acquired Atlanta based FinTech payrexx in embedded and embedded finance play and reported a record year in terms of earnings with year over year revenue rising by more than 350 million. Now, the Atlantic base Pyrex was founded in 2015, a larger and it enables SAS based platforms to embed payments and financial technology into their offerings. So this is very much a play to provide more services and modernize FIS is offering. And the newly appointed president said as much noting that Pyrex will modernize our clients experience through their next generation product suite and enable us to deliver differentiated and differentiated embedded finance and payments. Experience for platforms that primarily serve SMBs also advise banking solutions revenue grew 8% in 2021, was a record year with overall revenue in fourth quarter growing 11% to $3.7 billion. That’s up 350 million year over year. And banking solutions specifically grew from 6 billion in 2020 to 6.4 billion in 2021. At that core provider banking solutions revenue again, Rose 8% year over year in the fourth quarter to 1.7 billion according to the earnings call. Now, you covered the Swiss core provider tendinosis earnings call and continue with that theme of service base cores terminos reported SAS related revenue shot up 32% year over year to $35 million. Elijah, what else did you learn in that earnings call?

Alijah Poindexter 02:13
Yeah, so obviously, they’re SAS related revenue. I mean, that’s a pretty big year over year increase, and is reflected in their overall revenues. They increased 8%, year over year to 153 million. And you know, on top of that, there were a lot of client wins this quarter, or they counted 19, for the quarter for q4. And then there were 63, in total for 2021. So there’s been a lot of growth for terminos, which obviously is based out of Switzerland and and is a really, really, really, really big deal in Europe. And as a super big deal in America too. But specifically in the US, they’re trying to make some deep inroads there. And they’ve been relatively successful thus far. CEO, Max Chu ARD, I hope I’m pronouncing that correctly. He spoke specifically to us partnerships as being key for the growth that Temin have saw, you know, the core provider, they announced partnerships with Salesforce and Commerce Bank. And then they also announced a partnership with green.in, the previous quarter. So they’re making some very deep inroads there. And it’s exciting to see what happens next. But overall, this earnings call for 10 minutes reflected financial and geographic expansion for their for their services.

Loraine Lawson 03:16
And Elijah again, you also spoke with Jack Henry CEO, David Foss, who recently announced that the brand would be in bundling some of its core functions to take a more service based approach. He spoke to you about that strategy. What did you learn?

Alijah Poindexter 03:29
Yeah, so the first thing I’ll say about the strategy that, you know, Mr. FOSS was quick to point out was that it was this is a response to a groundswell of demand for open and embedded finance and baking solutions, you know, the digital revolution we’ve seen over the past few years. You know, while we can talk about what may or may not have caused it or fostered it, there’s no doubt that fintechs and challenger institutions across the board have played a massive part. And it’s created a massive disruption or disintermediation, whichever you want to call it, and, you know, consumers who have been, you know, exposed to the solutions from these sort of fintechs over the past couple of years. Well, now, they’re expecting these, you know, similar innovations from their community bank, from the place they go to every day, every other day, the place that they do their mobile banking with the place that they have their mortgage, you know, service by, they’re looking for these innovations there. And so this new strategy is going to help in Mr. Foster’s words, disrupt the disruption, it’s going to enable these local and regional community banks, you know, who may not be able, due to just the kind of part that they play in the environment, to be first movers in a truly, you know, cloud native API enabled innovation market, it’ll you know, it’s going to help them access these innovations, and then provide them to their customers. And then on the tech side of that, so they’re unbundling their processes. This is a fence effectively, Project Henry, it’s going to migrate traditional core software with all of its inherent functions from you know, ACH and wire transfers to anti fraud and account origination, and help to create a component based ecosystem that can run on a public cloud. So again, this is going to give local and regional community banks and and credit unions and financial institutions a roadmap for moving from existing core processes and infrastructures to a truly cloud native architecture with, you know, these open banking capabilities and fintech integrations that consumers and frankly other banks have been waiting for.

Loraine Lawson 05:16
One of my questions is really going to be possible for course to adapt services without a complete overhaul. I had had a conversation with Mark Atherton’s Group Vice President, Oracle Financial Services. I think I’ve mentioned this before, but he told us that building an application optimize for software as a service means running or deploying micro services. Now, of course, Mark, Oracle might say that because they in fact, when they acquired flexcube, rebuilt it from the ground up using microservices, that’s basically a way to build applications and architecture, if you will. He says many, many other providers are simply deploying on the cloud or service enabling their acts which is different, he says then building these micro services from the ground up. So it’ll be interesting to see how that plays out. If if, if the experience is the same for something that’s enabled versus something that’s cloud native, shifting away from services this week. We also saw some consolidation in the automation space as workflow automation vendor and RPA. Vendor night, Ninh Tech’s acquired RPA vendor cut Chiron sorry, I stuttered a little bit their financial details of the Reagan agreement were not disclosed, but then tech CEO Eric Johnson told bank automation news that cry, cry on RPA will become Nintex next generation RPA capability which means cry run, customers will not need to migrate. That’s often a concern when you have these kind of deals. He did say that, that they are a huge player in the Automate or pioneer in the automated process discovery technology space, and that that will help to expand in Texas capabilities that that area, and they’ll be integrating that into the Nintex process platform. And this continues last year’s trend of RPA vendors acquiring process mining or process discovery technology. But it also leads me to wonder will we see more consolidation in the RPA space this year? Finally, I’d like to introduce to you to a new feature our weekly transaction column which covers what solution banks and credit unions are selecting for their technology needs. For instance, this week we reported that first international BMTC with 30 branches based in Waterford City, North Dakota adopted Pfizer mobility and the $3.1 million dollar at Apple FCU Fairfax, Virginia, with 20 branches adopted connect FSS emerge. We also had news that great southern bank tfcu of Texas and Bucky community FCU chose Pfizer for their core digital banking needs while independent financial selects Jack Hinch selected Jack Henry to automate commercial lending. For a weekly look at these and other transactions and transactions in the industry. Check out our transaction column each week. Elijah, what are you digging into for next week?

Alijah Poindexter 08:14
Yes, early next week. Hopefully I’ll be able to run a story on a brand new earned wage access solution ewe from US Bank. What this does is it’s going to give employees real time access to earned but you know unpaid wages to a US Bank Service Card. But I’m really looking forward to giving it some covered so hopefully everybody will be able to read that next week.

Loraine Lawson 08:35
So that is it for us today. Thank you so much for joining us for the weekly wrap on the buzz don’t forget to attend our bank automation summit which is March 1 through second in Charlotte, North Carolina. You can learn more about the bank automation summit at Bank automation summit.com. For more podcast content, check out bank automation news and search the buzz from bank automation news on iTunes and Spotify.