For more than 10 years, the Holy Grail of core banking software has been the application that features full United States functionality (especially regulatory compliance) along with multi-lingual and multi-currency aspects. Such a product would be well received by both foreign and US-based banks, who have offices domestic and foreign. So far, a modern, integrated enterprise solution has not been found. The acquisition of D+H by a venture capital firm that already owns Misys, a well known international firm, appears to be the latest effort.
Misys will join two D+H cores, SPARAK and Phoenix (which already has some international flavor, courtesy of a Caribbean presence). SPARAK is a stable, more mature community bank product, mainly found in smaller asset based, rural banks across the US, and some speculate that it may eventually be phased out or sold to another US based technology provider. Meanwhile, combining Phoenix with Misys may give the new owners a leg up on introducing a solution that covers the needs of both domestic and foreign banks for a truly global product. While the merger will move the combined company into the top three US-based firms in terms of revenue, they will remain a smaller player in terms of the number of US banks processed.
In addition to the core offerings, the new company will continue to be well positioned to serve the platform lending software needs of small and large banks. Under the D+H umbrella is a suite of lending applications ranging from consumer to commercial to mortgage banking, that are arguably best of breed solutions. Ongoing efforts to enhance interoperability and service/support among these products promise even better things for the future.
Current D+H customers, especially SPARAK users, should watch events carefully, for clues to how the new owners will move to align resources for maximum benefit, and of course for maximum profits.
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