Core Banking Providers Frustrate Banks Who Seek Newer Providers

The core banking provider market is starting to feel the winds of change as banks start seeking newer providers and move away from the industry mainstays; Fiserv, FIS, Finastra and Jack Henry have dominated the core provider market for many years but banks have started to get frustrated by their lack of innovation and the fees they charge for various add-on services; “The biggest threat to banking innovation is the legacy cores,” said Ryan James, CEO of Surety Bank, to American Banker. “I want the bank to be here for another a hundred years, and it just was not happening under any legacy core.”; a crop of newcomers, including Nymbus, Neocova, Finxact and Technisys, is starting to gain some traction with better technology and simple pricing structures; the new providers also allow for easier integrations, a big complaint of banks with traditional providers is they make it hard to integrate so you are stuck staying with them and waiting on their new products; while the core provider market has yet to be completely upended, there are signs that disruption is coming their way. American Banker