Core showcase gives bankers look at tech options at ABA conference

Kim Kirk, Queensborough National Bank, Queensborough, Ga., interviews Paul Waltz, president and CEO of SHAZAM. Kirk serves as vice chair of an ABA committee that studies core processing companies.

In perhaps a first for any banker association conference, leaders from 14 core providers sat for interviews in succession before the audience at the National Conference for Community Bankers hosted by the American Bankers Association, on Sunday, Feb. 20 in Palm Desert, Calif.

The series of interviews, which took over two hours, was the result of work by an ABA committee formed in 2018 to consider banker issues with core providers and to open a dialogue with such companies in order to improve partnerships between the banks and their core partners.

The interviews were conducted by committee chair D.J. Seeterlin, vice president and chief information officer for Chesapeake Bank, Chesapeake, Va., and vice chair Kim Kirk, executive vice president and chief operating officer at Queensborough National Bank and Trust, Queensborough, Ga.

The interview subjects came from familiar companies, such as Fiserv, FIS and Jack Henry, and some companies lesser known to community bankers, such as SAP Fioneer, Smiley Technology, BrightFi and Tata Consultancy Services.

All of the company spokespersons said they were dedicated to the community banking industry, and said they make substantial research and development investment in their technology to develop their products and services. Comments included:

Frank Bisignano, president and CEO of Fiserv: “We are in business to help our clients grow their business,” he said. Fiserv recently announced it is purchasing Finxact, and Bisignano said he expects the tech company to be a “growth engine” for Fiserv. Asked about the difficulty of the conversion process, he said he understands “what that weekend is about,” and assured that Fiserv understands that the business is about “client choice.” He commented, “A great conversion is driven by great preparedness.”

Gary Norcross, chairman and CEO, FIS: “Community banking is the lifeblood of our company, it is the lifeblood of the country.” He emphasized that community bankers need choice, “so we want to make sure we are flexible,” referencing the ability of his company’s solutions to connect with third parties through APIs. He also said the company offers a different approach to service contracts, including a month-to-month option. “Exclusivity,” he said, “is not a feature of our contracts.”

David Foss, board chair and CEO, Jack Henry & Associates, announced the company is launching a new platform that supports all fintechs and APIs “so the bank of the future can choose which applications to use. He said the company has five customers in beta using the platform now. He noted the company is picking up net one new core customer every week, and he emphasized that all of the company’s revenue comes from community banking.

David Culbertson, president and CEO of Computer Services Incorporation (CSI), said “we want to create an environment of innovation,” noting the company does 45 conversions per year, bringing on some 25 new core customers per year. The company has two platforms, and he noted it devotes approximately 35 to 40 percent of its revenue to research and development.

Siohban Byron, executive vice president of Universal Banking at Finastra, declared “we are committed to your growth and success,” noting the company devotes about 30 percent of its annual revenue to R&D.

Sarah Fankhauser, president and CEO of DCI (Data Center Incorporated) noted the company’s founding, which was by four bankers in Kansas 59 years ago. “Our ownership is unique; we make strategic decisions, not quarter-to-quarter decisions.” DCI solutions use the private cloud, and Fankhauser commented that all of the company’s contracts are coterminous, which aligns contract dates between various service components.

Paul Waltz, president and CEO of SHAZAM, noted the company’s unique structure, whereby it is owned by its customers, or members. “Everyone around the board table uses the product,” he said. The product uses a “completely open” API structure. “We are owned by our members so there is no incentive to inflate our prices,” he said. Referring to his community banks roots that include 35 years as a banker, he said “I can drive into any community in the country and know if there is a solid community bank there,” he said, referring to the impact community banks have on their communities.

Other presenters were: Elizabeth Glasbrenner, president and CEO of Smiley Technologies; Michael Coghlan, founder and CEO of BrightFi; Mike Tenpas, president and CEO of UFS Tech; David Bomser, head of digital and core banking Americas, SAP Fioneer; Jim Joyce, co-founder and CTO, Finxact; Nagaraja Rao, sales head, Tata Consultancy Services, and Mike Haney, head of digital Core, Technisys.