A client forwarded an email sent by an consultant that reads "Paladin has learned that Fiserv has definitive plans to consolidate all Fiserv Premier, Precision and Cleartouch clients onto a single (unnamed) platform in the next 18 – 24 months - don't let Fiserv pull a fast one on you!"
Is this true? Is Premier going away, also?
DNA core is a sh*t show so good luck to the clients moving onto it. The implementation process is broken, no knowledgeable resources left, lacking leadership that cares and they can’t deliver half the cr-p they sell these FI’s.
I don't see a revenue stream from this. How are they going to charge existing clients to migrate to a different core? He-l, they've been giving these moves for free as one offs for a few years now, just to keep disgruntled clients on some kind of Fiserv core.
If they start forcing this via sunsetting, not only will they not be able to charge for the migrations, they'll have to release clients from contracts too, as you can't hold them legally to a product that no longer exists. Prepare for the flood gates to open when that happens, as many clients are already just waiting to leave until their contract expires anyway. They don't want to be with Fiserv but they don't want to A) pay the penalty to breach their contract; and B) put their staffs through a conversion. Force it and you make that decision easy for them.
It's not really a question if they should consolidate cores, it's that they can't execute it. At this point they would have to build a huge team of new hires to work on it because so many support people are gone or they are spread out all over the globe.
I honestly don't know if they care if they lose core clients. Revenue on the projects to move everything else is huge and I think a lot of it is "impact revenue" which allows us to keep cooking the books from one quarter to the next.
One day some poor slob of a person is going to take the CEO job and is going to have a lot of cleaning up to do.
The core situation is truly a mess. Damned if you do, damned if you don’t. How many cores are just running on a handful of clients? I’d wager half of them at least but anyone with a definite answer, I’d love to hear it.
At some point, you gotta bite the bullet or else you’ll lose revenue anyway from attrition because of the zombie cores.
Bunch of know nothings on a downvoting spree again. Do some research on this Paladin. Horrible company.
Same result, but in half the time!
Going back to when the Check Free incapables ran the Enterprise side and were tasked with DC consolidation and core consolidation they made ZERO progress over just under decade. They would travel all over to the different DC's, waste millions of $$ and talk up a big plan and try to look important. Frank threw them to dumpster on day one and put the FD incapables in charge of those plans. 5 years later, the same result. Exactly the same result.
Great discussion! @2yix+1tFQuScK excellent comments. JY had an opportunity to take big swings when Fiserv purchased DNA/Open he failed to do so. As mentioned in a prior post on this thread 10 years + not a new topic. Taking these steps while painful long-term benefits all. Many FI's will organically choose to merge fueled by core vendor decisions and direction.
The rub here is our leadership is not on board. Fiserv's core investment is less than half our competitors (2022 fact, FYI Fiserv has yet to release percentages for 2023 most likely even less today). Development and support for DNA, Precision the go to cores has taken at least a 5 percent hit since 2021.
A wild ride indeed.
I’m fairly certain the consolidation mess that is happening and will continue to happen is why it was left alone for so many years. Any core or digital banking conversion is a lengthy process and opens the door for the client to see what else is out there.
Granted, some of these are POS that need to be sunset. However, some on the chopping block, I would leave alone for a few more years until the disinvestment then turns them into a POS. Slow cycle continues.
On the flip side, less products, less expensive, higher EPS if you can save a significant portion of our clients and place them on a better, more expensive product. We can then use some of those savings and revenue to reinvest in the remaining products to make sure we remain near the top or best in class.
Will that actually happen? Strap in buttercup because we are going to find out.
I truly believe the executive leadership wants to do this. It aligns with their squeezing blood out of a stone mentality.
I also truly believe that this subset of executives have little to no understanding of what that would actually take, or have any kind of feasible structured plan to get there.
I hope they try to force it though, because it will bring the whole thing crashing down.
Core consolidation has been discussed for over 10 years.
There is no easy answer. A forced march puts too many clients in play. Not enhancing cores with no future puts clients in play.
Fiserv created a monster and doesn't know what to do.
Clients won't be willing to disrupt operations with a conversion unless they feel they are moving to a better system that makes the apin worth it.
If they bite the bullet and decide to convert, they need to look at all options including platforms competing with Fiserv. What a mess
It’s BS. This “consultant” Paladin is not to be trusted. Block and ignore.
There is an easy way to find out. Only the go-forward cores can get enhancements. Dead cores will not be getting any additional functionality.
The plan is to pressure customers to switch to the more profitable core.
It is impossible to correctly migrate all of our customers to a single core. But if you remove the word "correctly" then things become very much attainable.
Check your contract for loopholes, Fiserv corporate has already gone over it and found the loopholes it needs.
A year or so ago the mantra was 16 to 5 in five. Meaning 16 banking and CU cores reduced to 5 in 5 years. For CU, only Portico and DNA were to remain. Don’t know the banking side winners.
Agree, chances of achieving that are pretty slim, not that they won’t give it a good try. Bottom line, plan is to reduce the product portfolio.
There is no way that is correct information. I don't think we would even get South State converted in that timeframe.
It's been tossed around a bit, but the most likely thing to happen is Cleartouch and Precision get converted to Premier over a 10 year period.
All I can say is "Good Luck". NO WAY they get it done that quickly. Too many unavailable weekends (due to change controls) and not enough knowledge remains in any of the cores. I'll get my popcorn ready for this as I will be long gone!!
It’s true- have fun!
If true, then Precision and Cleartouch would most likely convert to Premier. Deconverting and converting Premier would be an almost impossible task due to the number of clients on it across multiple data centers, different host hardware and operating systems.