Finxact’s digital banking technology will advance Fiserv’s payment and financial services solutions offering for fintechs and financial institutions
Fiserv to acquire Finxact. (Credit: StockSnap from Pixabay.)
US-based fintech and payments company Fiserv has agreed to acquire the remaining stake in Finxact, a developer of cloud-native core banking solutions, for around $650m.
The acquisition is expected to help Fiserv advance its digital banking strategy and expand its account processing, digital, and payments solutions.
Also, the transaction is anticipated to strengthen its position as a provider that enables its clients to scale, advance and expand their digital banking experiences.
Fiserv was an early investor in Finxact, which provides a real-time and extensible banking solution to financial institutions, to enhance their access to their data.
The acquisition is expected to close later this year, subject to customary approvals and closing conditions.
Fiserv president and chief executive officer Frank Bisignano said: “We’re accelerating the delivery of innovative digital banking experiences for our clients and elevating their ability to compete in a rapidly changing market.
“This transaction complements our Fiserv account processing solutions and expands our opportunities to serve clients by bringing together Finxact’s highly flexible and scalable API-first capabilities with the comprehensive digital financial solutions portfolio and expertise of Fiserv.
“Through this combination, Fiserv will create a streamlined path for clients to offer digital solutions to their customers. Finxact also enhances our ability to support a growing number of financial institution and business clients.”
Established in 2016, Finxact is a next-generation core banking platform that provides a portfolio of advanced APIs to organisations of all sizes.
With this acquisition of Finxact, Fiserv is enabled to provide modern, flexible and highly personalised digital banking experiences to its clients.
Finxact is expected to bring domain expertise and a transformative approach that would help Fiserv to roll out advanced open banking and fintech integrations.
Finxact chairman and CEO Frank Sanchez said: “Joining with Fiserv is a tremendous opportunity for Finxact. We recognize that Finxact’s technology can serve to level up the industry’s delivery infrastructure, and crucially at a time when banking is undergoing transformative changes.
“We will be better positioned to serve a far greater number of institutions, of all sizes, when combined with the breadth and depth of Fiserv capabilities.”