Paladin Blog

How to Make a Merger Successful

Posted by Bob Moreau on Mar 31, 2021 2:48:00 PM

Mergers are a common occurrence in the current community banking environment. In our discussions with bankers about strategic growth and possible acquisitions, we find that most are either active in the pursuit or at least open to possible merger opportunities. All bankers should be prepared and have core contract language in place to address being acquired as well as acquiring another institution before an acquisition opportunity is presented.

Below is an actual case study showing many of the critical factors that need to be considered in a core contract for a successful merger.

Read More

Topics: Paladin Research, Fintech

Why Switching Sides Was The Best Career Move I Ever Made

Posted by Bill Finney on Mar 8, 2021 6:18:59 PM

My name is Bill and I spent the last 10 years employed for one of the “big three” providers of core software for community financial institutions in the United States.  A re-read of that previous line aloud almost sounds like I’m part of a 12-step program.  Six months now after leaving and switching sides to a consulting firm that professionally negotiates for banks against my previous employer - has been sobering for sure.

Read More

Topics: Paladin Research, Fintech

Evercore 2021 Technology Outlook

Posted by Todd Morgan on Feb 18, 2021 1:31:34 PM

We are not looking for opportunities to insult FIS, Fiserv, and Jack Henry. They are fine institutions that offer an array of products and services. When community banks and credit union executives share their candid remarks about the Big Three we bring that information, and more, to your attention. That is why the 2021 Evercore ISI Bank Tech Outlook report we participated in is so insightful.

Read More

Topics: Paladin Research, Fintech

Will the Cloud Based Core Fintech Messiah Ever Arrive?

Posted by Aaron Silva on Feb 3, 2021 9:13:49 AM

The pent up demand for an alternative, modern, competitive core to the out-dated legacy stack saddling the community financial industry today led by Fiserv, FIS, Jack Henry and their cousins at Finastra and CSI is incredible.  Bankers are not only thirsty for a platform that is easy to use and easy to train their staff, they need platforms that are flexible and can be integrated easily with any number of other systems.  This isn't much to ask for in the 21st century, but unfortunately the options are slim pickings and will remain that way for some time.  I predict that it will be another 3-5 years (circa 2024 - 2025) before any of the new fintech cores are mature enough and exhibit the appropriate risk profile palatable for bankers to jump in.  What I mean is that a rank-and-file banker is going to need to see and understand many reference-able accounts that have operated for many years successfully before they will risk their franchise.  Community bank CEOs (many older and nearing retirement) are going to be risk averse even though they know a technology transformation is the key to long-term success.  Regardless of their tenure,  very few bankers are interested in being the 5th, 15th or 25th bank on a new, unproven core platform.  

Read More

Topics: Paladin Research, Fintech

Timing is the Difference Between the Quick and the Dead

Posted by Aaron Silva on Dec 10, 2020 3:56:55 PM

Three sales reps from Fiserv, FIS and Jack Henry walk into a bar one night and belly up to the counter. The bartender says, "What would you three gentlemen like?"  In unison they all answered, "A banker with less than 12 months on his contract willing to negotiate alone!"

Read More

Topics: Contract Negotiations, Paladin Research, Fiserv, Jack Henry, Fintech, FIS, Bank Technology

BANK NEWS REPORTS: Community Bankers Find Little To Love In Their Relationships With Core Providers

Posted by Aaron Silva on Aug 17, 2020 3:23:00 PM

Bankers News published an article featuring Paladin President, Aaron Silva, discussing frustrations by banks with their core providers.

"Gather a group of community bankers and you'll quickly find their common ground: A bad experience with a core processor. Their complaints might focus on lack of responsiveness, steep conversion or deconversion fees, or brutal terms to terminate a contract early; whatever the problem, the result is frustration."

Our President, Aaron Silva, weighed in on the topic.

Read More

Topics: Fiserv, Jack Henry, Fintech, FIS

Is Exclusive Marriage to a Partner Necessary Anymore?

Posted by Aaron Silva on Mar 3, 2020 10:04:12 AM

Buried deep in the fine print of your Core IT agreement is something called an “Exclusivity Clause”.  Most bankers don’t know it exists.  Most again don’t know what it means until they bring a competitive solution from a newer fintech to the relationship.  Bankers are surprised to find out that a vendor armed with the Exclusivity Clause (EC) has near total control over your destiny – at least for the next 5, 7 or 10 years.  Unless, of course. you are prepared to cough up 50%, 80% or even 100% of the remaining contract value to exit the service for greener pastures. This is completely unreasonable but it’s important to understand how we got here before we chart a course of freedom.

Read More

Topics: Fiserv, Jack Henry, Fintech, FIS

What If Trump Negotiated Your Next Core IT Deal?

Posted by Aaron Silva on Jan 20, 2020 1:53:18 PM

After 12 years of running a company that is 100% focused on negotiating on behalf of community banks against the Big Three Core IT oligopoly of Fiserv, FIS and Jack Henry, it’s not getting easier. In fact, it’s getting more difficult and more complex each year as these very intelligent suppliers maneuver, juke and jive to maintain market dominance over community banks whom, when doing it alone in a contract renewal negotiation, have little chance of getting a fair deal. The deck remains stacked against the industry even as many organizations finally begin to cry foul. Following the launch of the Golden Contract Coalition in 2016, ABA launched the “Core Platform Committee” in late 2018 turning up the heat publicly against core suppliers and calling out their unfair trade practices.

Read More

Topics: Fiserv, Jack Henry, Fintech, FIS

CSI Leads Push for 10 Year Technology Contracts

Posted by Aaron Silva on Nov 19, 2019 10:27:29 AM

It continues to escape any common or practical business sense as to why a community bank would agree to voluntarily be locked into a 10-year technology contract.  More so, the fact that a 10-year contract even exists (is offered at all) questions the ethical standards of technology suppliers and their commitment to selling services that fairly meet the needs of community banks in exchange for a reasonable profit.  10-year technology contracts are neither reasonable nor assist Banks in meeting any of their business needs. In fact, these contracts are predatory, outrageous and exorbitantly profitable to vendors and not their client “partners”. While all legacy Core IT suppliers would love to handcuff their clients to 10, 15 and 25-year contracts (yes, we’ve seen 25-year deals) one supplier - CSI of Paducah, Kentucky (www.csiweb.com) - appears to lead the charge on lacing their customer base within these contract shackles.

Read More

Topics: Fiserv, Jack Henry, Fintech, FIS

How Your Bank Approval Process Hinders Innovation

Posted by Chris Nichols, Chief Strategy Officer at CenterState Bank on Sep 25, 2019 1:30:18 PM

If you want a more innovative bank, it starts, and largely stops, with what your approval process looks like for new technology. Take a human and force them to grow up in New York City. Around age 20, you force them to go to conferences on living in the outdoors, hunting, fishing, and survival. You also hire consultants to come in and teach outdoor skills. Take your well-outdoor trained city dweller and then put them into the middle of the Colorado Rockies, chances are they become bear-food in a week. That is basically how banks are handling innovation.

Read More

Topics: Fintech, Bank Tech Spending, Bank Technology