Attention, community bankers! The tectonic plates of banking technology are shifting, and if you're not paying attention, you might just find yourself doing an impromptu dance on the San Andreas Fault of financial services. The latest tremor? Our friends at the Big Three - Fiserv, FIS, and Jack Henry - are starting to play a high-stakes game of Jenga with their services, and guess who's left holding their breath as the tower teeters? That's right, it's you, the community banks and credit unions.
Fiserv has decided to kick off this party by beginning to ask their clients to ride into the sunset without Retail Online Banking (ROB) and Business Online Banking (BOB) services after December 2026. If you think that's a problem for future-you, think again. In the glacial world of core banking systems, 2026 is practically next Tuesday.
For years, these core vendors have been putting on a dazzling show of innovation, complete with smoke, mirrors, and probably a few doves for good measure. But let's peek behind the curtain of this digital Cirque du Soleil, shall we?
A deep dive into their financial reports reveals a plot twist that would make M. Night Shyamalan proud: these multi-billion dollar juggernauts have only been allocating a nacient 5% - 8% of Free Cash Flow to what they call 'innovation' over the past decade. It's like trying to fuel a rocket ship with a handful of AA batteries.
But here's the real kicker - this "innovation" isn't about revolutionizing banking technology. No, it's more like paying for premium cable on a black and white TV. It's the tech equivalent of putting racing stripes on a horse and calling it a Ferrari.
About a decade ago, the Big Three came up with a strategy so clever, it would make Wile E. Coyote green with envy. Instead of overhauling their systems, they decided to set up a series of toll booths on the fintech expressway. Here's how this traffic jam works:
This strategy has allowed them to enjoy the fintech boom without having to break a sweat modernizing their infrastructure. It's like winning a marathon while sitting in a comfy armchair.
90 SECOND VIDEO: Watch Banker Daniel thwart vendors trying to "sunset" his 45 year old application.
Now, Fiserv has decided to up the ante. By signaling the sunsetting ROB and BOB, they're essentially telling their clients: "Welcome to the future! It's a lot like the past, but more expensive." It's less of a choice and more of a "would you prefer to be uncomfortable now or later?" scenario.
Let's break down this plot twist:
So, what's a community bank or credit union to do in this David vs. Goliath scenario? Here's your battle plan:
While we can't spill the beans on ongoing negotiations (we'd tell you, but then we'd have to kill you... or at least buy you a really expensive dinner), trust me when I say this: These issues aren't theoretical. They're being hashed out in boardrooms across the country as we speak, probably over lukewarm coffee and stale danishes.
The precedents being set today will shape the banking technology landscape for years to come. It's like we're watching the banking equivalent of the Big Bang, only instead of stars and galaxies, we're dealing with APIs and data migration strategies.
The time to act is now. Don't let the sun set on your options, or you might find yourself trying to navigate the future with nothing but a sundial and an abacus.
In the immortal words of every great leader on the brink of a monumental challenge: "Let's do this thing!" (And maybe keep a stress ball handy. You know, just in case.)