This year’s ranking of the
fintech industry’s 100 leading players is again led by Fiserv, but
looking ahead 12 months, its position at the head of the rankings
is under threat from FIS.

Fiserv, the
Wisconsin-headquartered end-to-end business and technology solution
provider, has been ranked first in every annual FinTech 100 listing
– other than 2007 when it was nudged out by FIS – since the survey
debuted in 2004.

Karen Massey, senior analyst
for consumer banking at IDC Financial Insights, co-authors of the
report, said: “We will likely see a new top seed next year in FIS
with its late 2009 acquisition of Metavante [which] ranked 10th in
2008. It seems as though each year [Fiserv and FIS] are vying to
achieve the top spot and success in that regard hinges upon the
scale of their latest acquisition.”

Fiserv president Jeffery
Yabuki said he never had any doubts about the firm’s ability to
endure the financial industry’s recent downturn, which eliminated a
handful of the banks using its technology and is an ongoing threat
to the survival of others.

“There was no question that
the industry would survive,” said Yabuki. “What I was not clear
about at the time was how the industry would evolve and how we
would evolve around it.”

Each year, the FinTech 100
ranks vertical technology vendors that derive more than one-third
of their revenue from the financial services industry.

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The result of
client-base-contraction is reflected in the FinTech 100 company
revenues.

“In 2009, the FinTech 100
achieved revenues of $53bn, compared to revenues of $52.8bn in
2008. This is less than a half% increase and pales in comparison to
an almost 10% increase from 2007 to 2008,” Massey said.

Fiserv’s revenue decreased
11% to $4.08bn in 2009, largely due to the sale of its insurance
division.

The need to upgrade banks’
core banking systems used to be the catalyst to invest in new
technology, but that is no longer the case. Banks’ and credit
unions’ budgets remain constricted, making them reluctant to embark
on major core upgrades.

There is strong interest,
though, in adding systems to enhance internet banking, bulk up
remote-deposit capture services, and add person-to-person payment
options and other features that typically are less costly and less
onerous to install.

“I don’t see core switching
as the big driver of technology spending,” Yabuki said. “It’s a big
undertaking.

“It takes a lot of energy
from a human resources perspective and the returns on that on a
standalone basis are not necessarily compelling.”

“We are very focused on
making sure we are delivering bundles of value… [and] looking at
what institutions can do to generate revenue and continue to focus
on using technology for efficiency,” he added.

While there was a notable new
entrant to the top 10– Nomura Research entered the list for the
first time and went straight on to 9th place – the other firms
listed in the top 10 remained unchanged from last year.

Other new entrants included
Moodys Analytics (46th), Six Card Solutions (53rd), Hexaware (78th)
and Actimize (83rd).

Hundsun Technologies
represented the largest positive mover on the list, jumping 18
spots from 89 in 2008 to 71 in 2009, while Fidessa jumped 17 places
from 48 to 31.

The 2010 ranking of the top 100 application/service
providers in the financial services industry is categorised and
evaluated by calendar year-end revenues and thepercentage of
revenues from sales to financial services industry
clients.

Table showing Fintech 100 - the top 20 IT vendors to the financial services industry