Payments and financial services platform Fiserv, Inc. has inked a deal to buy cloud-native banking solution Finxact, Inc., as part of the next step in its digital banking strategy, allowing increased account processing, digital and payments solutions.
“We’re accelerating the delivery of innovative digital banking experiences for our clients and elevating their ability to compete in a rapidly changing market,” said Fiserv President and Chief Executive Officer Frank Bisignano said in a Monday (Feb. 7) press release.
“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,” he said.
The acquisition allows Fiserv to “create a streamlined path for clients to offer digital solutions to their customers,” said Bisignano, because Finxact “enhances our ability to support a growing number of financial institution and business clients.”
Under the terms of the deal, Fiserv will acquire the remaining ownership stake in Finxact for approximately $650 million after being an early investor in the company shortly after it was founded in 2016.
“Joining with Fiserv is a tremendous opportunity for Finxact,” Finxact Chairman and CEO Frank Sanchez said in the announcement. “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,” he said.
Related: Polish Bank Rolling Out Biometric Cards Through Thales, Fiserv and Mastercard
In December, Fiserv partnered with technology company Thales and payments giant Mastercard on biometric cards across Poland through Bank Pocztowy.
Bank Pocztowy says the biometric cards offer increased security and are safer for cross-border transactions. Thales developed the fingerprint-enabled card, put together its packaging and is overseeing the cards’ distribution. The companies say the fingerprint biometric sensor is designed to be more accurate than the sensors on mobile devices.
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