TowerGroup Experts Offer Insight on Fiserv Acquisition of CheckFree

1 August 2007

Fiserv sinks its teeth further into top-tier banking market

This morning Fiserv, a provider of information management systems, announced that it will acquire CheckFree, a banking and payments technology provider.

Noted TowerGroup experts George Tubin, research director in the Delivery Channels practice, Susan Feinberg, research director of the Wholesale Banking practice, and Jennifer Roth, a senior analyst in the Global Payments practice, are available to provide their insights into Fiserv’s announcement.

Below are some of their initial observations:

• This acquisition positions Fiserv to more fully support the top-tier consumer banking institutions served by CheckFree (and by Corillian, the leading consumer online banking application provider recently acquired by CheckFree). This is especially important as more consumer banking interactions move to the Internet (TowerGroup has recently reported that more banking transactions now occur in the online channel than via the branch, call center, or ATM channels).

• Integrating CheckFree’s payment processing experience, extensive network, and e-bill distribution reach will provide Fiserv’s existing financial institution consumers with a superior bill payment experience.

• This acquisition squarely places Fiserv as one of the strategic partners for leading banks in the Treasury Management business. By combining CheckFree's market leadership for ACH and Reconciliation software and the recent check processing and imaging assets acquired from Carreker with Fiserv's existing product lines, such as BankLink and RemitStream, the new payments processing entity will be able to offer a virtually complete cash management offering to banks of any size.

• By expanding the BillMatrix payment solutions to include presentment and walk-in payment capabilities with CheckFree’s i-Series and CheckFreePay, Fiserv rounds out its electronic bill presentment and payment offering.

• It is critical for Fiserv to improve its ability to service and partner with top-tier institutions to realize the full benefits of this acquisition.

• In order for this acquisition to succeed and meet Fiserv's strategic and monetary goals, Fiserv must break from its history of purchasing companies, identifying synergies and cost savings, and then not following through by fully integrating its solution sets.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development