FinTech firm Fiserv has signed a definitive agreement to purchase Finxact, a company that develops cloud-native banking solutions.
According to Fiserv, the transaction advances the Fiserv digital banking strategy, expands the company’s leading account processing, digital and payments solutions and positions Fiserv as the partner of choice for clients looking to scale, accelerate and expand the digital banking experiences they deliver to their customers.
The company added that Finxact brings domain expertise and a transformative approach that will enable Fiserv to introduce ‘innovative paradigms’ in open banking and FinTech integrations, enabling clients to dramatically improve the agility of their digital banking operations and substantially reduce time to market for new customer experiences.
The transaction – subject to customary approvals and closing conditions – is expected to close later in 2022.
Fiserv CEO and president Frank Bisignano said, “We’re accelerating the delivery of innovative digital banking experiences for our clients and elevating their ability to compete in a rapidly changing market. 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.
“Through this combination, Fiserv will create a streamlined path for clients to offer digital solutions to their customers. Finxact also enhances our ability to support a growing number of financial institution and business clients. We look forward to welcoming Frank Sanchez and the talented Finxact team to Fiserv as we continue to grow our client banking portfolio.”
Finxaxct chairman and CEO Frank Sanchez added, “Joining with Fiserv is a tremendous opportunity for Finxact. 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.”
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