October 2012

ANNUAL SPECIAL REPORT

TOP 10 IN FINTECH
1 #2 #3 #4 #5
# FIS Tata Fiserv Sungard NCR

Find out who made the upper echelon of this years ranking of financial technology providers.

First Community Bank and Team Capital share the stories behind their recent core conversions. Plus: Citis multi-year project rolls on. Page 24

CORe OVERHAULS

ALSO InSiDe
How to Manage Cloud Vendors The Big Risks of Big Data The Benefits of Merchant-Funded Rewards
A SUPPLEMENT TO

The GLOBaLiZatiOn Of FinTech

Forty percent of this years top 100 financial technology companies are overseas.

americanbanker.com/ntech100

October 2012

1 FIS
HQ: Jacksonville, Fla. Frank Martire, Chairman and CEO

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FRANK R. MARTIRE learned one of the most important lessons of his career in the 1970s, when he was in his 20s, working at Connecticut National Bank. The chairman and chief executive of FIS was then fresh out of Sacred Heart University of Faireld, Conn., and exhausted after working all night on a project that he just couldnt complete. The goal of the project wasnt important, but what he was about to hear from his boss was. I said: I did everything I could. I did the best I could and we just didnt get the project done, Martire recalls. But he [answered]: Mr. Martire dont ever confuse [effort] for results. That is now one of the guiding principles of FIS business, which includes core processing among a broad suite of nancial technology products. Its something that stuck with me throughout my whole career. I want to get results, Martire says. The attitude of my employees to our clients is a reection of me personally. Either we do it well or we dont do it. ITS A STRATEGY THAT HAS SERVED HIm WELL. This year, FIS is number one in the FinTech 100, having racked up $5.7 billion in revenue in 2011, 87 percent of it from the nancial services industry. But FISs business is constantly changing. On the horizon are managed services that the company plans to offer to banks. Those bank clients are having to compete with a host of potential disruptive competitors

including nancial technology start-ups and expanding prepaid card companies. As we speak, the industry is going to have to get more efcient in the delivery of products and services, says Gary Norcross, FISs president and chief operating ofcer. With the increased burdens around risk, around fraud, around emerging competitors. That will inevitably cause banks to outsource some of their systems. Norcross projects that by 2015, most banks, if not all of them, will be doing some sort of back ofce processing in the cloud. Banks are going to have to turn themselves more into marketing engines, Norcross says. They are going to have to compete and drive, but because of these non-nancial institution competitors, theyll have to

The attitude of my employees to our clients is a reection of me personally. Either we do it well or we dont do it.
really come into the market in a meaningful way, he says. They are going to have to change the way that they do sales.... And nancial institutions, unless they are in the top 50 in the world, they are not going to be able to completely manage their back ofce. Martire says everyone at FIS is on-board for the change thats on the way. Employees in departments ranging from sales to IT are on call to handle the needs of FISs customers. Thats why FIS only recruits from within the nancial services industry. Martire pledges individually, and to every one of FIS customers that anyone that leaves a message will get a call back in less than 24 hours, even if that call back is from him. What I cant guarantee to you is that we will never make a mistake, says Martire, who speaks in a hushed but stern tone. But what I can tell you is I have zero tolerance for non-responsiveness. By Sean Sposito

FinTech 100 | Ranking

Top 100 Companies in FinTech

RANK CY 2011 REVENUE (MILLIONS) 2012 2011 COMPANY NAME OWNERSHIP TOTAL FINANCIAL SERVICES % FS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 1 3 2 4 5 6 8 12 9 10 7 11 13 14 15 17 16 18 31 19 22 NR 36 21 27 24 25 34 32 30 28 26 20 29 41 33 37 38 48 42 23 44 45 43 46 70 47 54 67 51 FIS Tata Consultancy Services Limited (TCS) Fiserv, Inc. SunGard NCR Corporation Diebold, Incorporated First Data Corporation Cognizant Technology Solutions Nomura Research Institute, Ltd. Infosys Limited Lender Processing Services Wincor Nixdorf Inc. Total System Services, Inc. (TSYS) CA Technologies DST Systems SAS Institute CoreLogic Jack Henry & Associates, Inc. Misys Equifax EDB Ergo Group Genpact Ingenico Broadridge Financial Solutions, Inc. FICO Experian Group Limited Temenos Group AG ACI Worldwide Syntel, Inc. Fidessa group PLC Murex IPC Systems, Inc. Oberthur Card Systems S.A. Itautec S.A. D+H Open Solutions Inc. SS&C Technologies, Inc. Polaris Financial Technologies Wolters Kluwer Financial Services Advent Software, Inc. MphasiS (An HP Company) Moodys Analytics TransFirst Holdings, Inc Harland Financial Solutions 3i Infotech (Includes 3i Infotech Billing & Payments) Six Payment Services SimCorp A/S L&T Infotech Pegasystems Inc. Aegis Global Communications Jacksonville, FL Mumbai, India Brookfield, WI Wayne, PA Duluth, GA North Canton, OH Atlanta, GA Teaneck, NJ Tokyo, Japan Bangalore, India Jacksonville, FL Paderborn, Germany Columbus, Georgia Islandia, NY Kansas City, MO Cary, NC Santa Ana, CA Monett, MO London, UK Atlanta, Georgia Oslo, Norway New York, NY Paris, France Lake Success, NY Minneapolis, MN Costa Mesa, CA Geneva, Switzerland Naples, FL Troy, MI London, UK Paris, France Jersey City, NJ Nanterre, France So Paulo, Brazil Toronto, Canada Glastonbury, CT Windsor, CT Chennai, India Minneapolis, MN San Francisco, CA Bangalore, India New York, NY Broomfield, CO Lake Mary, FL Mumbai, India Zurich, Switzerland Copenhagen, Denmark Mumbai, India Cambridge, MA Irving, TX Public $5,746 Public 9,767 Public 4,337 Private 4,499 Public 5,443 Public 2,836 Private 10,714 Public 6,121 Public 4,109 Public 6,825 Public 2,090 Public 2,983 Public 1,809 Public 4,754 Public 1,744 Private 2,725 Public 1,339 Public 994 Public 897 Public 1,960 Public 2,108 Public 1,600 Public 1,300 Public 2,167 Public 634 Public 4,337 Public 473 Public 465 Public 642 Public 445 Private 445 Private 506 Private 1,185 Private 923 Public 733 Private 383 Public 371 Public 372 Public 340 Public 326 Private 913 Public 722 Private 865 Private 286 Public 427 Private 424 Public 252 Private 643 Public 417 Private 700 $4,999 4,250 4,120 3,190 2,999 2,639 2,574 2,518 2,489 2,418 2,027 1,969 1,809 1,807 1,116 1,090 1,030 994 897 804 801 669 611 520 501 477 473 450 450 445 445 439 415 401 390 383 371 365 340 326 326 325 311 286 267 265 252 249 234 231 87 44 95 71 55 93 24 41 61 35 97 66 100 38 64 40 77 100 100 41 38 42 47 24 79 11 100 97 70 100 100 87 35 43 53 100 100 98 100 100 36 45 36 100 63 64 100 39 56 33

American Banker/Bank Technology News/Financial Insights FinTech 100 (2012)

FinTech 100 | Ranking

Top 100 Companies in FinTech

RANK CY 2011 REVENUE (MILLIONS) 2012 2011 COMPANY NAME OWNERSHIP TOTAL FINANCIAL SERVICES % FS 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 49 61 64 55 58 52 53 57 59 NR NR 63 62 79 NR 72 86 80 74 71 NR NR 73 83 78 81 75 84 77 NR 82 68 91 NR 87 NR NR NR 99 94 90 89 NR 96 NR 97 98 92 NR 100 GFT Technologies AG Calypso Technology Fundtech Ltd. Charles River Development Collabera Ness Technologies GlobeOp Financial Services Linedata Services S.A. BancTec, Inc. Computer Services, Inc. Simplex Consulting, Inc. Interactive Data Corporation Online Resources Corporation Virtusa Corporation BRQ IT Services Hundsun Technologies INC VASCO Data Security International, Inc. Luxoft Open Link Financial NICE Actimize NIIT Technologies Inc Silverlake Axis Bravura Solutions Bottomline Technologies Eagle Investment Systems LLC Clear2Pay SmartStream Hexaware Technologies Ltd. Viewpointe Carlisle & Gallagher Consulting Group Callatay and Wouters ISGN Corporation Scorto Corp. ARGO Celero Solutions Inc. TransCentra Inc. GBST Holdings Limited Diasoft Financial Technologies (I) Ltd Eze Castle Integration COCC Investment Technology Group, Inc. TAS Group Multifonds eFront, S.A. WAUSAU Financial Systems FNC, Inc. Nucleus Software Exports Ltd. Primatics Financial Novantas, llc Stuttgart, Germany Public San Francisco, CA Private Jersey City, NJ Private Burlington, MA Private Morristown, NJ Private Teaneck, NJ Public London, UK Public Neuilly-sur-Seine, Paris Public Irving, TX Private Paducah, KY Public Chuo-ku, Japan Private Bedford, MA Private Chantilly, VA Public Westborough, MA Public Sao Paulo, Brazil Private Hangzhou, China Public Oakbrook Terrace, Illinois Public Moscow, Russia Private Uniondale, NY Private New York, NY Public Atlanta, GA Public Kuala Lumpur, Malaysia Public Sydney, Australia Public Portsmouth, NH Public Wellesley, MA Public Diegem, Belgium Private London, UK Private Navi Mumbai, India Private New York, NY Private Charlotte, NC Private Brussels, Belgium Public Melbourne, FL Private Cupertino, CA Private Richardson, Texas Private Calgary, Canada Private Norcross, GA Private Milton, Australia Public Moscow, Russia Private Mumbai, India Public Boston, MA Private Avon, CT Private New York, NY Public Rome, Italy Public Luxembourg Private Paris, France Private Mosinee, WI Private Oxford, MS Private Noida, India Public McLean, VA Private New York, NY Private $352 220 210 208 441 569 221 185 254 174 170 868 155 262 187 166 168 252 267 124 311 122 123 211 115 111 109 308 100 96 94 93 125 86 81 161 76 76 75 70 69 572 64 51 51 77 50 49 45 39 $229 216 210 208 205 193 189 185 178 174 170 156 155 151 140 140 137 128 127 124 121 120 119 118 115 111 109 105 100 95 94 93 92 86 81 81 76 75 72 70 69 69 58 51 51 50 50 49 45 39 65 98 100 100 46 34 86 100 70 100 100 18 100 58 75 84 81 51 48 100 39 98 97 56 100 100 100 34 100 99 100 100 74 100 100 50 100 99 96 100 100 12 90 100 99 65 100 100 100 100

American Banker/Bank Technology News/Financial Insights FinTech 100 (2012)

FinTech 100 | Methodology

METHODOLOGY
How the Rankings Are Calculated
IDC FINANcIAL INSIGHTS relied on many sources to gather the data used in the FinTech 100 and Enterprise 25 rankings. The research rm, along with American Banker, Bank Technology News and William Mills Agency, requested nancial information from several thousand technology companies globally. Publicly available resources such as Hoovers, Edgar, company lings, and company Web sites were used to validate and augment data. IDC Financial Insights also used proprietary research, previously published reports, internal research under way, and IDC resources. IDC Financial Insights determined eligible revenue. To be included, revenues must originate from software, hardware and IT services sold to nancial institutions. Not included are revenues from any network, telecommunications, electronic exchanges, or data service (e.g., market/credit) providers. For vendors that provide qualifying services and solutions in addition to nonqualifying ones, we used just the qualifying portion of their revenue as the basis for our rankings. This is why vendors appear on the FinTech 100 list with revenues below 33%. Companies on the FinTech 100 list are nancial services technology providers that derive more than one-third of their total global revenue from the nancial services industry. Enterprise 25 companies are horizontal technology rms that derive less than one-third of their revenues from nancial institutions. IDC Financial Insights and American Banker made a concerted effort to include all possible candidates for the rankings. Some companies in qualifying industries that submitted forms did not make the rankings because of insufcient revenue or inability to validate submitted data. For companies outside the U.S., we calculated U.S. dollar gures using IDCs standard exchange rate for the year end 2011.

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