Cores Shift to the Cloud, CUSOs Roll Out New Tools: Fintech News

Recent fintech-related announcements included core systems going to the cloud and integrating with e-signature tools, a couple of acquisitions, a new predictive calculator, and payments, security system and ID verification-related upgrades.

The Middlebury, Vt.-based eDOC Innovations, a CUSO specializing in mobile enterprise digital transaction management, announced the completion and rollout of an e-signature integration alternative for the Memphis, Tenn.-based CUSO Share One’s core system, NewSolutions, a SQL and Windows-based platform serving a growing client base of credit unions.

Finastra, which has its U.S. headquarters in Lake Mary, Fla., brought its core banking platform, Fusion Phoenix, to the cloud. Finastra selected Azure as the platform providing its cloud-hosted solutions. Finastra said the addition of Fusion Phoenix is part of its ongoing commitment to offering its clients choices when it comes to cloud deployment for all major products. Fusion Phoenix currently has 10 credit unions live on its hosted core solution, and Finastra will migrate all of these to the public cloud later this year.

The Des Moines, Iowa-based regulatory compliance firm PolicyWorks announced it has acquired ViClarity, an international technology provider based in Ireland. ViClarity distributes the governance, risk and compliance (GRC) platform of the same name, which it developed and launched in 2008. More than 300 clients in financial services and other regulated industries across Europe and North America now use the ViClarity platform, which was initially developed for credit unions. PolicyWorks has served as a resource for more than 1,200 credit unions across the country through its compliance and audit services.

The Grand Rapids, Mich.-based CU*Answers, a credit union-owned core data processor, kicked off a development project to build a new calculator intended to evaluate a membership’s relationship and status with a credit union. Dubbed “Nostradamus,” the new engine allows credit unions be more predictive in their sales efforts with members. It is based on a credit union-defined set of parameters and will present a list of possible products and services to sell to a member based on their unique situation.

The Columbus, Ohio-based CUSO Sherpa Technologies announced the launch of Payigy, a payments solution designed to enable greater payment flexibility and deepen relationships with indirect auto loan members via a simplified digital user experience, modeled to emulate biller-direct payment offerings. Achieva Credit Union ($1.8 billion, Dunedin, Fla.), Gulf Winds Credit Union ($120 million, Pensacola, Fla.), Kemba Credit Union ($1.03 billion, West Chester, Ohio), KEMBA Financial Credit Union ($1.5 billion, Gahanna, Ohio) and Pathways Financial ($314 million Columbus, Ohio) collaborated with Sherpa on the initial solution concept.

The Minneapolis-based Entrust Datacard, which provides trusted identity and secure issuance technology solutions, announced the nShield Issuance Hardware Security Module, designed to help create an integrated ecosystem for security, simplicity and serviceability for the payment card systems and secure issuance environments. Entrust Datacard will integrate nShield Issuance HSMs to enhance operational efficiency and security for its high-volume card issuance solutions and instant issuance systems. The nShield Issuance HSM enables Entrust Datacard to deliver an end-to-end secure issuance and key management solution for its financial and government card issuance solutions.

The Glastonbury, Conn.-based Payrailz, a digital payments company offering smarter, more engaging payment experiences to U.S. credit unions and banks, announced the addition of four credit unions to its credit union sponsored payments CUSO, CU Railz. Unify Financial Credit Union ($3.01 billion, Torrance, Calif.), Evansville (Ind.) Teachers Federal Credit Union ($1.85 billion), Pen Air Federal Credit Union ($1.6 billion, Pensacola, Fla.) and Nusenda Credit Union ($2.5 billion, Albuquerque, N.M.) are the most recent investors in the CUSO. These four credit unions will join the existing six founding members in partnering with Payrailz to develop new, innovative technologies and experiences.

The Brookfield, Wis.-based fintech provider Fiserv, Inc. announced completion of its previously announced transaction under which Motive Partners-led investors acquired a 60% stake in the Investment Services Business of Fiserv. Fiserv received approximately $510 million in net after-tax proceeds and retained a 40% equity interest in the business.

The St. Petersburg, Fla.-based payment/credit card CUSO PSCU announced it is in the process of a proof of concept with the Denver-based CULedger and Baxter Credit Union ($3.9 billion, Vernon Hills, Ill.) on CULedger’s MemberPass solution, which provides a secure way for credit unions to verify members. MemberPass, formerly known as MyCUID, allows credit unions or CUSOs to have one digital credential that serves as member verification for contact centers, loan applications, large and higher risk transactions bill pay, external ACH and wire transfers.