Wisconsin-based digital payments giant Fiserv is levelling up its digital banking strategy. It has purchased the remaining ownership stake in Floridian cloud-native banking solution provider Finxact for approximately $650 million.
“Through this combination, Fiserv will create a streamlined path for clients to offer digital solutions to their customers,” said Fiserv CEO Frank Bisignano in a statement announcing the purchase.
Finxact CEO and Co-Founder Frank Sanchez describes the acquisition as a necessary step in the continued growth of Fiserv in its mission to provide critical technological architecture to regional and local banking institutions. Fiserv has been an investor in Finxact since the company’s founding in 2016, and has long relied on its cloud-based digital banking solutions.
With Finxact’s technology added to Fiserv’s arsenal, Sanchez said in an announcement of the purchase, “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.”
For a company like Fiserv that is intent on bringing next-level solutions to its partners, the purchase of a company like Finxact is only the beginning. Fiserv has also announced recent partnerships with Mastercard and other major financial players to issue biometric cards in select markets.