One core provider is connecting core banking and digital banking for smaller banks by bringing a retail banking software provider into its tech stack. Experts say this is part of a growing trend in which community banks are seeking stronger integrations of their core and digital banking systems.
Core banking provider
CSI said in a press release that the acquisition will equip the company to deliver an “integrated ecosystem of technologies” for financial institutions regardless of which core provider they work with.
The announcement comes at a time when some banks are reporting
CSI is seeking to integrate core banking, digital banking, customer engagement and lending into a single platform through a series of acquisitions, of which Apiture is the latest.
“We are excited to join CSI and create something truly special for community banks and credit unions,” said Apiture CEO Chris Babcock. “This acquisition allows us to bring our digital banking solutions to a broader audience, backed by CSI’s powerful financial technology ecosystem. Together we are building solutions that not only meet today’s digital banking needs, but also anticipate tomorrow’s opportunities for community and regional financial institutions to strengthen their market positions.”
Apiture’s platform, which includes account onboarding, open banking and data and analytics capabilities specifically for financial institutions
“By integrating Apiture’s industry-leading capabilities, especially in business banking, we are creating an even more robust platform that empowers community financial institutions to compete and grow,” said CSI CEO Nancy Langer. “This combination allows us to deliver the scale, speed and innovation our customers need while staying true to the relationship-driven service that has always defined community and regional banking.”
Cornerstone Advisors senior director Chris Miller told American Banker that community banks have been trying to bring their digital and core banking systems together for years, and the acquisition signals a shift towards core providers filling the gap and offering banks end-to-end digital services.
“CSI’s acquisition of Apiture is an enabling step toward end-to-end platforms instead of patchwork vendor ecosystems, which has been a goal of many that have come before,” he said. “By fusing core, digital, data, and business banking into one stack, CSI is raising the bar for what ‘table stakes’ digital delivery looks like for community and regional institutions. This deal will pressure other providers (think Fiserv, FIS, Jack Henry, Q2, Alkami and Lumin) to accelerate their own integrations or risk losing ground. For bankers, it means faster innovation cycles, fewer integration headaches and a clearer path to offering fintech-level digital experiences without fintech-level chaos.”
Financial details of the deal were not disclosed. Pending regulatory approvals, the acquisition is expected to be finalized in the fourth quarter of this year.
