Metavante & Temenos End Core Banking Development Partnership

Bank Technology News | July 2009
By John Adams

Bank Tech News writes that Fidelity National Information Services needs a plan if they are to acquire Metavante

"One piece of awkward fallout from Fidelity National Information Services’ planned $3 billion takeover of Metavante was removed last week when Temenos and Metavante agreed to end their core banking development partnership.  Metavante will retain a license to use the customer information management components of Temenos’ core system, and the two firms will jointly market Temenos T24 product in the U.S.

Temenos first cried foul when Metavante in March tried to unilaterally terminate the Temenos partnership, signed by the two firms two years ago to develop and sell a core banking platform in the U.S. Temenos said the agreement was binding to successors in the case of an acquisition. Last week, Temenos lauded the new agreement as “amicable” and said it resolved “all issues associated with the agreement.”

What analysts say is still unresolved is the future of Metavante’s core banking strategy if and when the Fidelity acquisition closes, given Metavante initially entered into the agreement with Temenos to bolster Metavante’s ability to providing a robust platform to American banks via a partnership."

“If I were a Metavante IBS customer, I’d want direction from Fidelity on the future of my platform,” says Bart Narter, an svp in Celent’s banking group. “Fidelity needs to come up with some sort of plan.”

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FIS, Fidelity National Information Services, Metavante, Temenos

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