NCR makes “fundamental” changes to financial services business
Nuti: “We are fundamentally and permanently changing our largest line of business.”
NCR is to pay $1.65 billion for Digital Insight Corporation, a Californian on-line and mobile banking solutions provider primarily focussed on mid-market retail banking.
It has also bought UK-based fraud prevention company Alaric Systems for $84 million.
The move to buy both firms is intended to ensure that the vendor isn’t left behind by the long-term shift of consumers away from physical banking towards on-line and mobile. NCR is planning to create an enterprise software platform that will cover all channels, including mobile, on-line, branch and ATM.
“This is a historic day for NCR,” said Bill Nuti, chairman and chief executive at NCR. “For the past eight years, NCR has been executing a deliberate and thoughtful strategic agenda to profoundly reinvent the company. Over that time, we have orchestrated a patient balance between legacy issues and growth initiatives that has led to delivering a compelling value proposition for all of our stakeholders. Today, we are fundamentally and permanently changing our largest line of business, financial services. With the announcements of our agreement to purchase Digital Insight and our acquisition of Alaric Systems, NCR becomes a powerful, global fintech solutions provider enabling retail banks to deliver on the promise of omnichannel capabilities – on top of an unparalleled, innovative software platform.”
Digital Insight’s tools are used by 12 million on-line banking users and 4.7 million mobile users. NCR says that the acquisition would mean its own customers would get access to additional mobile, bill pay and on-line banking services.
Alaric’s tools are designed to intercept suspicious transactions before they are completed – so will form part of NCR’s plans to make the new platform secure. It also says that the deal will help banks to reduce costs and develop new solutions such as nimbler branches that draw on omnichannel services.
