Mr. Art Gillis

GLG News^SM Analyses by Art Gillis(?)

There Are 814 Good Reasons For A Bank To Switch To A New Core System. One Is Usually Enough.

October 20, 2008

Analysis of:Despite Tons of Talk Banks Don't Upgrade | www.americanbanker.com

As long as the de novo movement continues, there will be new core sales.  Last year, 39% of new core sales were to de novo banks. In my opinion, there are 1,280 FIs that are ripe for a better core system and the only way they’ll get it is if vendors commission Buffett/Gates sales types to make it happen.  Waiting for a brand new core system to make it happen, the likes of which the ten offshore companies sell everywhere else but the U.S., will only result in disappointment.  Bankers buy functionality, not architecture, and today’s top U.S. systems have more functionality than the economy has bad news.  In fact, some of that functionality (for example, Risk Management) helps to skirt the reasons for economic bad news.  And remember, I’m not a salesman.  I show up after the bank CEO bites the bullet to replace the core.  With so many other bullets that bankers are dodging these days, I don’t expect I’ll get many calls.

HP and EDS - Is it a Win-Win? I Predict a Lose-Lose

June 6, 2008

Analysis of:HP to Acquire EDS for $13.9 Billion | www.hp.com

My experience with EDS goes back to 1962, not because it was day one for EDS, but instead, to tell you how bad I am at predicting success stories.  What I’m good at is predicting failures. 

If You’re Not Happy With Your Bank’s Core System, There are 101 Solutions Offered by 32 Vendors Who Would Love to Talk to You, Maybe

May 19, 2008

Analysis of:High Five for Fiserv | online.barrons.com

First, a few definitions for the sake of context clarity  -  A “solution” is any brand name system offered as an in-house system or outsource service, and driven by the owner of the system, or a third party.The group of 32 vendors includes any company that has customers that rely on that company to keep their core system running, but all 32 vendors may not be in the business of selling their system to the entire U.S. population of Finical Institutions (FIs).  Thus the reason for the “maybe” in the title.  The distinction of selling core systems to any FI in the world applies to about a dozen companies.

There are Fewer Bank Tech Companies but More Solutions in the Marketplace

April 14, 2008

Analysis of:The FutureNow List | www.americanbanker.com

In 2001 there were 165 companies selling 223 solutions to banks, thrifts and credit unions.Today there are 71 companies selling 306 solutions. That’s 57% fewer companies; 37% more solutions.During the past seven years there were a total of 162 mergers and acquisitions in the account processing sector of banking technology.

Congratulations to all who were in the bank tech world in 1985, and are still here to remember

March 25, 2008

Analysis of:Jack Henry Banking(TM) Expands Client Relationships With Cross Sales of ArgoKeys(R) Branch Sales Automation Platform | www.earthtimes.org

My bookcase contains 22 past editions of Automation in Banking.  The 23rd is still in the oven.  The 22 are dog-eared because I have had to refer to them many times to answer questions from very intelligent readers who had a need to know.  Last week I read the 1985 Edition, and here are some highlights that got my attention:

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