South African financial giant FirstRand Group, managing over $130 billion in assets, has chosen Fiserv’s Finxact as its core banking system to support a major digital transformation. This marks a significant step in the bank’s efforts to enhance its technology infrastructure and improve service delivery.
Finxact: A Cloud-Based Banking Solution
Fiserv, a global financial technology company, acquired Finxact in 2022 for $650 million. The cloud-native core banking platform provides a suite of services, including:
• Treasury management
• Credit card processing
• Account opening solutions
• Anti-money laundering (AML) compliance
• Data analytics
• Payment processing
Finxact is already being used by several U.S. banks, such as First Horizon, Zenus Bank, and BetaBank. However, FirstRand is the first financial institution outside the United States to adopt this advanced core banking technology.
Why FirstRand Chose Finxact
FirstRand plans to leverage Finxact to drive digital innovation across its key subsidiaries:
• FNB (First National Bank) – Focused on retail and commercial banking
• RMB (Rand Merchant Bank) – Specializing in corporate and investment banking
The banking group aims to enhance its mobile and online banking platforms while also accelerating product launches. Additionally, Finxact’s transaction processing engine will be integrated to support transactions across multiple asset classes, currencies, and time zones.
This move aligns with FirstRand’s broader strategy of modernizing its banking operations to stay ahead in a competitive financial landscape.
A Legacy of Innovation
Finxact was founded in 2016 by Frank Sanchez, a well-known name in banking technology. He previously developed Profile, another widely used core banking system, which is now owned by FIS, a direct competitor of Fiserv.
With Finxact under its umbrella, Fiserv is expanding aggressively into international markets.
Fiserv’s Expansion in EMEA
Commenting on the partnership, Katia Karpova, Executive Vice President and Head of EMEA at Fiserv, emphasized the platform’s potential in the region:
“We see big opportunities for Finxact in the EMEA region, as banks aim to enhance their digital transformation.”
This signals a strategic push by Fiserv to offer Finxact to more banks outside the U.S., particularly in Europe, the Middle East, and Africa (EMEA).
Looking Ahead
For FirstRand, integrating Finxact is expected to streamline banking operations, improve customer experiences, and position the bank as a leader in digital financial services. The partnership underscores a broader trend where banks are shifting to cloud-based core banking systems to remain competitive in a fast-evolving financial sector.
