π° Financial Models
Core Banking Integrations
Core banking systems are the central nervous system of every bank β they manage the ledger, process transactions, handle account records, and govern every dollar in and out. The "Big 3" providers (Fiserv, Jack Henry, FIS) collectively serve the vast majority of US banks and credit unions. For ModernFi, **each new core integration is a discrete distribution unlock** affecting thousands of institutions simultaneously. This is their Series B priority.
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How It Works
The Big 3 Core Providers (collectively serve 70%+ of US banks): βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ β Fiserv 42% of US banks, 31% of CUs 3,800+ FIs β β Products: Premier, Precision, DNA, Cleartouch β β AppMarket: fintech marketplace (ModernFi is listed!) β β Market cap: ~$100B+ (largest of the three) β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ€ β Jack Henry 21% of US banks, 12% of CUs 1,670 core clientsβ β Products: SilverLake (banks), Symitar (CUs), Banno (digital) β β Strength: community banks + credit unions β key for CUSO β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ€ β FIS 9% of US banks, 3% of CUs enterprise focus β β Products: Horizon, IBS, Modern Banking Platform β β Strength: large/mid-size banks by asset size β βββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββββ Also Critical: Alkami β digital banking platform (layer between core and end user) 301 client institutions, 21M registered users, $445M projected 2025 revenue Target: FIs with $100M-$450B in assets (~250M digital users, ~10% penetrated) CUs on Alkami 5+ years outperform peers in deposit growth, loan growth, revenue/FTE Why Integration Is Hard: 1. Legacy architectures: Many cores built in 1970s-1990s (COBOL, mainframes) 2. Batch processing: Cores settle end-of-day β API exposure doesn't make data real-time 3. Budget reality: FIs spend $350B/yr on legacy maintenance (70-80% of tech budgets) 4. Contractual lock-in: Multi-year agreements, data migration complexity 5. Political barriers: Core vendors protect their ecosystem 6. Each bank customizes their core differently β same product, different configs 7. Compliance: Every integration touches regulated data (PII, account info) Integration Timelines (via Fiserv as example): Communicator Open middleware: ~30 days (no implementation fee) Direct integration: 2-4 months ($60K implementation fee) Complex/deep integration: 6-12 months Full core replacement: 3-5 years, hundreds of millions of dollars