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Fiserv and Atom Bank launch cloud platform for new lenders in the UK

Matthew Finnegan | July 4, 2014
Aims to reduce costs for new entrant banks.

He added: "What Agliti allows banks to do is focus on the job of banking, and that is the quality of the service and the layers of innovation you have above the banking part - such as bringing other services like loyalty and reward."

The Agiliti service will be available through a SaaS model or a traditional outsourced, hosted approach through the tier 4 datacentres run by provider Blue Chip.

The price will vary depending on the number of customer accounts, starting at around £5 per year for a customer with just a savings account, to around £25 per year for multiple accounts.

Cloud model benefits
According to Ovum chief analyst for financial services technology Daniel Mayo, the service "makes a lot of sense" for new entrants, but the cloud economic model will put pressure on Fiserv, which has invested in setting up the service but will receive revenues slowly from SaaS customers.

"There are a lot of risks and costs involved in creating your own IT system infrastructure so most new banks would want to go down the SaaS route, particularly as Fiserv are offering volume-based pricing," he said.

"In all, it is a good idea. The main issue is that the vendor bears a lot of the upfront investment risk, which is why others have been reluctant. But Fiserv has the experience and financial fire-power to make this bet."

He added: "There is only room in the market for two, max three players really, so there is advantage here to being first mover."


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