FIS sells Certegy cheque business – FinTech Futures
FIS has checked out of its Certegy Check Services business unit by selling all the assets to US-based investment management firm Variant Equity Advisors.
Financial details were not disclosed
There aren’t a lot of details, such as the acquisition price, but the vendor says the sale is “consistent with FIS’ strategic focus on providing software-based solutions to its financial institution, corporate and other clients”.
With the closing of this transaction at the end of August, the Certegy business became an independently operated company. However, FIS will continue with its cheque processing service.
Certegy (previously Equifax Check Services) had been an FIS subsidiary since 2006.
Elsewhere, FIS has been busy on the core banking front.
For example, in an exclusive last month, US-based MUFG Union Bank selected a new core system, Profile from FIS, it is understood. The solution will be delivered on a hosted basis.
Stats served up
If you’re wondering about cheque usage in the US, then the “Federal Reserve Payments Study – 2017” has some details.
According to the Fed, restated estimates show that total commercial cheque paid decreased 3% a year, by number, from 2012 to 2015, which is slower than the previously reported decline, and increased 2.2% a year by value, a reversal of the previously reported decline.
More recent estimates for 2015 to 2016 show declines of 3.6% by number and 3.7% by value in commercial cheques paid by a group of the largest depository institutions.
In terms of numbers and dollars, the Fed has stats going back to 2015.
In that year, the total number of cheque payments was 17.9 billion. While the total value came to $28.97 trillion.