If You Invested in Four Bank Tech Companies in 2009, You Would Have Had a Great Year

Disclaimer: I do not give investment advice, nor do I own any stocks in the 22 public companies in "Automation in Banking-2010" (AiB-10).If the investment firm I hired to take care of my wife and two generations following us is investing in bank tech companies, I wouldn't even know it. There are a couple of exhibits in AiB-10 that show the stock performance of public companies in this report. The cycle dates are April 15, so for this year, the stocks of the top four public bank tech companies delivered the following gains to their stockholders in the nine months from April to December.

Computer Services, Inc. (CSVI) 44% Jack Henry & Associates, Inc. (JKHY) 36% Fiserv, Inc. (FISV) 34% Fidelity National Information Services, Inc. (FIS) 22%

Of the 22 public companies, there are only two downsides. ACI Worldwide (ACIW) produced negative results in the price of its stock. The stock of Corporate Executive Board (EXBD), the new owner of TowerGroup, also declined in value, but I suspect no fault of the highly respected knowledge tank.

There were many sad stories in 2009 about the condition of banks. So it seems fair to say something nice about one aspect of the industry. Technology companies are doing a good job for both customers as well as owners. I really hope that didn't sound like something the new guy in Dallas said a few years ago after Katrina.

When it comes to delivery to customers, I don't think it's ever been better. After 37 years of watching, I can say with a clear conscience, not a PR guy's hype, that bank technology has never been better.