Thought Leaders in Financial Technology: Rich Longo, President of NXTSoft (Part 3)

Sramana Mitra: Let me ask a bit of a 30,000-foot level question to synthesize what you have said so far. Is your company set up as a platform and you have all these different use cases that you build on top of that? Or is it a product company? How is it structured?

Rich Longo: It is a platform company. We have what we call the Omni platform which represents all of our data components. Within the platform, we have the connectivity component OmniConnect, conversion piece OmniData, and our data analytics and risk management component Omnilytics. 

Sramana Mitra: All your use cases are FinTech use cases. 

Rich Longo: Yes, because that is where our company was born out of. We have approximately one-half of all the financial institutions, both in credit unions and banks in the United States.

Sramana Mitra: Are all the use cases and solutions that you are talking about homegrown built or are you also working with an ecosystem of development platforms?

Rich Longo: We constantly work with institutions and other FinTech companies to help them automate their solutions and attract value for clients. If you go on our site, we have a list of clients that resell our solutions.

Some of our clients don’t even know that they are operating our solutions. We are a value-added reseller to them. We have both an organic and inorganic sales channel. The clients that do resell our solutions see the value because we connect to over 400 disparate solutions. They can come to us and 90% of the time for a community bank or community union, we can provide them easy connectivity across all of their systems.

We provide easy connectivity to that one provider who is selling digital banking, core banking, check imaging systems, or whatever it might be because they might not have the breadth and connectivity.

Sramana Mitra: How big is the company?

Rich Longo: We have about 3,500 financial institutions in the US. Our company is just about 135 people. We do about $32 million in revenue. 

Sramana Mitra: How big is your network of VARs?

Rich Longo: We are just shy of a hundred. 

Sramana Mitra: Could you double click down on the VARs and talk a little bit about what you see. It sounds like you have a developer ecosystem that is building new applications and products. Are these VARs IVF or service companies? What are you seeing? 

Rich Longo: They are both. They are what we call Banking-as-a-Service. It’s cloud-deployed solutions that maintain the updates. It’s consumable similar to a consumer using QuickBooks on Intuit platform, for example. That’s why they are highly dependent on this ecosystem of connectivity.

If their institution is using a solution like that, more connectivity, more the value of that toolset. You can even compare us to Salesforce and Neilsoft, which was acquired by Salesforce. But it’s very broad and more horizontal in their industry approach. Financial institutions never really trust that. They like going to a company that has the credentials – the proof, the FCIC, FFIEC, NCUA, OCC. They are comfortable with the way that you are handling this if you have those.

Securing compliance is another cornerstone of what we do. We do it in a safe way. When you are a FinTech provider like an FIS, Finastra, and Abrigo, they depend on us for these services. 

This segment is part 3 in the series : Thought Leaders in Financial Technology: Rich Longo, President of NXTSoft
1 2 3 4