Banks are still doing more talking about new technology than buying it, forcing large vendors to rely on existing work to sustain financial performance.

"Although there is a sense that the sector outlook has started to stabilize, we do not yet see that headline turning into any material change in current-year buying behaviors," Fiserv president and CEO Jeff Yabuki told analysts during a recent discussion of the vendor's second quarter earnings. Yabuki and Lee Kennedy, Fidelity's president and chief executive, both say a rebound is unlikely until 2010 at the earliest. "Everything we have seen in our conversations with our top-tier banks is that sometime toward the end of the year, as we roll into next year, we will see an improvement," Kennedy says.

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