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                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 10-Q


(Mark One)


[X]           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

               For the quarterly period ended September 30, 1996

                                      OR
[  ]         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

            For the transition period from __________ to __________

                       Commission file number:  33-45417

                             THE BISYS GROUP, INC.

            (Exact name of registrant as specified in its charter)

          DELAWARE                                        13-3532663

(State or other jurisdiction of                       (I.R.S. Employer 
incorporation or organization)                       Identification No.)

                   150 Clove Road, Little Falls, New Jersey
                                     07424

                   (Address of principal executive offices)
                                  (Zip Code)

                                 201-812-8600

             (Registrant's telephone number, including area code)



Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes  X   No ___

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:


                Class                     Shares Outstanding at October 18, 1996
--------------------------------------    --------------------------------------

Common Stock, par value $.02 per share                 24,993,952
                                                       ----------

                     This document contains 12 pages.

                                      1

<PAGE>



                             THE BISYS GROUP, INC.
                              INDEX TO FORM 10-Q




PART I.  FINANCIAL INFORMATION                                              Page



   Item 1. Financial Statements

     Condensed Consolidated Balance Sheet as of September 30,
          1996 and June 30, 1996 ..........................................  3

     Condensed Consolidated Statement of Operations for the
          three months ended September 30, 1996
          and 1995 ........................................................  4

     Condensed Consolidated Statement of Cash Flows for the three months
          ended September 30, 1996 and 1995 ...............................  5

          Notes to Condensed Consolidated Financial Statements6


   Item 2. Management's Discussion and Analysis of Results
          of Operations and Financial Condition ...........................  7



PART II.  OTHER INFORMATION ...............................................  9

   Item 1.  Legal Proceedings

   Item 6.  Exhibits and Reports on Form 8-K

SIGNATURES ................................................................  10

EXHIBIT INDEX .............................................................  11



                                        2

<PAGE>





                                    PART I

ITEM 1.  FINANCIAL STATEMENTS

                     THE BISYS GROUP, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEET
                             (Dollars in Thousands)
                                   (Unaudited)

                                                        September 30,  June 30,
                                                            1996        1996
                                                         ---------    ---------

ASSETS
Current assets:
  Cash and cash equivalents ......................       $  42,678    $  39,284
  Short-term investments ...........................         3,000         --
  Accounts receivable, net .........................        53,119       47,846
  Deferred tax asset ................................       11,728       12,159
  Prepaid expenses and other ........................        6,015        5,126
                                                         ---------    ---------
Total current assets ................................      116,540      104,415
Property and equipment, net .........................       26,839       25,264
Intangible assets, net ..............................       79,910       80,850
Other assets ........................................        3,657        4,096
                                                         ---------    ---------
    Total assets ....................................    $ 226,946    $ 214,625
                                                         =========    =========



LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Current maturities of long-term debt ..............    $     251    $     306
  Accounts payable ..................................        7,538        7,277
  Accrued liabilities ...............................       60,110       56,384
                                                         ---------    ---------
Total current liabilities ...........................       67,899       63,967
Long-term debt ......................................        1,642        1,668
Deferred tax liability ..............................        4,391        5,425
Other liabilities ...................................          361          393
                                                         ---------    ---------
    Total liabilities ...............................       74,293       71,453
                                                         ---------    ---------



Stockholders' equity:
  Common stock, $.02 par value, 80,000,000
     shares authorized, 24,990,976 and 24,782,101
     shares issued and outstanding,
     respectively ..................................           500          496
  Additional paid-in capital ........................      147,599      145,788
  Retained earnings (accumulated deficit) ...........        4,554       (3,112)
                                                         ---------    ---------
    Total stockholders' equity ......................      152,653      143,172
                                                         ---------    ---------
    Total liabilities and stockholders' equity ......    $ 226,946    $ 214,625
                                                         =========    =========




               The accompanying notes are an integral part of the
                   condensed consolidatedfinancial statements.


                                      3

<PAGE>







                     THE BISYS GROUP, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                      (In Thousands, Except Per Share Data)
                                   (Unaudited)

                                                            Three Months Ended
                                                              September 30,
                                                            ------------------
                                                          1996           1995
                                                        --------        --------


Revenues ........................................       $ 72,395        $ 52,272
                                                        --------        --------
Operating costs and expenses:
  Service and operating .........................         40,015          27,504
  General and administrative ....................         13,722          10,198
  Selling and conversion ........................          2,840           2,233
  Research and development ......................          2,608           2,539
  Amortization of intangible assets .............            936             942
                                                        --------        --------
Operating earnings ..............................         12,274           8,856
Interest (income) expense, net ..................           (504)            114
                                                        --------        --------
Earnings before income
 tax provision ..................................         12,778           8,742
Income tax provision ............................          5,112           3,321
                                                        --------        --------
Net earnings ....................................       $  7,666        $  5,421
                                                        ========        ========

Net earnings per common share ...................       $   0.29        $   0.22
                                                        ========        ========

Weighted average common and common
 equivalent shares outstanding ..................         26,341          24,366
                                                        ========        ========





               The accompanying notes are an integral part of the
                  condensed consolidated financial statements.


                                      4

<PAGE>



                     THE BISYS GROUP, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                             (Dollars in Thousands)
                                   (Unaudited)

                                                            Three Months Ended
                                                              September 30,
                                                           -------------------
                                                             1996        1995
                                                           --------    --------

Cash flows from operating activities:
Net earnings ...........................................   $  7,666    $  5,421
Adjustments to reconcile net earnings to
 net cash provided by operating activities:
  Depreciation and amortization ........................      2,847       2,198
  Deferred income tax provision (benefit) ..............       (603)      3,000
  Change in operating assets and liabilities ...........     (1,768)     (2,971)
                                                           --------    --------
Net cash provided by operating activities ..............      8,142       7,648
                                                           --------    --------

Cash flows from investing activities:
  Capital expenditures .................................     (3,510)     (3,892)
  Proceeds from maturities of short-term investments ...       --         2,258
  Purchase of short-term investments ...................     (3,000)       --
  Other ................................................         28       1,668
                                                           --------    --------
  Net cash provided by (used in) investing activities ..     (6,482)         34
                                                           --------    --------

Cash flows from financing activities:
  Proceeds from debt ...................................       --         1,600
  Repayment of debt ....................................        (81)     (8,405)
  Exercise of stock options ............................      1,815         663
                                                           --------    --------
  Net cash provided by (used in) financing activities ..      1,734      (6,142)
                                                           --------    --------

Net increase in cash and cash equivalents ..............      3,394       1,540

Cash and cash equivalents at beginning of period .......     39,284       7,296
                                                           --------    --------

Cash and cash equivalents at end of period .............   $ 42,678    $  8,836
                                                           ========    ========


               The accompanying notes are an integral part of the
                  condensed consolidated financial statements.


                                      5

<PAGE>




                     THE BISYS GROUP, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)



1.  The Company

    The BISYS(R) Group, Inc. and subsidiaries (the "Company") is a leading
    national provider of outsourcing solutions to and through financial
    organizations.

    The condensed consolidated financial statements include the accounts of The
    BISYS Group, Inc. and its subsidiaries and have been prepared consistent
    with the accounting policies reflected in the 1996 Annual Report on Form
    10-K filed with the Securities and Exchange Commission and should be read
    in conjunction therewith. The condensed consolidated financial statements
    include all adjustments (consisting only of normal recurring adjustments)
    which are, in the opinion of management, necessary to present fairly this
    information.


2.  Use of Estimates

    The preparation of financial statements in conformity with generally
    accepted accounting principles requires management to make certain
    estimates and assumptions that affect the reported amounts of assets and
    liabilities and disclosure of contingent assets and liabilities at the date
    of the financial statements and the reported amounts of revenue and
    expenses during the reporting period. The most significant estimates are
    related to the allowance for doubtful accounts, intangible assets, merger
    expenses and other charges, income taxes and contingencies. It is
    reasonably possible that actual results could differ from these estimates
    in the near term.

3.  Contingencies

    For a description of certain legal proceedings related to the Company,
    refer to Part II, Item 1 - "Legal Proceedings" and the 1996 Annual Report
    on Form 10-K.


                                       6

<PAGE>



ITEM 2.              MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  RESULTS OF OPERATIONS AND FINANCIAL CONDITION

The Company provides outsourcing solutions to and through financial
organizations and reports as a single segment. The operating margins for each
business unit of the Company are not significantly different. The following
table presents the percentage of revenues represented by each item in the
Company's condensed consolidated statement of operations for the periods
indicated:


                                                             Three Months Ended
                                                               September 30,
                                                            -------------------
                                                            1996           1995
                                                           -----          ----- 

Revenues ..........................................        100.0%         100.0%
                                                           -----          ----- 

Operating costs and expenses:
  Service and operating ...........................         55.3           52.6
  General and administrative ......................         18.9           19.5
  Selling and conversion ..........................          3.9            4.3
  Research and development ........................          3.6            4.9
  Amortization of intangible assets ...............          1.3            1.8
                                                           -----          ----- 
Operating earnings ................................         17.0           16.9
Interest (income) expense, net ....................         (0.7)           0.2
                                                           -----          ----- 
Earnings before income tax provision ..............         17.7           16.7
Income tax provision ..............................          7.1            6.3
                                                           -----          ----- 
Net earnings ......................................         10.6%          10.4%
                                                           =====          ===== 


Comparison of the Three Months Ended September 30, 1996 with the Three Months
Ended September 30, 1995.

     Revenues increased 38.5% from $52.3 million for the three months ended
     September 30, 1995 to $72.4 million for the three months ended September
     30, 1996. This growth was derived from sales to new clients, existing
     client growth, and cross sales to existing clients, partially offset by
     lost business.

     Service and operating expenses increased 45.5% from $27.5 million during
     the three months ended September 30, 1995 to $40.0 million for the three
     months ended September 30, 1996, and increased as a percentage of revenues
     from 52.6% to 55.3%. These increases resulted from additional costs
     associated with greater revenues.

     General and administrative expenses increased 34.6% from $10.2 million
     during the three months ended September 30, 1995, to $13.7 million for the
     three months ended September 30, 1996, but decreased as a percentage of
     revenues from 19.5% to 18.9%. The dollar increase resulted from additional
     costs associated with greater revenues. The decrease as a percentage of
     revenues resulted from further utilization of existing general and
     administrative support resources.

     Operating earnings of $12.3 million for the three months ended September
     30, 1996 increased from $8.9 million for the three months ended September
     30, 1995, and remained flat as a percentage of revenues at approximately
     17.0%.

     The income tax provision of $5.1 million for the three months ended
     September 30, 1996 increased from $3.3 million for the three months ended
     September 30, 1995. The provision represents an effective tax rate of 40.0%
     for the three months ended September 30, 1996, compared to 38.0% for the
     three months ended September 30, 1995. The lower rate in the prior year was
     primarily due to the impact of an adjustment to the valuation allowance
     during the three months ended September 30, 1995.

                                         7

<PAGE>


Liquidity and Capital Resources

     At September 30, 1996, the Company had cash and cash equivalents of $42.7
     million and working capital of $48.6 million. The Company has been able to
     satisfy its cash requirements through its cash flows from operations. The
     Company is in discussion with its lenders to obtain a $100.0 million
     revolving credit facility, and terminated its existing $10.0 million
     revolving credit facility in October 1996. At September 30, 1996, the
     Company had $0.2 million outstanding in the form of letters of credit. The
     interest rate on other outstanding long-term borrowings of $1.9 million at
     September 30, 1996 was 7.75%.

     For the three months ended September 30, 1996, operating activities
     provided cash of $8.1 million, primarily through net earnings of $7.7
     million. Investing activities used cash of $6.5 million, primarily for
     capital expenditures of $3.5 million and $3.0 million for purchases of
     short-term investments. Financing activities provided cash of $1.7 million,
     $1.8 million from the exercise of stock options, offset by $0.1 million for
     the repayment of debt.

Merger Expenses and Other Charges

     At September 30, 1996, approximately $7.9 million of costs to integrate new
     operations arising from prior acquisitions and costs relating to the
     combining of certain data center operations are included in accrued
     liabilities on the accompanying balance sheet. Approximately $1.8 million
     of such expenses were paid during the three months ended September 30,
     1996.

     Accrued liabilities also include $14.0 million of estimated commissions and
     other expenses incurred in connection with the outsourcing alliance
     agreement entered into in June 1996 between the Company and the mutual fund
     division of Furman Selz LLC. During October 1996, $8.8 million of such
     expense were paid by the Company to Furman Selz pursuant to the agreement.

     It is anticipated that the actions to combine and integrate the
     aforementioned operations will be substantially completed by June 30, 1997.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

     Except for the historical information contained herein, the matters
     discussed in this quarterly report are forward-looking statements which
     involve risks and uncertainties, including but not limited to economic,
     competitive, governmental and technological factors affecting the Company's
     operations, markets, services and related products, prices, and other
     factors discussed in the Company's prior filings with the Securities and
     Exchange Commission.


                                         8

<PAGE>



                                       PART II

ITEM 1.     LEGAL PROCEEDINGS

            On August 23, 1994 and September 9, 1994, two purchasers of
            Concord's stock, Seymour Lazar and Joshua Teitelbaum, on behalf of
            themselves and all others similarly situated, filed class action
            complaints in the United States District Court for the Northern
            District of California against Concord, its Board of Directors and
            certain officers, Hambrecht & Quist Group, Bank of America NT&SA and
            Montgomery Securities alleging violations of the federal securities
            laws. The complaints allege that these individuals and entities
            misrepresented Concord's business and future prospects during
            Concord's initial public offering and in subsequent statements in
            order to successfully consummate the offering and to sustain an
            artificially inflated price for Concord's common stock. Accordingly,
            the plaintiffs seek to recover losses allegedly sustained by a class
            who purchased Concord's common stock between February 24, 1994, and
            June 17, 1994. The complaints do not specify the amount of damages
            sought. The two cases have been consolidated. The parties have
            entered into a definitive agreement subject to final court approval.
            Regardless of any settlement, management believes that the Company
            has adequate defenses and/or insurance coverage against litigation
            and that the outcome of these proceedings, individually or in the
            aggregate, will not have a material adverse effect upon the
            Company's financial position, results of operations, or cash flows.
            The Company only considers insurance deemed probable when evaluating
            loss contingencies.

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

      (a)   Exhibits

            Exhibit 11 - Statement regarding computation of earnings per common
            share.

      (b)   Reports on Form 8-K

            None


                                         9

<PAGE>



                                     SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                                    THE BISYS GROUP, INC.


Date: November 13, 1996             By: /s/ Robert J. McMullan
      ----------------------------      ---------------------------- 
                                            Robert J. McMullan
                                            Executive Vice President and 
                                            Chief Financial Officer
                                            (Duly Authorized Officer)







                                         10

<PAGE>



                               THE BISYS GROUP, INC.
                                   EXHIBIT INDEX




Exhibit No.                                                     Page

      (11)  Computation of Earnings Per Common Share . . . . .  12

      (27)  Financial Data Schedule . . . . . . . . . . . . .  (electronic only)


















                                         11