Internet Banking Vendors: Escaping the Doldrums

October 29, 2003

Abstract

San Francisco, CA, USA October 29, 2003

Celent Communications examines the winds that will blow away Internet banking vendors’ doldrums: features and functionalities that clearly contribute to ROI. The doldrums should dissipate by 2005 when Celent predicts IT spending will break the US$1 billion mark.

Internet banking has entered into a mature phase, for better and worse. On the plus side, technological improvements have made applications increasingly reliable, scalable, flexible, and customizable, causing bank and consumer satisfaction to steadily increase. However, the flow of RFPs has notably slowed and the competitive field continues to be crowded. In addition, for much of the banking market, a single point-solution is no longer interesting on its own. Consequently, for solution providers to survive, they must adapt to banks’ demands for solutions that extend beyond retail Internet banking.

According to

Alenka Grealish, author of the report and manager of the banking group at Celent, "The Internet banking vendors that will escape the doldrums are those whose solutions fulfill banks’ ROI demands, which are extending beyond simple cost-to-serve equations and direct revenue models. Banks’ demands currently include lowering cost-to-serve through self-service features with broad appeal (e.g., check image access and e-statements) and improving customers’ online banking experience through effective support features (e.g., online chat). Behind the customer-facing scene lie additional opportunities to lower costs. For large banks, a payment warehouse offers a means to defray the cost of offering online bill payment. For all banks, consolidation of applications across businesses and channels onto a single platform holds promise."

The report profiles and grades eleven vendors along three dimensions: financial viability, self-service features, and customer support features. Table 1 displays the vendors earning an "A" grade.

A is available online.

of Celent Communications' Retail Banking research service can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

        

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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

San Francisco, CA, USA October 29, 2003

Internet Banking Vendors

Return to report Abstract

 

EXECUTIVE SUMMARY 3
THE CHANGING FACE OF INTERNET BANKING  5
  From Point-Solution to Single Platform 5
  New Client Battlefield 7
  Partly Cloudy Performance Forecast 8
  Bright Spot: Rising Adoption 9
STRENGTHENING THE ROI 13
  Advancements in Features 14
  Payment Warehouse 17
  A Single Platform 18
VENDOR REPORT CARDS 23
  G.P.A. 24
  Financial Viability 26
  Self-Service Features 28
  Customer Contact/Support Features 29
VENDOR SPOTLIGHTS 30
  MID-SIZED + BANK PROVIDERS 30
  Corillian 31
  Financial Fusion 33
  Fidelity Information Services 34
  S1 36
  ASP-FOCUSED PROVIDERS 38
  Digital Insight 38
  Fundsxpress 40
  Online Resources Corp. 41
  CORE PROCESSORS 44
  Fiserv 44
  Metavante 46
  Open Solutions Inc. 47
  Sanchez Computer Assoc. 48
FUTURE TRENDS 52

 

        

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