Ranking the US Vendors of Internet Brokerage Solutions

June 14, 2000

Abstract

Cambridge, MA, USA, June 19, 2000

Report published by  Celent Communications  

In an indispensable guide for financial institutions selecting an Internet brokerage vendor, Celent Communications profiles eight vendors of Internet brokerage solutions, and compares them on a variety of criteria, including usability, functionality supported, systems integration, speed of deployment and scalability. This 45-page report, titled " " is intended to aid financial institutions in the selection of a vendor solution for Internet brokerage, whether the institution is choosing a vendor for its first implementation or considering upgrading its current technology to a second or third generation deployment.

A Table of Contents for this report can be viewed online.

Using vendor-provided solutions to develop transactional capability has become standard practice in the brokerage industry. The window of opportunity for vendors of brokerage technology is still wide open -- only 28 percent of the top 100 global securities firms currently offer online transactional capability, and only 24 percent of full-service firms have moved transactions online. Over the next three years, we expect that spending by financial institutions on brokerage technology will reach more than US$1.4 billion by 2003. As the online brokerage market expands and becomes more mainstream and the underlying technology improves, vendor offerings are becoming increasingly sophisticated.

Members of Celent Communication’s Retail Securities & Investments research service can be download this report electronically by clicking on the icon to the right. 

"We expect to see a number of trends in the next year, including more small brokerage firms going online, the addition of advice-oriented functionality and broker tools to vendor offerings, and an increasingly wide array of channels available to retail investors,” explains Sang Lee, an analyst in Celent Communications e-Trading group. “The year 2000 will prove to be a year in which penetration of online brokerage continues to grow, but the vendor market consolidates. As concerns about reliability grow and demands for guaranteed uptime increase, vendors that are unable to provide high levels of guaranteed uptime, along with dual data centers for full redundancy and failover capacity, will be unable to compete. This may mean that larger, established vendors will have an edge.”

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 operating unit 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

 

Cambridge, MA, USA, June 19, 2000

Ranking the Vendors of Internet Brokerage Solutions

Return to Abstract of this report.

EXECUTIVE SUMMARY 3
INTRODUCTION 5
  Industry Overview  6
  Market Growth  6
  Brokerage Technology Trends 10
  Solution Elements 14
VENDOR PROFILES 17
  Automated Financial Systems 17
  digiTRADE  20
  Kingland Systems 22
  Reality Online 24
  S1 26
  Sungard-EMS 27
  Taho Commerce Group 29
  The Vantra Group 31
COMPARATIVE ANALYSIS 34
  Ranking Criteria 36
FUTURE TRENDS 44

 

        

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