San Francisco, CA, USA
April 28, 2005
Retail Internet Banking Vendors: Hitting Their
Stride
Report Published by Celent
Celent Communications examines the pace of progress
in online banking and finds that it is on a steady course to becoming
mainstream. By next year, spending on external IT will break the US$500
million mark.
Providers of Internet banking solutions continue to
lead a strenuous existence: life partly in the fast lane of technological
advancements and partly in the slow lane of client acquisition. Although
competition on the features and functional front continues, it is tapering
as solutions hit a relatively mature stage. In contrast, interoperability,
customization, and integration capabilities vary more remarkably across
vendors. Consequently, the scope of Celent’s analysis extended to level
of technological advancement and depth of client services.
Alenka
Grealish , coauthor
of the report and manager of the banking group at Celent, says, "Over
the past decade, Internet banking vendors have significantly increased
their ROI arsenals. Despite the tepid market, vendors have not slowed
their pursuit of enhancements that strengthen the ROI equation. Their
current challenge is demonstrating to bankers how these enhancements
translate into line items on income statements."
Dan Schatt ,
the report’s coauthor and a senior analyst at Celent, observes,
"Historically, banks have been content to allow Quicken or Microsoft
Money to take care of their customers’ personal financial management (PFM)
needs and have spent considerable sums to facilitate OFX downloads for
this purpose. We are now seeing quite a bit of expense management, funds
transfer, and aggregation technology offered within bill payment and
online banking offerings, enriching a user’s online banking experience.
This year, banks have an opportunity to take advantage of this
functionality through core and application vendor offerings like never
before."
This report examines the offerings of nine vendors
and introduces Celent’s ABCD framework for analyzing vendors. The
framework has four categories: advanced technology, breadth
of end-user features, customer base, and depth of client
services. The vendors are Corillian, Digital Insight, Fidelity Information
Services, Financial Fusion, Fiserv, Metavante, Online Resources, Open
Solutions, and S1. Across all four categories, Corillian stands out as the
clear leader, followed by Digital Insight and Financial Fusion. S1 is
projected to close the feature gap this year. These four vendors have a
proven track record on technology and features and have been consistently
cited by their clients as delivering what they need and want.
A table
of contents is available online.
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