San Francisco, CA, USA
March 5, 2007 Retail Internet Banking Vendors: Luring
the Laggards
Report Published by Celent
Online banking has reached
the milestone of 40% of households, but attracting additional users will
be a challenge.
Banks are under intense pressure to attract
and retain online banking customers. Over the past five years online
banking household adoption had consistent year over year double-digit
growth, averaging 15%, but Celent predicts that in the next few years,
average household penetration growth rates will drop to the single digits.
Less growth in online banking will make it more challenging for banks to
attract the remaining half of banked households that still do not banks
online. In the report, Retail Internet Banking Vendors: Luring the
Laggards, Celent explores the new technology that will help banks meet
the challenge.
Banks have challenged vendors to offer
applications that can help expand penetration and generate higher
retention — sophisticated interface technologies,
new security features, advanced customization options, fully integrated
payment and personal financial management capabilities — anything and everything that will help
“lure the laggards.” Vendors have responded to these challenges, in
some cases consolidating, in other cases offering some of the most
integrated combinations of bill payment, online banking and core system
integration the industry has seen to date.
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. Metavante, a
low performer in Celent’s 2005 report, has significantly revamped its
retail platform and has performed exceedingly well registering third
overall. Online Resources, Fiserv, and S1 Personal Banking also received
relatively strong grades.
Dan
Schatt, coauthor of the report and senior analyst at Celent, says, “We
are well past the early adopter phases of Internet banking, and the
drivers behind the next wave of adoption will be deep integration,
usability, and security. Many online banking vendors and banks have
recognized this trend and are well on their way to offerings that will
generate significant interest for the next wave of adopters.”
“One surprise from this
research has been the ascent of core system processors in our rankings,
blowing the stereotype that the best solutions are from monoline vendors.
This time, two of the three top ranking vendors are core processors,
Metavante and Fiserv ITI,” says Bob
Meara, coauthor of the report and senior analyst at Celent.
A table of contents is available
online.
|
