Ranking the Vendors of Small Business Banking: Segmenting the Client Base

Create a vendor selection project
Click to express your interest in this report
Indication of coverage against your requirements
A subscription is required to activate this feature. Contact us for more info.
Celent have reviewed this profile and believe it to be accurate.
We are waiting for the vendor to publish their solution profile. Contact us or request the RFX.
Projects allow you to export Registered Vendor details and survey responses for analysis outside of Marsh CND. Please refer to the Marsh CND User Guide for detailed instructions.
Download Registered Vendor Survey responses as PDF
Contact vendor directly with specific questions (ie. pricing, capacity, etc)
17 April 2003


Boston, MA, USA April 17, 2003

Banks See Revenue Opportunity in Small Businesses

Celent forecasts that 21% of small businesses will be banking online by 2005. This dramatic growth will be the direct result of better technology, increased comfort with the Internet, and a greater interest in this segment by financial institutions.

Most banks have always considered the small business segment difficult and costly to reach. They were often placed in the "no-man痴 land" between retail and corporate arenas, where neither banking solution could sufficiently meet their individual needs. As a result, small businesses rarely banked online. Today, however, banks are beginning to recognize the revenue potential of this once ignored customer segment. As banks increasingly look to deploy solutions that target small businesses, fierce competition has arisen as both retail and corporate banking solution providers battle for market share of this untapped sector.

In a new report, , Celent Communications analyzes the solutions of 11 vendors and ranks them. The ranking is based on seven criteria: number of successful deployments, depth of features and functions, financial viability of the vendor, customization/flexibility, client support/customer service, technology platform and ease of use. Table 1 summarizes the results of the study.

"As banks continue to be faced with pressure to find new sources of revenue, small businesses provide a great deal of potential. Not only are they large in number (more than 25 million in the US), but they are also more loyal than large corporations and offer several cross selling opportunities to banks as they grow " said Christine Barry, wholesale banking analyst at Celent and author of the report.

Vendors included in this study are: BANKLINK, Corillian, Digital Insight, Financial Fusion, FundsXpress, Fundtech, Magnet, Metavante, Open Solutions, Politzer & HANEY, and S1. A is available online.

Top Providers of Small Business Banking Solutions


Solution Provider

1 Digital Insight
2 S1
3 Magnet
Source: Celent Communications

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