Some links for those interested in the competitive landscape:
Third party processors that market the S1 system:
1. FISERV - FISERV has over 3000 banking clients for its various software and service solutions. It is marketing the S1 solution under the name "connect3", and has only been offering the service actively for 3 or 4 months. See a demo at:
fiserv.com
2. Summit Information Services. A FISERV subsidiary offering data processing services exclusively to credit unions. Also calls the solution "Connect3", and is in limited roll out to its client base only in the last few months. (Sign a waiting list to get implemented). See the demo at:
summitsite.com
3. M and I Data, offering data processing services to 800 banks. See a demo and a linked list of their online bank clients at:
midirectnet.com
Competitive offerings to the S1 product:
1. Edify. Edify offers "Electronic Workforce", a customizable software development package that is used to enable customized web and telephone access and customer self service applications. They developed a sub-set application targeted at the home banking market and began offering it in late 1997. Originally developed only for OS2, they are developing an NT version. Their solution is industrial quality, but must be considered an in-house solution (get your own servers, programmers, tech support people, etc...), whereas S1 could be considered more of an off-the-shelf, turnkey offering. Also, web banking would appear to be a sideline business for Edify at this point, rather than their primary business. Edify is a public company with symbol EDFY. See their site at:
edify.com
2. Corillian. Corillian is run by the guy (Ted Spooner) that was in charge of middleware software at Checkfree, before Checkfree decided to get out of middleware (early 1997) and concentrate on e-bill and billpay. So I guess its a splitoff? Their solution is designed for NT server only. They show a couple of name clients at their site, including Amsouth and Crestar. (Coincidentally, S1 lists Amsouth as a client, too. I would guess Amsouth is moving from S1 to Corillian, to do their web banking in-house). Corillian is a private company. Web Banking software seems to be their ONLY business. See the site at:
corillian.com
also a (limited) demo at:
demos.corillian.com
3. CFI Proservices. CFI sells add-on PC applications to banks, including loan document processing/printing software, and new accounts sales desk automation software. They bought a PC banking (dial up) solution 2 years ago and market it as "Encore! Personal Branch". They say they have developed a web version but it is not yet shown as a demo at their site. The company is public and trades under symbol PROI. They specialize in software for financial institutions, but web banking must be considered a sideline for them at this point, as most of their revenues come from their loan processing application. Also, the site says their Encore! Personal Branch runs ONLY on the HP 3000 server. I believe this server runs a proprietary HP version of Unix, so their potential market would seem limited if they aren't ready for NT server....See their site at:
cfipro.com
A couple of points of interest:
1. S1 solution has the Virtual Financial Manager (VFM) as the controlling application, allowing for account access and billpay. Components for credit cards (available now) and investments (coming soon) can be added. The competition seems to still be at the access and billpay only stage.
2. NONE of the competitors are offering a data center option. It's "buy the license, get your own server, and you are on your own"
3. NONE of the competitors offer the call center customer support option that S1 has.
S1 management has now dumped off the bank and is a pure ecommerce enabler. (And losing a ton of money in the ramp up stage, just like most of the others, I might add).
Microsoft and Intuit are not S1 competitors at this point. They are more in the role of educators and enablers thru their front end offerings (Money and Quicken).
I am told that Microsoft is basically prepared to give its Marble tools set to any financial institution that will sign on to NT server. But this is only of interest to the do-it-yourself web-site banker.
Meanwhile there are around 10,000 banks in the US and maybe another 10,000 credit unions. Not everone wants a do-it-yourself web banking effort at this stage (the bleeding edge stage) of web technology development. But they all look at the web as a place they need to be, if for no other reason than as a defensive move.
Just as an indication of where FISERV is headed: They bought a web brokerage in 1997. If you sign on to their Connect3 offering, web brokerage will be the next thing you can roll out.
That's all for now.
Brian
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