Global ESP Marketplace Grows Faster than EBPP; Year 2000
B: Global ESP Marketplace Grows Faster than EBPP; Year 2000 the Critical Window
of Opportunity for IT and Service Providers
PALO ALTO, Calif., Feb 10, 2000 (BUSINESS WIRE) --
Summary
e-Statement Presentment Market Study Released
Topic: Electronic Statement Presentment
Website: killen.com
The market for electronic delivery of statements will grow from less
than $500 million in processing revenues in 1998 to over $18 billion by
2005.
According to a new study from the research firm of Killen & Associates,
the penetration of electronic statements in both the
business-to-business (B-to-B) and business-to-consumer (B-to-C) sectors
will reach 80% in this timeframe, a larger penetration rate than the
70% predicted for e-bill presentment.
"Clear winners and losers haven't yet been identified in the ESP
(electronic statement presentment) market, but this year is critical to
service bureaus and all IT suppliers," stated Michael Killen, founder
and chairman of the market research firm. "Our research sampling in the
top vertical segments reveals widespread interest from companies that
are currently testing and implementing successful ESP applications;
many will be launched by the end of 2000. Large third-party statement
processors are selling ESP applications as value-added services to
their customer base."
"There is a narrow window of opportunity to win important accounts this
year when both the B-to-C and B-to-B segments are poised for growth.
Financial services enterprises, including brokerage firms, mutual
funds, banks, and insurance companies, that have not yet made their
supplier choices, must decide to pursue ESP or suffer competitive
disadvantage," Killen added.
"The e-Statement Presentment Market: Brokerages, Financial Services
Drive ESP" examines ESP adoption rates for the three kinds of
statements -- regular statements, which are periodic reports and
monthly status reports; activity reports or mid-period notices issued
as a result of interim account activity; and issuer copies, which are
copies of the above two statement types used by issuers to answer
inquiries, provide customer service, and perform account analysis.
The study also examines candidate companies for ESP partnering and
acquisition, ESP market drivers, why ESP will develop faster than EBPP,
the important differences between the EBPP and ESP marketplaces, key
barriers to successful ESP deployment, and why service bureaus and
software vendors that are proficient in ESP will find it easier to move
into EBPP than vice versa.
Case studies include Advest Group and Canada Post's ePost. White Papers
are included from Alysis Technologies, Interface Systems, and
MessagingDirect.
A key measure of success for service bureaus selling into this market
will be customer adoption rates by the clients of financial services
companies. "Service providers that want to increase the ESP adoption
rate of their client bases must convince them that ESP is more
convenient," stated Don Pare, CEO of MessagingDirect. "ESP's potential
is to easily and quickly provide 'drill-down' into details of a
client's online statement. ESP also facilitates follow-on actions such
as querying statements or indicating intention to attend a meeting. An
online approach allows for simple integration of these functions,
convenient to the user."
"Although the financial services community is leading the charge toward
ESP, many brokerage firms are still sending copies of client statements
to remote offices via paper or microfiche," stated Robert Nero,
president and CEO of Interface Systems. "Finding the appropriate
customer information by searching through reams of paperwork or rolls
of microfiche slows response time to customer requests. Brokers need
seamless access to exact copies of account statements and archived
records. ESP is the solution."
"ESP market development is biased towards the U.S., at least for the
early adopters," Killen continued. "Our global regional analyses have
shown that, as with electronic bills, electronic statements will
develop most quickly domestically, then in Europe, with the
Asia/Pacific region following by two to three years. By 2005, however,
most regions of the world will have almost fully converted their
paper-based processes to ESP. Once one top-ten company in the key
vertical markets aggressively moves to full-scale ESP, it creates a
competitive advantage for that company."
"The move from paper to electronic communication processes is seen by a
majority of statement issuers as part of a greater opportunity for cost
reduction, but this is only part of the story," Killen continued. "ESP
enables whole new IT-based levels of customer care, communication, and
service via improved customer relationship management, further sales
opportunities, decreased transaction time, and better process
integration and handling of the total statement, which becomes more
tightly integrated into the overall business process. These are all
reasons to move to ESP," concluded Killen.
About Killen & Associates
Killen & Associates is a leading market research company that focuses
on the impact of the Internet, specializing in electronic bill
presentment and payment (EBPP), electronic statement presentment (ESP),
and multi-channel e-business (MCEB). The company's EBPP Business
Intelligence Subscription Service offers exclusive business
intelligence to business professionals in the telecomm, utilities, and
financial services industries worldwide. Decision-makers worldwide read
the company's "EBPP Weekly Alert", a free e-newsletter to stay abreast
of developments in the EBPP/ESP marketplace. Subscribers to the
company's EBPP/ESP Supplier Profiles have called this service the best
of its kind. Founder Michael Killen is an internationally renowned
authority on e-business strategy. Killen & Associates maintains offices
in Palo Alto, California; Richmond, Surrey, UK; and Zurich,
Switzerland.
For a free subscription to the "EBPP Weekly Alert" and additional
information on the company's products and services, visit Killen &
Associates' website, killen.com or contact Jules Street,
(jules@killen.com), or at 650-617-6130; fax: 650-617-6140.
Copyright (C) 2000 Business Wire. All rights reserved.
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CONTACT: Killen & Associates
Jules Street, 650/617-6130
WEB PAGE: businesswire.com
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