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Technology Stocks : SFNB, Security First Net. Bank -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (376)	3/16/1998 12:53:00 PM
From: john g	Respond to of 507

Gosh Dale and Joel need to exchange e-mail addresses so the rest of us can take a pass on the Motley Fool approach to stock bashing. You two must have had a lot of time on your hands Sunday morning

To: Dale Baker who wrote (376)	3/16/1998 10:58:00 PM
From: Brian K Crawford	Read Replies (1) \| Respond to of 507

<<Did you find any specific information on banking systems being offered directly by HP, IBM or other large vendors?>> Dale, as far as I know, HP is not active in any banking applications software. They do sell minicomputer systems that run HP unix, and these are used by many small to midsized FI's to run their banking applications software. HP does have a security product called Virtual Vault that S1 has licensed and incorporated into their VFM product. But HP does not have a middleware product for web banking like S1 has. HP is involved in e-commere thru their acquisition of Verifone. This gives them a big position in credit card authorization hardware/software systems. I do not conclude that they intend to move into web banking software, but I can't rule it out, either. IBM sells the big iron systems to the top tier banks. I have no knowledge about IBM offerings in financial institution applications software....maybe someone else here can help. IBM does operate the IBM network, which is used for business-to-business, secure e-commerce (EDI). IBM is also a partner in Integrion, along with NationsBank and a number of other big banks. IBM and Integrion are promoting the use of the IBM private network (as opposed to the web) to all the banks that want to implement web banking under the Integrion Standard. The partners in Integrion bought MECA Software to get its Managing Your Money product, and they will offer this as a private label front end to banks that sign on for Integrion Standard home banking. Managing Your Money was a full featured personal financial management product (some say too full featured) that lost the race against Quicken, and to a lesser degree, against Microsoft's Money. Integrion is a standard setting consortium, not an operating entity. We shouldn't expect too much new ground to be broken by the Integrion group. If I can read into your question a bit, you seem to be asking who the Goliath is that will fell David. I don't see one at this stage. The players offering web banking solutions currently are little guys. I feel it is more likely that the Goliath's will watch for a dominant provider of middleware to become established, and then they will buy them. Paying a little higher price later for a much lower risk. Potential acquirers would have to include IBM/Integrion, FISERV, and M&I. Maybe HP. I would have said Checkfree could be a buyer, but they chose to get out of this part of the business. My number one bet would go on FISERV, because they have the largest number of existing small financial institution clients to sell middleware to. I would rule out Microsoft, because the bankers don't trust them to play in their own space. I definitely could be wrong. I don't like to buy stocks based on takeover speculation. I prefer plain ole growing businesses. I don't think SFNB is quite there yet, but it could be. Selling the bank is a big move in the right direction. Showing they can accelerate the rate at which they bring on the banks they have already signed will be another indicator. Good luck. Brian

To: Dale Baker who wrote (376)	3/16/1998 11:09:00 PM
From: Brian K Crawford	Respond to of 507

SURVEY: Banks Moving To The Net news.com <<Mentis predicts that 70 percent of banks will offer a proprietary product by the end of 1998; roughly one-third will offer Microsoft Money and/or Intuit's Quicken; and about one of every ten banks will use MECA's Managing Your Money. "Banks like proprietary products because they are able to build brand awareness through increased exposure," >> When you read "proprietary product" think VFM or Edify solution with the Bank brand on it. Not a totally in-house developed solution. Brian