Financial Technology Startups 2010: Giving Banks a Run for Their Money

by Jacob Jegher, June 9, 2010
Product Trends/ Reviews
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

Innovative nonbank startups are targeting the consumer market and competing with banks.

The Internet is in perpetual transition. The ever-evolving nature of this channel has banks careening in all directions to keep up with new technology, shifting business models, and customer demands and requirements. The market is too competitive to allow banks to rest on their innovation laurels, and customer demands are forcing banks to shift gears and refocus their priorities. Much of the competition and innovation are coming from nonbanks that are active in the financial services sector. These companies have discovered opportunities in areas where banks have been slow to react or where they believe consumer interest is strong.

On May 11, 2010, Celent attended FinovateSpring, a conference that brought together 36 financial technology solution vendors. The firms were given seven minutes to showcase their wares via a live demo. This report, Financial Technology Startups 2010: Giving Banks a Run for Their Money, examines and analyzes 10 financial technology startups that Celent finds most promising. A short profile is provided for each company or product as well as Celent’s impressions.

“Banks need to work on solidifying customer relationships. It is important for banks to understand where the industry is headed, formulate an innovation strategy, and partner with firms who can help strengthen customer relationships and assist in providing a competitive advantage,” says Jacob Jegher, Senior Analyst with Celent’s Banking group and author of the report.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

The Standout Startups

7

Lending / Credit

8

 

SmartCredit.com

8

Miscellaneous Financial Solutions

10

 

Expensify

10

 

Goalmine

11

Online Banking / Bill Payment

13

 

Backbase

13

 

Billeo

14

 

Bobber Interactive

15

 

oFlows

16

Payments / Transactional

18

 

Point of Wealth Systems

18

Security / Risk Management

20

 

Continuity Control

20

 

Silver Tail Systems

21

Conclusion

24

Leveraging Celent’s Expertise

25

 

Support for Financial Institutions

25

 

Support for Vendors

25

Related Celent Research

26

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