Retail Internet Banking Vendors: Hitting Their Stride

April 28, 2005


San Francisco, CA, USA April 28, 2005

Celent Communications examines the pace of progress in online banking and finds that it is on a steady course to becoming mainstream. By next year, spending on external IT will break the US$500 million mark.

Providers of Internet banking solutions continue to lead a strenuous existence: life partly in the fast lane of technological advancements and partly in the slow lane of client acquisition. Although competition on the features and functional front continues, it is tapering as solutions hit a relatively mature stage. In contrast, interoperability, customization, and integration capabilities vary more remarkably across vendors. Consequently, the scope of Celent’s analysis extended to level of technological advancement and depth of client services.

Alenka Grealish

, coauthor of the report and manager of the banking group at Celent, says, "Over the past decade, Internet banking vendors have significantly increased their ROI arsenals. Despite the tepid market, vendors have not slowed their pursuit of enhancements that strengthen the ROI equation. Their current challenge is demonstrating to bankers how these enhancements translate into line items on income statements."

Dan Schatt

, the report’s coauthor and a senior analyst at Celent, observes, "Historically, banks have been content to allow Quicken or Microsoft Money to take care of their customers’ personal financial management (PFM) needs and have spent considerable sums to facilitate OFX downloads for this purpose. We are now seeing quite a bit of expense management, funds transfer, and aggregation technology offered within bill payment and online banking offerings, enriching a user’s online banking experience. This year, banks have an opportunity to take advantage of this functionality through core and application vendor offerings like never before."

This report examines the offerings of nine vendors and introduces Celent’s ABCD framework for analyzing vendors. The framework has four categories: advanced technology, breadth of end-user features, customer base, and depth of client services. The vendors are Corillian, Digital Insight, Fidelity Information Services, Financial Fusion, Fiserv, Metavante, Online Resources, Open Solutions, and S1. Across all four categories, Corillian stands out as the clear leader, followed by Digital Insight and Financial Fusion. S1 is projected to close the feature gap this year. These four vendors have a proven track record on technology and features and have been consistently cited by their clients as delivering what they need and want.

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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].

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Table of Contents


  San Francisco, CA, USA April 28, 2005

Retail Internet Banking Vendors

Return to report Abstract


Executive Summary 3
Mainstreaming Adoption 5
  Propulsion From Broadband Access 7
  Improving Bank Savviness 8
Vendors' Burgeoning Capabilities 11
  Usability 12
  Interoperability 13
  Security 15
Maturing Features Menu 17
  Account Acquisition: Dream Come True 17
  Funds Transfer and EBPP: Tied at the Hip 18
  Alerts: Customer Contact 19
  Customer Support 19
Celent's ABCD Vendor Analysis 23
  The Results 23
  Advanced Technology 24
  Breadth of End-User Features 25
  Customer Base 27
  Depth of Client Services 29
Vendor Spotlights 31
  Mid-Sized to Large Bank Providers 31
  Corillian 31
  Financial Fusion 35
  Fidelity Information Services 37
  S1 40
  ASP-Focused Purveyors 41
  Digital Insight 42
  Online Resources Corp. 45
  Core Processors 47
  Fiserv 48
  Metavante 49
  Open Solutions 51
Future Trends 53

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