Remember 2001? AOL and Time Warner merged; W took one oath and inspired some others; and the USS Greeneville saved the world from a Japanese fishing boat. Way back when commissions from bank customers shopping via their Internet banking sites would solve bankers’ noninterest income worries!
Then in April 2004, I updated our loyal followers on how the core-provided Internet banking products were stomping terra over the Internet banking specialist vendors due to solid functionality, tight core integration and – maybe most importantly – low prices.
Fast forward to 2011, and my, how the mighty have fallen. The core-provided IB solutions for the most part have really blown the advantage they once had over their specialty vendor competition. The core vendors were in the position to price the snotnosed IB vendors out of the market, but instead they starved their products of life-sustaining R&D and leveled the playing field.
(For the record, my bet is on Corillian to eventually be the Anointed One, but not until it figures out how to productize the Corillian Beast and make it feasible to manage, operate and afford downstream. Though threatening to do this for years now, Fiserv hasn’t delivered.)
Some of this pushback against the core-provided IB systems is cosmetic – dated look/feel, clumsy navigation, offbeat screen organization, etc. You might think for a semi-commodity like Internet banking that cheap and tight integration would trump stunning design any day. But banks DO have their limits. Credit unions DO have standards. When things get so ugly that customers complain and kids jeer you and your bank’s clunky online behemoth, you have to think about change. Banks told the core players’ IB products that they would tolerate a little clumsiness and homeliness as long as their looks didn’t outright embarrass the banks. And now the bankers are embarrassed.The war isn’t won yet, but the specialty players for Internet banking are definitely making headway. They patiently waited as the core-based IB products collected dust. Now the most heated battles are among the fancy-boy Internet banking vendors.
While Fiserv tries to posture Corillian as Everyman’s IB system, its client base still screams Big Bank and High End. In our Internet banking system selection practice, we’re not seeing any kind of significant Corillian market momentum downstream. This product isn’t likely to spark mass appeal until Fiserv can productify Corillian and rein in the price.
A Special Note to DI’s Inside Account Reps: Will you please knock it off already with the full throttle FinanceWorks (PFM) cross sale push?! Holy crap, your clients are mocking you behind your back. I have one client whose eBanking team each takes a shot of Jager every time you utter the word “FinanceWorks” on a conference call. Sadly, they’re all awaiting liver transplants.
Q2’s To-Do list:
– Figure out how to make the PSCU reseller relationship for credit unions work.
– Build a list of successfully integrated core products as long as your arm.
– Most importantly, don’t let your breakneck sales pace break your customer service department’s neck.
Just a quick and dirty review of what I’m seeing in the trenches of the Internet banking vendor wars, GonzoBankers. More stunning takes like this to come on Twitter – check me out soon at @VendorDirt.
I’m so damn 2011! —Hodgins
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5 thoughts on “GonzoBanker’s Retail Internet Banking Speed Round”
this was a very informative and fun post to read.
What I would like to see next is the vendors you reviewed actually comment on what was said about them and share a little about what their future plans are.
The rate of change is much faster now then when these firms started building their internet products. I hope they all can keep up.
Cool take, Scott. Talk about a blast from the past. Many of our clients are expressing much of what you covered here. Thanks for the unique perspective, as always.
Excellent quick review; very much on the money for vendors mentioned. Curious why First Data – FundXpress was not mentioned?
Great article. Informative and does bring back some memories. For my money, I remain skeptical of the FIS offering. They have had some significant servicing and performance issues and, until they can prove that they have turned the corner (which appears some distance away), one would be wise to remain cautious.
The others are doing well but are also not without issues. I would probably focus on Corillian or Q2.
As a fomrer NetTeller bank, I could not agree more with your NetTeller assessment. However, my bank is now partnered with Intuit Financial Services, formerly Digital Insight, and I could not disagree more with you with regards to customer service/support. We have very few issues that require support, but when we do, we receive first class service and consider Intuit Financial Services one of our most valued and responsive relationships. How could I complain when most of our issues are resolved with one support call?