| Worldwide Online Banking Applications Market: Forecast, Analysis, and Vendor Shares, 2001-2006 |
| DOCUMENT #: |
27865 |
| TITLE: |
Worldwide Online Banking Applications Market: Forecast, Analysis, and Vendor Shares, 2001-2006 |
| LENGTH: |
20Page(s) |
| TYPE: |
Bulletin |
| AUTHOR: |
Albert Pang |
| PUBLISHED: |
08/27/2002 |
| PRICE: |
$2500.00 |
 Purchase this document |
| ABSTRACT: |
The online banking applications market (including both consumer and corporate
online banking applications) had an impressive year in 2001, posting an 89%
revenue jump to reach $444 million because of growing awareness of the online
channel by both banks and their customers as a key delivery channel.
Although the economic slowdown has prompted financial institutions (FIs) to
reevaluate their online banking strategies, the consensus is that in 2002, most
customers expect the online channel as a standard feature from their banks, the
same way customers expect their banks to be part of an ATM network. As a
result, banks will be required to maintain and selectively upgrade their online
banking services.
Additionally, online banking applications will continue to find their ways into
nonbanking institutions, as brokers, retailers, and insurance companies
increasingly offer online banking. Unconventional banking competitors -- like
Charles Schwab, Wal-Mart, AIG, and others keen on expanding their shares in the
banking market -- are drumming up plans to further their online push by moving
into new areas such as financial planning and wealth management, which will
continue to blur the lines between a bank, broker, and carrier.
Finally, bank managers have shifted their objectives for their online banking
businesses away from customer acquisition (where money was spent on new banking
functionality and services) toward the ability to leverage a bank's online
banking investment to achieve internal efficiencies.
Impact on Financial Institutions and Vendors
What that means is that online banking applications vendors will have to adapt
to these trends by differentiating themselves with innovative technologies in
areas like payment processing, portal development, analytics and business
intelligence, Web-based objects for check imaging, account aggregation, and Web
services.
The adoption of new technologies is spreading:
· Citigroup is using Microsoft's .NET platform and XML Web services to build a
new portal by the end of 2002 that will enable its advisors to provide their
clients with relevant investment information compiled from Citigroup's
disparate internal systems as well as 200 other external sources.
· Corillian is also incorporating the .NET platform into its Voyager
application, making it easier for its customers to aggregate content from
multiple media partners in order to build a more attractive and useful
interface that generates more customer interactions.
· Digital Insight is headed in the J2EE direction by building a new platform
that is expected to deliver better performance for its customers when hosting
their online banking sites with Digital Insight.
Globalization of banking networks and the continued expansion of international
trading will result in new requirements for vendors to be more vigilant about
security, compliance, and authentication. In fact, IDC forecasts that North
American banks will more than double their spending on security-related
software to $843.7 million by 2005 from $402.5 million in 2001.
With banks representing between 11% and 16% of total global IT spending through
2005 (significantly higher than most vertical industries), it is likely that
online banking applications vendors will have to operate under many flags and
be proficient in multiple software disciplines in order to succeed in the long
run.
|
| SUBJECTS: |
Business to Business
Business to Consumer
Infrastructure |
|
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