Page 1501
`
`DDR Holdings, LLC - Ex. 2004
`Shopify, Inc. v. DDR Holdings, LLC
`IPR2018-01011
`
`

`

`‘, OUR/S?
`
`13:07 PM 905 475 3881
`
`NORDSGN CUST SRlr
`
`ENDS/005
`
`link to "wwwdigitalrivemom" The Dealer shall pay the Company the one-
`time set-up ice specified on Exhibit A, and the Company shall provide
`reasonable assistance to the Dealer in establishing the aforementioned link
`and duplicating the Site. Ail orders for the Products shall be transmitted
`directly to the Company- The Company shall be responsible for the
`processing of payments made by End Users, payment of all applicable credit
`card tranSaction fees, payment and filing of all applicable taxes, and for the
`delivery of the Products to the End Users.
`4.
`CommiSsions - The Dealer shall be paid a commission based on a
`5p
`:1 in Exhibit A. Withm thirty (30) days after the crud of each month the
`Company will remit cornnfissions to the Dealer based on armunts actually
`received by the Company during the immediately preceding month. As used
`in this Agreement, the term "net sales" shall mean the actual amount paid by
`an End User for the Products, reduced by sales and use taxes and delivery
`charges. The Company may from time to time adjust the amount of
`commissions payable to the Dealer based on returns, refunds, and exchanges.
`
`period of one (1) year thereafter. Unless the Company provides written notice
`of termination to the Dealer prior to the cXPiration of the initial term or any
`renewal term, this Agreement shall automatically be renewed for successive
`one (1) year terms.
`
`
`Monthly Sales Requirement « On a men
`6.
`
`‘
`the amount of the Products specific
`fails to sell such ampuntk
`er
`
`
`
`
`customers and End Users that purchased th
`Site during the immediately preceding month (the Customer List)- The
`Dealer shall have the right to use the Customer List in connection with its
`salon and marketing activities. The Dealer shall not reproduce or distribute
`the Customer List without the consent of the Company, and the Customer
`list may not be sold or otherwise transferred to any other person or
`organization
`3.
`Confidential Information — All of the trade secrets and other
`confidential information relating to the Company and the Products,
`
`DR149795
`
`Page 1502
`
`Page 1502
`
`

`

`" 01/23/97
`
`13:07
`
`Fax 905 475 2.351
`
`NORDSDN cusr snv
`
`mun/005
`
`including without limitation, methods, processes, configurations, intended
`uses, marketing plans, financial information, business plans, the Customer
`List, and inventory inf rmation shall be maintained in confidence, and the
`Dealer shall not, during the term of this Agreement or subsequent to the
`termination of this Agreement, divulge to any other person or organization,
`or use in any manner whatsoever, directly or indirectly, for any reason
`whatsoever, any of the trade secrets or confidential information relating to
`the Company and the Products without receiving the prior written consent of
`the Company. The Dealer shall take such actions as may be necessary to
`ensure that its employees and agents are heund by the provisions of this
`Section.
`9.
`Distribu ‘on Restrictions - The Company shall be the exclusive
`electronic supplier of the Products for the Dealer at the Site. At the Site, or
`through the use of similar electronic distribution systems, the Dealer shall
`refrain from advertising or promoting the electronic sale of the Products by
`other persons or organizations.
`
`Indemnification — The Company and the Dealer shall indemnify,
`.11.
`defend, and hold harmless each other and their successors and asaigns from
`and against any and all manner of action or actions, suits, claims, damages,
`judgments, levies, and executions, including reasonable attorneysi fees,
`whether known or unknown, liquidated or urfliquidated, fixed, contingent,
`direct or indirect, that relate to the conduct of their respective businesses or
`the breach of any of their respectiva obligations under this Agreement.
`
`DR149798
`
`Page 1503
`
`Page 1503
`
`

`

`01/28/97
`
`18:05
`
`FAX 905 475 3881
`
`NORDSON CUS’I‘ SRV
`
`loos/nos
`
`Bankruptcy Act, or any other statute or law providing for the modification or
`
`Miscellaneous — Injunctive or other equitable relief shall be a remedy
`14.
`available to the Company in the errant of a breach of any provision of this
`Agreement by the Dealer. In no event shall the Company‘s liability to the
`Dealer exceed the aggregate amount of commissions paid to the Dealer by the
`Company during the one (1) year period imrnediately preceding the date of
`termination of this Agreement. Any notices required or permitted to be
`given under this Agreement shall be sufficient if in writing and personally
`‘vered or sent by certified mail to the address of the other party at the
`address set forthherein. The Dealer may not assign its rights or delegate its
`duties hereunder without receiving the prior written cement of the
`Company. The waiver of any provision or the breach of any provision of this
`Agreement shall not be effective urfless expressly made in writing. This
`Agreement shall be governed by the laws of the State of Minnesota in
`United States. For the purpose of resolving conflicts related to or arremg out
`of this Agreement, the parties expressly agree that venue shall be in the State
`of Minnesota only, and, in addition, the parfies hereby oonssnt to the
`jurisdiction of the federal and state Courts in the State of
`'
`ota. In the
`event any portion of this Agreement shall be held to be invalid, the same
`shall not affect in any respect whatsoever, the validity of the remainder of
`this Agreement. This Agreement sets forth the entire understanding betWeen
`the parties, there being no terms, conditions warranties, or representations
`other than those contained in this Agreement, and no amendments shall be
`valid unless made in writing and signed by the parties to this Agreement.
`
`
`
`DR149797
`
`Page 1504
`
`Page 1504
`
`

`

`Witwai11.!111:1)1V1wl‘uru
`
`
`
`" 1°1lo.()irliuellccniooSimrcujes
`
`1
`
`loseph .t'hriraels.nticlro11 Poise! arthelauo Ross i'rr'iii'irroli
`
`Wiser“11,:.1anwow
`
`Executive Summary
`
`Introduction
`
`Over the pastvear seicral coinpa
`es anginp.1 tron rc11ional 111111111111 Service Providers to global telecommunications
`111eractive 11111111111111 pro1e11no so1111111111 101
`giants have annorated their rrtention topo11deane11‘ breedi011
`bird11111111 and 1l'1eir customers.
`
`
`
`
`
`Ties: companies seek to use the [i teri ct to provide automated seriiecs to financial institutions and companies 111a
`growing number ofother industries
`these services typically enhance customer service, marketing and new sales
`eti'orts The duality of these products and services tends to van-1 greatly among competing.1 firms and does not always
`correspond to aiirrir’s size or die n atu 111' of its products.
`
`This report examines a cross-section at the companies which provide web-based transaction processingiand other
`related services row ottiered 111 Svntelleci
`lutormaiiron 110111 a number or sources has been compiled filtered and
`antlired to produce 111 insitrhiis 111 111' will help shape 31'ntelleet1 laternet strategs
`
`Competitive 141111111111
`1 Ahandfulotcompaniesthrcacr. hesueeessotStatellcet lnteractiveSen'ccs 11°11nsto pentactic onln1
`transaction processing market int1.11 linorrcial industry:
`--
`(‘lieektree Corporation, (111111 b s Significant supplier power and strong evistna capabilities
`, Security First Technologies 111111 its substantial experience, partnerships. and refored product offerings
`Digital insight a kick possesses a large customer base among credit unions 11111111 aggessively' targeting this riicliemarket
`
`"
`
`ratio. Oirliue liceisioo Simrcujes
`
`3
`
`loseph .t'hriraels.nticlro11 Poise! and Delano Ross i'rr'iii'irroli
`
`lHBLUUUHUL11
`
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`
`WELLECT
`Win-11svvcswmaimriw
`
`Contents
`
`Executive Summary
`
`Competitive Anulysis
`
`Competing Providers:
`
`m Security First Technologies
`
`~Fise11; lne.
`
`~ CFl Proservices. Inc.
`
`w Syinitar Systems. lnc.
`
`~ Digital lnsight
`
`— lntegrion Financial Network
`
`~ ClreckFree Corporation
`~ ORCC
`
`— Edity Corporation
`
`~ mar Corporation
`
`Q—Lip Systems
`n BBN Planet
`
`— Call Interactive
`
`— MicroSolve Coriipuier Solutions. 1111.
`
`implications and Recommendations
`
`Analysis ofPricing Alternatives
`
`Review ofAlternative Strategies, Potential Markets
`
`2991300500
`
`7991300500
`
`“1‘31 1991'). 0111111 Deein‘on Santana
`
`1
`
`Joseph \rlicliaels 11.111111 l’orsel arr: Delano Ross 911111111111
`
`MILL|l'..t1.‘V'Vmenu‘irV1.7
`
`Executive Summary
`
`1
`
`U
`l
`I
`1
`I
`1
`Analysis of Home Alternatives
`-
`Pics: b11111 is a critical success 111c1ortor' all customers. particularly larger banks. Careful understanding of cost
`drivers and revenue expectations can facilitate customized pricing for key customers
`
`1
`
`Smaller institutions prcl'cr lovv setup fees with higher variable charges and minimum monthly lee requirements
`
`- Medium-sized 11311111110115 are viable service bureau customers and roll pay higher setup costs for more
`customization and somewhat reduced variable charges (per-account or per-transaction ices)
`
`Review ofAliernative Strategies & Potential Markets
`- Over the next decade. countless new 1111111111 will require transaction processing services Syrrtellect should
`consider new strategies 11'T'Clt begin to address 11rese iiuure customersrand their needs now, Syntellect can
`leveraeeit1' integrated NR and NR capabilitrres to serve iiiditioiial markets including
`— Retail transaction processing for merchants
`- Benefits enrollment and insurance providers
`, Corporate intranet development
`-
`\‘on‘aauk (private label) eredt card issuers
`—
`('reriitbureaus
`
`- Airline frequent flier and other point-based programs
`,
`information providers
`
`-
`1
`
`Svntelleci should strive to provide turnkey solutions
`Spitellect should consider creating alliances irith core processors to resell its solutions
`
`“1‘3 199110111111 Deein‘on Santana
`
`1
`
`Joseph \rlicliaels 11.111111 l’orsel arr: Delano Ross 911111111111
`
`Page 1505
`
`Page 1505
`
`

`

`WELLECT
`wrhthlHeormor-utuoa
`
`WELLECT
`WlHlllpianmqswtvw
`
`Executive Summary
`
`Recommendations
`
`'
`
`'
`
`-
`
`la the transaction processing market Syntellccr interactive Services cart talrc the following steps to comba:
`its. competitors and create sustainable competitive advantages:
`--
`leverage the company‘s strengths, such as its ownership ot'a seoice bureau. well-known lVR products, readily atatlable
`llVR products, and general telephony experience
`, Fonn strategic partnerships with a variety of industry players in order to access greater numbers of customers. Suggested
`partacrshipsmclndc:
`.
`lntegrioo Financial Nettvortt
`-
`Synnitar Systems, lac
`Eliserv
`
`Smaller interact battling solutions providers with strong regional ties
`'
`Lise innovative and flexible thinking to create marleting strategies which seek untapped customers tanrl unexplored
`solutions to theirneetls)
`
`--
`
`Syntellect needs to work quickly to take advantage ol its immediate readiness to tiller products and SCthCGS.
`especially \Vl'lzle its relatively Slim competitors continue to develop their products and lose ground in
`building their customer bases
`Syntclloct should offer electronic cormrroroe services targctrri to merchants
`— The company’s service human already possesses the core systems and Sutton: necessary to provide these timetrorrs
`-- Eipertsproieet that the market for e-eonrneree services ttill grou exponentially For several years
`A
`Ely adding e-comrrrer'ce services, Syntelieer will be able to offer companies more complete interact-based solutions which
`better meet them needs
`
`“
`
`:‘lllo. Onlizre Dccrsioo Strategies
`
`5
`
`loseph shrinelsi Michael Fair! and Delano Rois t'rr‘rrctnoir
`
`WELLECT
`Waco“it:'a'mowow
`
`(owns-mom)
`
`Company Profile:
`
`Competitive Analysis
`
`:"E‘ZttlltlL-JLSIE
`
`
`
`Security First (formerly Five Paces) provides internet banking solutions including
`software sales and outsourcing solutions
`
`The company has gained market attention through its lnternet hanlt subsidiary,
`Security First Network Bank.
`
`Products:
`
`' Financial Services Applications
`
`- Virtual Bank Manager
`
`~ Virtunl Credit Card Managcr
`
`w Virtual investment Manager
`
`— Virtual Loan Manager
`
`Security Products
`
`Architecture
`
`lmplernentation
`
`Consulting Services
`
`“
`
`:tllo. Onlizre Dccrsioo Strategies
`
`‘2
`
`lrueph shrinelsi Michael Fair! and Delano Rots t'rr‘rrctnoir
`
`2.2951003qu
`
`LHBLUUUHULP
`
`9991300500
`
`9991300500
`
`Competitive Analysis
`
`G) 1991). Guitar Deein‘on Strategies
`
`t)
`
`Joseph \rhclrtcls h’l-Cliflal l’oncl arr: Delano Ross Foucault
`
`WELLECT
`WlHlllpianmqswtvw
`
`Competitive Analysis
`
`Security First Technologies mm
`
`
`(WWW.S‘1 'com)
`
`‘iECttNOLOtSlEb
`
`Product Feature ':
`
`0 Financial Services Applications
`
`m Virtual Bank Manager
`- Allows hank customers to perform secure banking transactions over the [runner
`Account summary it statement information
`llnltnc‘ cheek imaging
`lirll payment tit payment reports (by category or payee}
`-
`. Cashtlowrcports
`- Reconciliation reports (reconciletlte concur bank balance against the current register balance identifying
`discrepancies between the bank statement and register)
`- Onlinc ltclp
`All graphics teit. etc cart be customized for each bfliih'
`
`G) 1991). Guitar Deein‘on Strategies
`
`a
`
`Joseph \rhclrtcls h’l-Cliflal l’oncl arr: Delano Ross Foucault
`
`Page 1506
`
`Page 1506
`
`

`

`,SY‘NTELLECT
`Mtutiinrurr
`
`Competitive Analysis
`
`WELLECT
`Wl\listrum.“9:5".er
`
`Competitive Analysis
`
`tnsr.
`
`
`
`Security First Technologies mm
`use
`:ECitWLOGl ES :
`
`
`(wow.8-].corn)
`
`Target Market:
`
`Security First Technologies mm
`
`:"E‘ZitNCL-JGIES
`
`(warms-1mm)
`
`Product Features:
`
`. Financial Services Applications
`
`w Virtua Credit Card Manager
`.
`T’rowdcs credit card customers access to a real-time account statement
`.
`Interface is similar to bank account iolsnnation
`
`. S-l has signalediits intent to donrinate the online banking market. The company
`
`aggressively promotes rtselt at trade showsin industry publications. and online
`Tire companyshank, Securitty FirstNetwork Bank (SFNB), has proven to be a
`useful sales tool (proving that it works) but some banks have expressed concerns
`over St ’s ormcrship of a competing institution.
`
`. Currently. the company’s oldest domestic client (excluding SFNB) is Huntington
`Banks. a stakelroider in S] Corporation. S-l also recently signed an agreement with
`the Australia and New Zealand Banking Group, Ltd. (ANZ) to sell the Virtual
`Financial Manager (hank suite). A total of i3 financial institutions have signed up
`for S- | ’s products and services, and 7 ofthese will use the outsourcing option (8-1 ’s
`Service bureau).
`
`- The service bureau (outsourcing) option appears to be favored by smaller
`
`institutions. whereas larger customers tend to purchase the solution outright. (The
`seven outsourcing clients manage approximately $30 billion of the $230 billion
`under management by all 3-] clients.)
`
`(‘3) 1991). Guitar Decin‘utr Strategies
`
`ill
`
`Joseph \dtchaels aroma l’ruscl nu: Delano Ross Foucault
`
`WELLECT
`Wl\liHome.“9:5".er
`
`Competitive Analysis
`
`Security First Technologies mm
`use
`
`
`
`(wow.8-].corn)
`
`:ECitWLOGl ES :
`
`Strategic Partnerships:
`
`. Unisys
`
`m Unésys has agreed to recommend S-l products to its systems customers who seek interact
`solutions.
`in exchange for this. S-i is rewarding liuisys with “commissions” for sales
`made through their referrals.
`it is uncertain whether this partnership has yielded any
`clients for S-l. but the relationship is actively pursued by S-l.
`
`° Ailtci
`
`~ .Alitel is the preferred service bureau used by 8-1 customers who choose the outsourcing
`option. Ailtei also actively promotes S-l products to its other financial institution clients,
`including National Commerce Bancorporation. which recently selected S-l as its interact
`solution provider.
`
`. Visa interactive
`
`v Viisa interactive marketsS-s i's Virtual Financial Manager suite as its lnternet barking
`solution and as a complement to its remote banking and bill payment services. Visa
`interactive claims to utter its own solution as troll, but no product literature is available.
`Security First has agreed to make its technology compliant with the Access Devise
`Messaging Specification (ADMS) financial systems standard created by Visa.
`
`(‘3) 1991). Guitar Decin‘utr Strategies
`
`r3
`
`Joseph \dtchaels aroma l’ruscl nu: Delano Ross Foucault
`
`Page 1507
`
`
`
`— Virtua investment Manager
`'
`\‘a yet available. this will enable financial institutions to add ltroketagc services to their product lines
`-
`liri imeiitrteirrrestinentresearch and financial analysis Nornention ol‘r'eai time oi delayed stock quote
`artulnirilry.
`
`w Virtuu loan Manager
`.
`\o yet oyaiiabie, this still enable applrcotions for personal or corrrrocrvral loans oniitre
`.
`Payments in loans car be made between cnirue accounts
`
`~ Virtua \lct Worth
`
`.
`
`All components car (will) be integrated so that cusromers can view total portfolio ofdebirs and credits
`
`- Bill Payments
`. Contracted through Clreclrl’rce. S-l allows unliue scheduling ofbillpayinertts in pretty standard approach)
`
`bYBLUUUHULP
`
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`
`‘3 10%. Guitar Decrsioo Strarevjes
`
`a
`
`loseph abducts. Michael l‘oisc! and Delano frost
`
`i'rr'rn'uroir
`
`WELLECT
`M'tumII!"o.“Nr-Iare
`
`(warms-1mm)
`
`Strategic Partnership '.'
`
`. SunMicrosysterns
`
`competitive Analy5i5
`
`rteauctions -{
`
`
`
`v S- twill developaversion of S l's Virtual Financial Managertint still run itrasecu“
`operatirngeuiroinrnentbasedooSunsliitraSMRl piattirrnrtrunning Solaris 8- i uiliaiso
`incorporateelasatechnologymtottitsVFM architecture. thusenhancirnglntcmettintranct
`functionality and providing universal access to 8-1 applications across multiple platforms.
`Sun's global sales, marketing and distribution channels will promote the S-l solution on
`the Sun platform as well.
`
`- CbeckFree Corporation
`
`a S-i has an agreement with CheckFree in uhich Checkiree provides back-end bill payment
`processing for 8-] ’s Vl’hl customers. and utilizes VFM for their bill payment services. as
`well. Additionally. Checkl‘ree is supposed to re-market Security l irst7s VFM solution to
`their financial customers. The extent to which the latter occurs is uncertain. given that
`Cheekl‘rec has a, competing solution of its own. To date, S-l has not gotten any new
`clients through this partnership.
`
`I‘, 10%. Guitar Decrsioo Strarevjes
`
`t ]
`
`loseph abducts. Michael l‘oisc! and Delano frost
`
`i'rr'rn'uroir
`
`069130050Ct
`
`269130050Ct
`
`Page 1507
`
`

`

`an”
`
`WELLECT
`
`Security F
`
`(warms-1mm)
`
`Competitive Analysis «mu-5m
`
`[\liLiJ’J
`
`Competitive Analysis
`
`
`
`Security First Technologies
`
`(wnwS1 c0m)fEttiV0l.01§lE
`
`Strategic Partnerships:
`
`' Hewlett Packard
`
`Strategic Partnerships:
`
`r Quintus Corporation
`
`v S-l usesllP'sVirtnalVauitseeurinttechnology:mitsViMproductililis1rr1ol1edintbe
`development otS- i prodrrctsandrs essentrall1 asupplrer M i. S- lretersclientstollP
`for systems solutions as an added leature of this relationship. HP promotes SFNB and Si
`solutions in the retail banking section at its web site.
`
`m Quintus and S-l have partnered to createanintemet call centerdesigned to consolidate
`inquiries received through various communication channels. includingvoice response unit
`atrd e-mail. and to direct those inquiries to highly targeted response teams l'or elfieient
`customer service, Quinrus provides expertise in Web interaction with call centers.
`
`' M&l Data Services
`
`° Open Banking Consortium (member)
`
`1s
`
`iosqthvhelaclshitclraeli’rrrselsrchlannRessPrrnrnrrir
`
`U
`
`U i
`
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`
`~ 11111 is one oi‘the banking irtdustry’sleading core processors S-lltas an exclusive
`arrangement with .\i&l whereby M811 will promote only Svl internet banking solutions to
`its customers. M&l is also the service bureau used for processing SFNB transactions (a
`legacy ol' Cardinal Bancshares" relationship with Mdcl).
`
`- Computer Services, inc.
`
`~ Structured similarly to the M&i relationship. Computer Services is a “core processor” of
`banking data and will rrrarket S-l products to its customers.
`it will also use S-l’s service
`bureau for the front-end processing of interact banking applications
`
`3
`U
`
`g
`
`15:NtothriizreliccrsiooSrrareejcs
`
`13
`
`lotcphshrirrelsnlhclracll‘nisclsrthelanoRorsi'n'rr'urnir
`
`
`
`Competitive Analysis
`
`:EttiMiLOlSlE IRST.
`
`(warms-mom)
`
`Security First Technologies
`(new.81 .com)
`General Observations:
`
`355111111
`
`
`
`Pricing:
`
`' Setup fees: $40,000
`' Per customer fees: Variable. This fee amount has an inverse relationship with the
`number ofa client bank’s customers,
`
`' S-l shows a strong willingness to be flexible with pricing within a certain range.
`Each client may have a different contract with 8-1. but each contract is designed to
`rtreei S- l ’5 costs and achieve revenue targets,
`
`1 S-l is probably Syntellect’s nrost significant competitor in the financial institutions
`market. They have several advantages 0V3" Syrrtellect at 1063th
`A Momentum - Security First has been in the market for 3 years and has attracted lots of
`media attention to its product ofierirrgs, primarily through SPNB l_“tlre first interact
`bank”).
`
`~ Partnerships- S- l‘s strong relationships with kev partnersparticularly the exclusive
`reterraldeals111thtocrottlrese1enmarorcore processors(illiteliMite&lComputer
`Services. and Machine}. are rrrrporarrtassetsire company. S1neliect11ust burld
`similar relationships in order to ensure full recognition of its web capabilities.
`
`~ Product Development - S-l has bad a longer time to work on its product and a larger group
`of programmers as well. Syntellect should be able to benefit from S-l‘s experience,
`however. and this should mitigate this advantage.
`
`1 S-l does not appear to be interested in markets other than financial services at
`present. Syntellect's willingness to enter diverse markets can strengthen its bid to
`enter the e-eommeree market and accelerate the teaming curve to the point at which
`many ofthe advantages enjoyed by 8-1 can be met or overcome.
`
`SfiBLUUUHUU
`
`1°00. Orriizre Decrsioo Srrareejcs
`
`15
`
`lotcph shrirrels. Michael l‘nisc! and Delano Ross i'n'rr'urnir
`
`969130050Ci
`
`’13; i991). Uriint Decis‘on Strategies
`
`11
`
`Joseph \rhelacls h'llc'hael i’orsel 111: Delano Ross Prrnrnrrir
`
`Page 1508
`
`Page 1508
`
`

`

`so"?
`,,5YNTELLECT
`Maternity:tremor-uses:
`
`Competitive Analysis
`
`SYNTELLECT
`Mitts-w .s camoavmiw
`
`CF] Proservices, Inc.
`
`(www.ciiprocom)
`
`Company Profile:
`
`ii‘rmtiizrx‘r-‘H:
`
`
`CFI
`
`‘
`
`'u'
`
`. CF] Proservices claims to be the largest provider of PC—based software to the US,
`banking industry, with over 5,000 financial institutions using the company’s
`products and services
`
`-
`
`the company seeks to automate lending, operations, home banking, and customer
`sales and service for financial institutions
`
`CF] Proservices, ]nc.
`
`(www.ctipro.com)
`
`Product Feature ':
`
`0 Persona] Branch
`
`m Accountbalances
`
`Account histories
`
`w Funds transfers
`
`v Bilipayrnent
`
`Competitive Analysis
`
`i‘flt’ififlt‘t‘tfl H. {C II‘.
`CFI
`
`- CFI’s products WebPB and iavaPB enable their customers to otter full-service
`interactive solutions
`
`— Download ol‘hislory interruption to personal finance soliware Quichea, iii/loner. and
`Managing Your Money
`
`Products:
`
`' Personal Branch (PC banking)
`
`— cherB and .iarnPB (interact banking), ioanPB
`
`- Encore! Call Center
`
`- ACH Manager (processes file transfers between corporate customers, the Fed, and
`other ACH operators]
`
`-
`
`StarCrate (tnitldleware product)
`
`' Self-Sew ice Terminal (kiosk software)
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`— Payroll distribution information
`w intrabank transfers
`
`~ Tarintirrrnation
`
`— Institution news and information
`
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`
`is
`
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`so"?
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`Maternity:tremor-uses:
`
`Competitive Analysis
`
`SYNTELLECT
`Mitts-w .s camoavmiw
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`
`
`CFI
`
`Filmy”; PW"? l‘ t} ilH‘C
`
`
`CF] Proservices, ]nc.
`
`(www.ctipro.com)
`
`Target Markets:
`
`Competitive Analysis
`
`i‘flt’ififlt‘t‘tfl H. {C II‘.
`
`CF] Proservices, Inc.
`
`(www.ciiprocom)
`
`Product Features:
`
`. Encore! Call Center
`
`w Customer Service Module
`
`'
`
`Prowdes n‘misaction detail statement detail stop function, and warning function
`
`A information Reference Module
`
`‘
`
`Provides check orders customer contact history, rrrtiliogs, hrurrclr directory, bulletins. institution policies and
`procedures, product information. rate information. nhar-it’calculaiions tar and phone referrals, and inter-institution
`telephone directory
`
`— Telemarketing Sales Module
`.
`Prowdcs ctrstcmer profiles account opening lead backlog, mail. product information, coupon processing: call
`follow-up fax and phone telei'ral. account opening, document preparation, cull history. customer demographic and
`psychogtaphic attenuation. productrecommendations rate nomination. and what-if calculations
`
`~ Letter Fulfillment Module
`-
`Provides letter requests, letter templates, letter printing, data merge, information about collateral materials, and
`iiiltillmert reports
`
`w Reporting Module
`'
`Provides standard reports and ail-hoe reports
`
`0 CF] mainly targets the credit unions and community banks. which typically prefer
`outsourcing over outright purchase for technology solutions
`
`Strategic Partnerships:
`° Hewlett Packard
`
`~ HP lists CF] as a “channel partner” under l-lP’s virtual bank manager product uttering,
`implying that the companies have a mu ual reseller agreement for each other’s services
`
`- Credit union core processors - Afteclt, Automated Systems, CU Processing, Fiserv
`Savings & Community Bank Group Southwest Region. Fiserv Galaxy, Fi’l‘ech,
`Member Data Services, Share One, Summit lrrionnatiorr Systems. and USERS
`
`~ C F] has developed interfaces for the host processing systems of these companies all of
`which serve credit unions
`
`v Chi and these companies also have co-irrarheting agreements in place for Chin Personal
`Branch product
`
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`
`1r,
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`
`Page 1509
`
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`Page 1509
`
`

`

`
`
`Competitive Analysis
`
`m
`,SVNI‘ELLECT
`Mitts-m .u tumorvmtcw
`
`CFI Proservices, Inc.
`
`(warwriiproxom)
`
`General Observations:
`
`
`
`CFI
`
`WINK Mt"? l‘ t} il‘a‘C
`
`
`Digital Insight
`(wwwdiginsitecom)
`
`Products:
`
`Competitive Analysis
`
`
`
`' CFl has focused on small financial insritutions and credit unions. Note: There is
`
`0 AXIS Intemet Access Account System [Home Banking)
`
`concern in the market over whether their solution is scaleable to larger settings
`
`° Web services
`
`- CFl’s Personal Branch sottware has wide acceptance. which gives the company
`plenty of opportunity to transition the financial institutions using PB over to Ci‘l’s
`
`Product Features:
`
`new internal-based products
`
`- CFI’s clever strategy: core processors ultimately resell CFI’s solution
`
`- Syntellect should consider mirroring CFl's partner/reseller strategy
`
`- AXIS Internet Access Account System [Home Banking)
`~ Account balances
`
`- Account histories
`
`m Fundstransiers
`
`Donniuad of history inform alien to Quicken
`
`m Bill Payment System
`
`~ Internet Stock Quotes
`
`° Web services
`
`- Site development, maintenance. and hosting
`
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`10%. Online Decuiun Strategies
`
`1]
`
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`(‘3) 1991). Uiiint Dcein‘ou Strategies
`
`13
`
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`
`so"?
`,,5YNTELLECT
`Museumtummy-utters
`
`Digital Insight
`(wwwdiginsitecom)
`
`Target Market:
`
`Competitive Analysis
`
`«WELLECT
`MILWI'J .: Lon'morrmicw
`
`Competitive Analysis
`
`
`
`Digital Insight
`(wwwdiginsitecom)
`
`General Observations:
`
`
`
`' Digital insight has 8i clients, ‘27 ofwhorn use the company’s AXIS home banking
`product. Credit unions comprise almost all ofthe clients, however the company is
`also clearly targeting the broader financial institutions market.
`
`Strategic Partners:
`
`' Travelers Express Company
`
`7 Provides the bill paying service used to process Digital Insights payment transactions
`
`' Symitar Systems
`
`~ This top-Zil-rankcd core processor for credit Luiions err-markets Digital Insights solution
`with its own home banking product, apparently as part of a licensing arrangement similar
`to those used by Security First technologies
`
`0 Digital Insight gained market acceptance by creating and hosting web sites for small.
`financial institutions such as credit unions
`
`- The company’s customers now see its transaction—based product as the next
`progression in lnternet-related services
`
`- For example, the credit unions no longer simply use the lntcmet as a marketing
`channel; they are beginning to use it: as a distribution channel for interactive services
`
`w This trend suggests that as they become comfortable with the technology, financial
`institutions will accept the evolution of interactive products
`
`0 These observations support Syntellect’s decision to position its IWR product as the
`next step in interactive banking services for its current customer base
`
`10%. Online Decuiun Strategies
`
`13
`
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`
`1;
`
`Joseph \rltcltrcls h’i-t’ilflai l’rusel tin: Delano Ross Prrnrntrlr
`
`Page 1510
`
`Page 1510
`
`

`

`Competitive Analysis
`
`,.
`WELLECT
`Mitts-m .e tavmoswncw
`
`Competitive Analysis
`
`m
`WELLECT
`ormons:swam-unmet
`
`i M
`
`CheekFree Corporation
`(www.checkfreecom)
`
`CheckFree Corporation
`(www.checlrfreecoml
`
`Company Profile
`
`' A $678 million company which provides electronic bill payment and collection,
`electronic home banking, and other electronic commerce-related services for
`consumers, businesses and financial institutions
`
`' Operates a series of service bureaus -- in Austin, Chicago, Portland (OR), Columbus,
`
`and through lntuit Services Corporation -- which enable Checkfree to handle the
`outsourcing of bill payments for 850 financial institutions including Wells Fargo,
`
`PNC5 Chase. NatiousBank, Bank America, and Bank One
`
`- Two Checkfree service bureaus olier outsourcing services similar to those available
`through Syntellect
`
`- Using real-time network links and working off strip files, these centers located in Chicago
`and Austin offer banks the ability to outsource key online banking functions such as
`account balance information, fund transfer. etc.
`
`Products:
`
`0 CheckFree BankStreet Web
`
`° CheckFrecE-Blll
`
`° StockQuote Service
`
`Product Features:
`
`' CheckFree BankStreet Web
`
`~ thin-client web banking software originally created by software company Servantis
`
`~ can be customized by banks to lecture bank's own brand name, logo, etc.
`
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`
`CheekFree Corporation
`(www.checkfreecom)
`
`Product Features:
`
`' CheckFree E—Bill
`
`w Service which allows consumers to receive and pay bills electronically
`
`Works directly through CheckFree on the web
`
`~ ls not capable of handling all payees; only companies signed up with Checkfree
`
`- Stock Quote Service
`
`w "the company‘s purchase of software company Secmity APL added the popular stock
`quote web site PAVv’WScom to Checkfrce’s repertoire, giving Checkfrec new
`
`competencies in lntemet—based financial services such as stock trading portfolio
`management. company research, information for investment advisors. etc.
`
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`
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`
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`
`
`
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`
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`
`(‘3) 1991). Dollar Deein‘nu Strategies
`
`Joseph \rlictaels arena l’mscl are Delano Ross Pharaoh
`
`
`
`‘alrcw
`
`Competitive Analysis
`
`CheckFree Corporation
`(www.checlrfreecoml
`
`Strategic Partnerships:
`0 Microsoft
`
`m linables BankStreet Web and the web sites ofCheclrliree bank customers to leverage
`Microsoft's ActiveX technology which will enable them to create more sophisticated user
`interfaces and operate much like fat-client personal linancc software
`
`QuestPoint
`
`v Adds QuestPoint‘s transaction processing capabilities and its list of bank clients and retail
`clients
`
`Security First Technologies
`
`7 Has aioiut marketing agreement with S~l
`
`lntegrion Financial Network
`
`~ Makes Checkfree's bill payment and other back-end services available to members of W
`
`Intuit Services Corporation
`
`~ Brings online users of Quicken personal linancc software to Checkfrcc
`
`Also AT&T, Automatic Data Processing, Spyglass, Spry and CyberCash
`
`(‘3) 1991). Dollar Deein‘nu Strategies
`
`1s
`
`Joseph \rlictaels arena l’mscl are Delano Ross Pharaoh
`
`Page 1511
`
`Page 1511
`
`

`

`an“?
`,,5YNTELLECT
`Maturationtremor-ration:
`
`Competitive Analysis
`
`«WELLECT
`Murmur .e Lamomrrw
`
`CheckFree Corporation
`(wvrwcheckfreecom)
`
`
`
`CheckFree Corporation
`(www.clreckfree.coml
`
`Competitive Analysis
`
`
`
`Target Murkets:
`
`' CheckFree targets several large markets