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

`

`, 01/28/27
`
`13:07
`
`FAR 905 475 3881
`
`NORDSGN CUST SRY
`
`003/005
`
`Order and Delivery Process - The Dealer shall continuously maintain a
`3,
`link to "www.digitalriver.com." The Dealer shall pay the Company the ons-
`time set-up fee 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 shallbe transmitted
`
`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 ona
`percentage ofnetsales of the Products. The commission rate shall be as
`specified in Exhibit A. Within thirty (30) days after the end of each month the
`Companywill remit commissions to the Dealer based on amounts 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.
`5,
`Term - Subject to the provisions of Section 13, the initial term of this
`Agreememt shall commence on the date of its execution and continuefor a
`period of one (1) year thereafter. Unless the Company provides written notice
`Of termination to the Dealer prior to the expiration of the initial term or any
`renewal term, this Agreement shall automatically be renewed for successive
`one (1) year terms.
`
`6.
`Monthly Sales Requirement - On a mon
`is, the Dealer s
`the amountoftheProductsasieet8fails to sell such amount,the-Déaler shall
`
`Smpany a
`
`
`amountSpeeénExhibit iscretion0; mpany, the
`
`
`
`i
`ture commissions payable to
`
`7
`‘End User Information - Within thirty (30) days after the end of each
`month the Company shall provide the Dealer with the Company'slist of
`customers and End Users that purchased the Products through the Dealer's
`Site during the immediately preceding month (the Customer List). The
`Dealer shall have the right to use the Customer List in connection with its
`sales 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.
`8.
`Confidential Information - All of the trade secrets and other
`confidential information relating to the Company and the Products,
`
`
`
`DR149795
`
`Page 1502
`
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`

`

`01/28/97
`
`«13:07
`
`FAX 905 475 3881
`
`NORDSON CUST SRV
`
`o04/005
`
`including without limitation, methods, processes, configurations, intended
`uses, marketing plans, financial information, business plans, the Customer
`List, and inventory information shail be maintained in confidence, and the
`Dealer shail not, during the tern 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 bound by the provisions ofthis
`
`Section.
`
`the Dealer.
`
`Distribution Restrictions - The Company shall be the exclusive
`9.
`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 shail
`refrain from advertising ot promoting the electronic sale of the Products by
`other persons or organizations.
`10.
`Nature of Relationship - The Dealer shall be an independent
`contractor and not an employee of the Company. The Dealer shall not
`represent or imply to any person or organization that this Agreement
`authorizes it to act as an agent or on behalf of the Company, other than as
`provided for in this Agreement. The Company shall not be obligated by any
`agreement, representation, or warranty made by the Dealer, nor shall the
`Companybe obligated for damages to any person or organizationfor personal
`injuries or property damage directly or indirectly arising outof the conductof
`44,
`Indemnification - The Company and the Dealer shal! indemnify,
`defend, and hold harmless each other and their successors and assigns from
`and against any and all manner of action or actions, sults, daims, damages,
`judgments, levies, and executions, including reasonable attomeysi fees,
`whether known or unknown, liquidated or unliquidated, fixed, contingent,
`direct or indirect, that relate to the conduct of their respective businesses or
`the breach of any of their respective obligations under this Agreement.
`12.
`Programming Services - As maybe requestedby the Dealer, the
`Corapany may from time to time provide computer programming services to
`the Dealer. The provision of any such computer programming services by
`the Company shall be on such terms and conditions as may be mutually
`agreed upon by the Dealer and the Company.
`13.
`Termination - The Company shall have the right to immediately
`terminate this Agreement in the event the Dealer fails to substantially
`perform any of its material obligations under this Agreement; suspends or
`terminates the conductofits business: or initiates ot has initiated againstit,
`
`DR149796
`
`Page 1503
`
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`

`

`01/28/97
`
`13:08
`
`FAL 905 475 3881
`
`NORDSON CUST SRY
`
`005/005
`
`any act, process, OF proceeding under anyinsolvency law, the Federal
`Bankruptcy Act, or any other statute ot law providingfor the modification or
`adjustment of the rights of creditors.
`14.
`Miscellaneous - Injunctive or other equitable relief shallbe a remedy
`available to the Company in the event of a breach of any provision of this
`Agreement by the Dealer. In no eventshall the Company's liability to the
`Dealer exceed the aggregate amountof commissions paid to the Dealerby the
`Company during the one {1) year period immediately preceding the date of
`termination of this Agreement. Any notices required or permitted to be
`given under this Agreement shallbe sufficientif inwriting and personally
`-vered or sentby 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 consent of the
`Company, The waiver of any provision or the breach of any provision of this
`Agreement shall not be effective unless expressly made inwriting. This
`Agreement shailbe governed by the laws of the State of Minnesota in the
`United States. For the purpose of resolving conflicts related to or arising out
`ofthis Agreement, the parties expressly agree that venue shallbe in the State
`of Minnesota only, and, in addition, the parties hereby consent to the
`jurisdiction of the federal and state courts in the State of Minnesota. 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 entixe 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 signedby the parties to this Agreement.
`IN WITNESS WHEREOF, the parties have executed this Agreement as
`of the day and yearfirst above writter.
`
`THE COMPANY:
`DIGITAL RIVER, INC.
`
`By:
`
`Its: Geoffrey C. Wells
`
`Yts: ©.8.0.-
`
`DR149797
`
`Page 1504
`
`Page 1504
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`

`

`~ Fiserv,[ne.
`~ Symitar Systems, Ine.
`~ Infegrion }inancial Network
`Q-Up Systems
`~ BBNPlanet
`
`” C
`
`aPerieGormanation)
`
`Contents
`
`Executive Summary
`Competitive Analysis
`* Competing Providers:
`~ Security First Technologies
`~ CET Proservives, Jae.
`— Digital Jnsight
`~ CheckFree Corporation
`~ ORCC
`
`~ Call Interactive
`~ MicroSolve Computer Solutions, Ine.
`
`~ Edify Corporation
`~ AT&T Comoralion
`+
`Implications and Recommendations
`Analysis ofPricing Alternatives
`Review ofAlternative Strategies, Potential Markets
`
`©1965, Ontiac Desision Scrategies
`
`be
`
`Joseph Michaels. Michazl Poiscl ane Delano Ross Puiicypals
`
`” C
`
`aPerieGormanation)
`
`Executive Summary
`
`Analysis ofPricing Alternatives
`+
`Flexcbility is 2 exttical success factor for all customers, particularlylarger banks. Careful understanding afcost
`Univers and revenue expectations can ‘aviltiale customized pricing for key customers
`Smailer instituctons prefer lowesetup foes with highervariable cherges and minimum mentily lee requirements
`+
`+ Medium-sized -nstitutions are viable service bureau customers and will pay higher setup costs tor more
`customization and somewhat ceduved vartable charges (per-account or per-transaction fees)
`Review ofAlternative Strategies & Potential Markets
`» Over the next devade, countless newmarkets will requsre transaction processingservices. Syntellect should
`consider newstrategies whchbegin to address these furare customers and their needs now, Syntellect can
`leverage its mtegrated IVR and IWR capabilites te serve additional markets meluding:
`- Retail transaction processing for merchants
`~ Benefits earollment and insurance providers
`~ Corporate infranet development
`+ Nonauk (private label} credit cata issuers
`~ Credit bureaus
`
`~ Aithine fioguent fher and other pointbased programs
`—
`Informacionproviders
`Syntellect should strive to provide turakey solutions
`Syntellect should consider creating alliances with core processors to resell its solutions
`
`+
`+
`
`© 965. Ontiae Dezision Seratemies
`
`4
`
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`Page 1505
`
`zeosooeraG
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`reosooeHaG
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`f
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`ut Iekeoniye Camamyaganiona
`
`Contents
`
`
`
`© 1996, Ontine Decising Srraregies
`
`i
`
`Joseph Michaels, Michael Poise! ard Dolana Ress. rrtticlnads
`
`f
`
`ut Iekeoniye Camamyaganiona
`
`Executive Summary
`
`'
`Introduction
`
`ranging from: sevional Internet Service Providers to gtobal telecommunteat:ons
`Over the past year, several companies
`giants have announced Lheir itention to provide a newbreed ofinteractive {rensaction processing soluuoas for
`businesses and their customers.
`
`IS
`
`
`
` s significant supplier power and strong existing capabilities
`
`These compares seek to use the Intersel lo provide aulomaledservices 10 ioauctat unstituvions and companiesin
`prowing number ofather industries.
`‘These services typically enhance customer service. marketing, and ewsales
`citors. The qualityofthese products and services sends to varvgreatly among competing firms and does not abvays
`correspond to a lirm’s size ar she maturityof its products.
`This report examines @ cross-section of the companies whieh provide web-based transaction processing and other
`related services row offered by Syntellect
`Information froma number of sources has been compiled, filtered, and
`analvzed to produce key insights which will help shape Syntelleet’s Internet strategy.
`Competitive Analysis
`«A handful of companiesthreaten:
`transaction processing markel wn U
`~
` Checkfsee Corporation, which hy
`— Security First Technologies, with its substantial experience, partnerships, and refined product offerings
`~ Digital tasight, which possesses a larye castomet base among credit unions and is aguressivelytargeting this niche market
`
`he success of Syntellect Interactive Services’ efforts to penetrate the online
`ve financial ndusirs:
`
`© 1996, Ontine Decising Srraregies
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`
`PEOLUCORUILE
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`eeeLUUOHUL
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`

`”
`CaPerieGormanation)
`
`Competitive Analysis
`
`©1965, Ontiac Desision Scrategies
`
`6
`
`Joseph Michaels. Michazl Poiscl ane Delano Ross uiicypals
`
`Competitive Analysis
`snprr
`
`FIRST.
`
`
`
`TECHNOLOGIES
`
`” C
`
`aPerieGormanation)
`
`Security First Technologies
`
`(wiw.s-l.com)
`
`Product Features:
`
`* Financial Services Applications
`~ Virtual Bank Manager
`+
`Allowsbank customers to perform secure bankitg transactions overthe Internet
`+ Adconnt summary & statement information
`+ Online check imapirg
`Bill payment & payment reports (hv category or faye}
`Cash flow reports
`Reconciliationreports (reconcile the current nark balance againthe curvent registerbalance, identifying
`disorepancies between the bank starement and register)
`Online help
`All graphics, test, ef. can be customized for each bank
`
`+
`
`+
`
`©1965, Ontiac Desision Scrategies
`
`8
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`
`Executive Summary
`
`Recommendations
`
`*
`
`+
`
`+
`
`Tn the transaction processing market, Syntellect Interactive Services can takethe following steps to cernbat
`its competitors and create sustamnuble compentive advamaves:
`~ Leverage the cormpany’s strengths, such ag its ownership of'a service bureau, well-known IVR products, readily avadabie
`IWRproducts, and general telephony experience
`Form strategic partnerships with a variely of industry players io order to access greater numbors of customers. Sugzested
`partoerships include:
`+
`Sntegtion Financial Network
`+
`Svrnutar Svstems, lnc.
`+
`sone
`
`—
`
`Smaller Intemet banking solutions providers with strongregional nes
`+
`~ Useinnovative and fleable thinking to create marketing strategies which seek untapped customers (and unexplored
`solutions (a their neads)
`
`Sviellect needs to work quicklyto take advantage oftis immediate readiness to offer producls and services,
`especially whele its re:atively slow competitors cominue to develop their preducts and lose ground in
`building thete customerbases
`Syntellect should offer electronic commerce services tarweted to merchants
`— The company’s service hureanalready possesses the core systems and softwae aavessary to provide these functions
`~ Experts projectthat the masket for ecommnetce services will grow exponentially tor several yeas
`~
`Byadding e-commerce services, Synteliect will be able to offer companies were complete Intemel-dased solutions which
`better meet ther needs
`
`£996, Chitine Decising Srategges
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`ut Iekeoniye Camamyaganiona
`
`Competitive Analysis
`Security First Technologies goer
`TECHNOLOGIE FIRST.
`
`(wirw.s-L.com)
`
`(
`
`Company Profile:
`+ Security First (formerlyFive Paces) provides Internet banking solutions including
`soltware sales and outsourcing solutions
`‘The companyhas gained market attention through its Internet bank subsidiary,
`Security First Network Bank,
`
`+
`
`Products:
`
`* Financial Services Applications
`~ Virtual Bank Manager
`~ Virtual Credit Card Manager
`~ Virtual favestment Manager
`~ Virtual Loan Manager
`+ Security Products
`+ Architecture
`
`Implementation
`+
`* Consulting Services
`
`7 1906, Ontine Decising Srategies
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`7
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`eeSLUUOHUU
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`ZeLU00RIL
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`

`f
`
`LECT
`Competitive Analysis
`ut IheCammyaon
`Security First Technologies —suerr
`
`TEERNGLOGIES
`
`RST.
`
`
`
`(wrw.s-L.com)
`
`Product Features:
`
`”
`COINTELLECT
`Competitive Analysis
`Security First Technologies goer
`TECHNOLOGIES§
`IRST
`
`
`(wiw.s-l.com)
`
`Target Market:
`+
`$-L has signaled its intent to dominate the online banking market. The company
`aggressively promotes tiselfat trade shows, in industry publications, and ontine.
`The company’s bank, Security First Network Bank (SFNB), has proven to be a
`usefulsales tool (proving that it works), but some banks have expressed concerns
`over S-1’s ownership ofa competing institution.
`* Currently, the company’soldest domestic client (excluding SFNB) is Huntington
`Banks, a stakeholder in $-1 Corporation. -1 also recently signed an agreement with
`the Australia and NewZealand Banking Group, Ltd. (ANZ) to sell the Virtual
`Financial Manager (hank suite), A total of 13 financial institutions have signed up
`for S-1’s products and services, and 7 ofthese will use the outsourcing option (S-1’s
`service bureau),
`Theservice bureau (outsourcing) option appears to be favored bysmaller
`institutions, whereas larger customers tend to purchase the solution outright. (The
`seven outsourcing clients manage approximately $30 billion of the $230 billion
`under management byall 5-1 clients.)
`
`*
`
`o
`5
`g
`é © 965. Ontiae Dezision Seratemies
`
`Th
`
`Joseph Michaels. Michazl Poiscl aneDelano Ross uiicypals
`
`* Financial Services Applications
`~ Virtual Credit Card Manager
`+
`rovedes credit card customers acess to a realtinne account statewwent
`+
`nterface ts sivaar (obank account information
`
`~ Virtual Investment Manager
`OL vel available, this will gable ftuanctal institutions to add broke:gee services lo diets product Imes
`«Will include investment research and financial analysis. No mention ofveal timeor delayed stock ote
`avalabilry.
`
`~ Virtual Loan Manager
`a
`at yet available, this will enable appheationsfr personal or commercialloans online
`Payments t0 loans car be made between cnltue accounts
`
`+
`
`~ Virtual Net Worth
`
`
`
`+
`
`All components ca(will) by mttegrated so chat cusomers cam viewrotal portiolio ofdebics and credits
`
`~ Bill Payments
`© Contracted through CheckFree, $-E allows online scheduling ofbill pavanerts(a prettystandardapproach’
`
`© 1996, OntineDecising Srraregies
`
`)
`
`Joseph Michaels,Michael Poise! ardDolana Ress. rrtticlnads
`
`2
`ASYNTELLECT
`Security First Technologies
`
`(www.sl.com)
`
`Competitive Analysis
`
`
`
`ZeCRNOLOGTES ARS
`:
`
`wn
`SYNTELLECT
`Security First Technologies
`
`(www.sl.com)
`
`Competitive Analysis
`
`
`
`TECHNOLOGIES SRR
`
`
`Strategic Partnerships:
`+ Unisys
`~ Lnisvs has agreed to recommend S-1 products fo ts systems customers who seek Internet
`solutions,
`fn exchange for this, S-1 is rewarding Unisys with “commissions”for sales
`made through their referrals.
`[t is uncertain whether this partnership has yielded any
`clients for S-1, but the relationship is actively pursued by S-L.
`+ Alltel
`;
`,
`~ Alltel is the preferred service bureau used by 3-1 customers who choose the outsourcing
`option, Alltel also actively promotes S-] products to iis other financial institution clients,
`inciading National Commerce Bancorporation, which recently selected S-] as its Internet
`solution provider.
`.
`‘
`» Visa Interactive
`oan
`.
`ee oo
`~ Visa Interactive markets 8-1's Virtual Iinancia! Manager suite as its {intemet banking
`.
`Co
`Lye
`solution and as a complement to its remote banking and bill payment services. Visa
`°
`- Lo
`a.
`Interactive clams to offer its own solution as well, but ne product literature ts available,
`Security First has agreed to makeits technology compliant with the Access Devise
`Messaging Spocification (ADMS) financial systems standard created by Visa,
`
`a
`
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`Page 1507
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`
`é © 965. Ontiae Dezision Seratemies
`
`Strategic Partnerships:
`» Sun Microsystems
`~ S+1 will develop a version of S-J's Vietual Financial Manager that will tun ina secure
`operating eavironment based o9 Sun's UltraSPARCplatformrunningSolaris. 5-1 will also
`incorporate Java technologyinto its VFMarchitecture, thus enhancing Internet/intrane!
`functionalityand providing universal access to S-L applications across multiple platforms,
`Sun’s global sales, marketing and distr‘bution channels will promote the $-1 solution on
`the Sunplatform as well,
`P
`* CheckFree Corporation
`~ S-1 has an agreement with CheckFree in which Checkl'vee provides back-end bill payment
`processing for S-I's VEMcustomers, and utilizes VFM for their bill pavment services, as
`;
`itt
`it
`Prag ie ¢
`2
`oe
`Saeney fapere VEM 1
`well. Additionally, Checktree ig supposed lo reemarket Seourity First's vEM solution ty
`thelr nancial customers.
`‘The extent to which the dalter occurs is uncertain, piven that
`wags
`. eg oa
`Check#ree has a competing solution of ts own, To dale, S-1 has not gotten any neve
`7
`an
`clients through this partnership,
`
`5 196, OnlineDecisinn Srratesies
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`tl
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`

`on
`SYNTELLECT
`Competitive Analysis
`Security First Technologies goer
`
`
`IRST.
`
`“ECANOLOBIE
`
`(www.sl.com)
`
`Strategic Partnerships:
`* Quintus Corporation
`~ Quintus and S-| have partneted fo create an lnternet call center designed to consolidate
`inquiries reczived through various communication channels, including voice response unit
`and e-mail, and to direct those inquiries to highlytargeted response teams lor efficient
`customer service, Quintus provides expertise ia Web interaction with call centers.
`* Open Banking Consortium (member)
`
`f
`
`LECT
`ut IheCammyaon
`
`(www.s-l.com)
`
`Competitive Analysis
`
`
`
`Strategic Partnerships:
`* Hewlett Packard
`~ $+] uses HP's Virtua!Vault security technology ints VEM product, UPis involved in the
`development ofS-1 products and is essentially a supplier to 8-1. S-E reters clients to HP
`for systemssolutions as an added feature ofthis relationship. HP promotes SFNB and §-1
`Solutions in the retail banking section ofits web site,
`* M&I Data Services
`~ Malis one ofthe banking industry’s leading core processoes, SL has an exclusive
`arrangement wil M&1 whereby M&I will promote only 8-1 Internet banking solutions to
`its customers, Me] is also the service bureauusedfor processing SFNB transactions (a
`fogacy of Cardinal Bancshares’ relationship with M&I),
`" Computer Services, Inc.
`~ Structured similarlyto the Marelationship. Computer Services is a “core processor” of
`banking data andwill market S+[ products to its customers.
`[t will also use 8-1’s service
`burcaufor the front-end processing cf Interact banking applications.
`
`3
`2
`3
`3
`3
`
`eBeLUUOHUL
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`© 1996, OntineDecising Srraregies
`
`B
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`Joseph Michaels,Michael Poise! ardDolana Ress. rrtticlnads
`
`o
`Q
`3
`3
`é © 965. Ontiae Dezision Seratemies
`
`a
`
`Joseph Michaels. Michazl Poiscl aneDelano Ross uiicypals
`
`a
`
`COUNTELLECT
`
`(wirw.s-L.com)
`
`
`Competitive Analysis
`Security First Technologies goer
`(wiw.s-l.com)
`
`IRST.
`
`
`
`TECHNOLOBYE
`
`Pricing:
`* Setup fees: $40,000
`* Per customerfoes: Variable. This fec amount has an inverse relationship with the
`number ofa client bank’s customers,
`
`+
`
`S-f shows a strong willingness to be flexible with pricing within a certain range.
`Each client may have a different contract with S-1, but each contract is designed to
`meet 5-1’s costs and achieve revenue targets.
`
`© 1996, Ontine Decising Srraregies
`
`ii
`
`Joseph Michaels, Michael Poise! ard Dolana Ress. rrtticlnads
`
`geos000HadG
`
`General Observations:
`+
`S-L is probably Syntellect’s most significant competitor in the financial institutions
`mnarkel. Theyhave several advantages over Syntellect al present:
`~ Momentum ~ Security Pirst has been in the market for? years and has attracted Lots of
`media attention toits product offerings, primarily theough SFNB (“the first Internet
`bank”),
`~ Partnerships - $-1's strongrelationships with key partness,particularlythe exclusive
`referral deals with four ofthe seven major “core processors” (Alltel, M&L Computer
`Services, and CheckFree), are important assets to the company. Svntellect must build
`similar relationships in otder to easure full recognition ofits web capabilities.
`~ Prodvet Development - $1 has had a longer time to work onis product and a larger group
`of programmers as well. Syatellect should be able to benefitfrom $-1’s experience,
`however, and this should mitigate this advantage.
`5-L does not appear to be interested in markets other than financial services at
`present. Syatellect’s willingness to enter diverse markets can strengthen its bid to
`enter the e-commerce market and accelerate the Jeaming curve to the point at which
`many ofthe advantages enjoved by 8-1 can be met or overcome.
`
`+
`
`© 965. Ontiae Dezision Seratemies
`
`le
`
`Joseph Michaels. Michazl Poiscl ane Delano Ross uiicypals
`
`Page 1508
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`

`Competitive Analysis
`
`SYNTELLECT
`CaPerieGormanation)
`
`f
`
`ut Iekeoniye Camamyaganiona
`
`CEI Proservices, Inc.
`
`(www.cfipro.com)
`
`BLS
`CFI
`
`Company Profile:
`+ CFI Proservices claims to be the largest provider of PC-based software to the U.S,
`banking industry, with over 5,000 financial institutions using the company’s
`products and services
`+ The company seeks to automaie lending, operations, home banking,and customer
`sales and service for financial institutions
`
`* CFT's products WebPB and JavaPB enable their customers to offer full-service
`interactive solutions
`
`Products:
`
`* Personal Branch (PC banking)
`~ WebPB and JavaPB (Internet banking), LoanPB
`* Encore! Call Center
`
`* ACH Manager(processesfile transfers between corporate customers, the Fed, and
`other ACH operators)
`* StarGate (middlewareproduct)
`* Self-Service Terminal (kiosk software)
`© 1996, Ontine Decising Srraregies
`
`iH
`
`Joseph Michaels, Michael Poise! ard Dolana Ress. rrtticlnads
`
`Competitive Analysis
`
`
`CFI
`
`PROSERVICES, thee,
`
`CFI Proservices,Inc,
`
`(www.cfiprocom)
`
`Product Features:
`
`* Personal Branch
`
`~ Account balances
`
`Account histories
`
`~ unds transfers
`
`~ Bil payment
`~ Downloadofhistory mformalionto personal Iinance sultware Quicken, Money, and
`Managing Your Money
`— Payroll distribution information
`~ Intrabank transfers
`
`~ Tax information
`
`— Institution news and information
`
`seosn0eHaG
`
`© 965. Ontiae Dezision Seratemies
`
`if
`
`Joseph Michaels. Michazl Poiscl ane Delano Ross uiicypals
`
`f
`
`ut Iekeoniye Camamyaganiona
`
`CEI Proservices, Inc.
`
`(www.cfipro.com)
`
`Product Features:
`
`© Encore! Cal] Center
`
`~ Customer Service Module
`
`+
`
`Provides vansaction deta, statement cetatl stopfonction, and warming function
`
`~ Information Reference Module
`
`+
`
`Provides check orders, customer contact history, mailings, branch directory, balleting, insatutioa policies and
`procedures, product informatios, rate infortaatten, what-ifcalculations, fax and phone referrals, and intet-institutton
`telephone directory
`~ Telemarketing Sales Module
`+
`Provides custemer profiles, account opening, lead tacking, mail, product intonation, coupn processing, call
`‘ollow-up, fax and phone referral, account openine, document weparalion, call Listory, customer damuseaphic and
`psvehographie information, product recommendations, rate information, and whatif calculabons
`
`~ Letter Pulfillment Module
`+
`Srowdes‘etter requesis, letter teusplates, Jetterprinting, data merge, taformation about co:lateral maerials, and
`“alttilmest reports
`~ Reporting Module
`+
`Provedes standard reports andl ad-hoc reports
`
`Competitive Analysis
`
`OESDs aan
`
`CSYNTELLECT
`CFI Proservices,Inc,
`
`(www.cfiprocom)
`
`Competitive Analysis
`
`PROSERVICES, thee,
`
`Target Markets:
`+ CFI mainlytargets the credit unions and community banks, which typically prefer
`outsourcing over outright purchasefor technologysolutions
`Strategic Partnerships:
`* Hewlett Packard
`
`~ HP fists CFLas a “channel partner” under HP’s virtual bank manager product offering,
`implying thal the companies have a mojual reseller agreement forcach other's services
`* Credit ution core processors - Aftech, Automated Systems, CU Processing, Fiserv
`Savings & Community Bank Group Southwest Region, Fiserv Galaxy, Fifech,
`Member Data Services, Share One, Summit Information Systems, and USERS
`~ CFT has developed interfaces for the host processing systems ofthese companies, all of
`which serve credit unions
`
`~ CFL and these companies also have co-marketing agreements in place for CT's Personal
`Branch prodact
`
`© 1996, Ontine Decising Srraregies
`
`19
`
`Joseph Michaels, Michael Poise! ard Dolana Ress. rrtticlnads
`
`
`
`coss000NdG © 965. Ontiae Dezision Seratemies
`
`mn
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`Joseph Michaels. Michazl Poiscl ane Delano Ross uiicypals
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`Page 1509
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`ZBELUUORUL
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`GESLUGOEUL
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`Page 1509
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`

`
`ELLECT
`season.
`CFI Proservices, Inc.
`
`8
`
`(www.cfipro.com)
`
`Competitive Analysis
`”
`f
`i|
`
`erat
`
`
`
`
`on
`SYNTELLECT
`eis
`Digital Insight
`
`’
`
`(www.diginsite,com)
`
`Competitive Analysis
`
`
`
`General Observations:
`
`Products:
`
`+ CFI has focused on small financial tnstitutions and credit unions, Note: There is
`+ AXIS Internet Access Account System (Home Banking)
`concern in the market over whethertheir solution is scaleable to larger settings
`© Web services
`* CFT’s Personal Branch software has wide acceptance, which gives the company
`
`
`
`
`
`
`SORE SONATETasWINE SIVESTECOMPANYDIGG aepTANCE, WUC Product Features:
`plentyof opportunityto transition the financial institutions using PB over to CF]’s
`newInternet-based products
`+ AXISInternet Access Account System (Home Banking)
`« CF’s clever strategy: core processors ultimately resell CFT’s solution
`~ AccountPlanes
`+ Syntellect should consider mirroring CF!"s partner/reseller strategy
`~counthistor
`
`~ Funds transfers
`
`Download ofhistory information to Quicken
`~ Bil: Pavinent System
`~ Intemet Stack Quotes
`+ Web services
`
`~ Site development, maintenance, and hasting
`
`n
`
`Joseph Michaels. Michazl Poiscl ane Delano Ross uiicypals
`
`g829 g
`
`g © 965. Ontiae Dezision Seratemies
`
`© 1996, Ontine Decising Srraregies
`
`2
`
`Joseph Michaels, Michael Poise! ard Dolana Ress. rrtticlnads
`
`Farieeect
`Digital Insight
`(www.diginsite.com)
`
`Competitive Analysis
`
`
`
`SYNTELLECT
`Digital Insight
`(www.diginsite.com)
`
`Competitive Analysis
`
`
`
`Target Market:
`+ Digital Insight has 81 clients, 27 ofwhomuse the company’s AXIS home banking
`product. Credit unions comprise almost all ofthe clients, however the companyis
`alsoclearly targetingthe broader financial insitutions market
`Strategic Partners:
`* Travelers Express Company
`— Provides the bill paying service used to process Digital Insight’s payment transactions
` Syunitar Systems
`~ This top-20-rauked core processorfor credit unions co-markels Digital Insight’s solution
`with ils own home banking product, apparently as part ofa licensing arrangement similar
`to those used by SecurityFirst Technologies
`
`*
`
`General Observations:
`+ Digital {nsight gained market acceptance bycreating 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 Internet-related services
`* For example. the credit unions no longer simplyuse the Internet as a marketing
`_
`tee
`“ee
`channel: they are begtnning to use itas adisiribution channelfor interactive services
`;
`— This trend suggests that, as theybecome comtortable with the technology, tisancial
`institutions will accent the evolution of interactive products
`‘These observations support Syntellect’s decisionto position its [WR product as the
`next step in interactive banking services forils curtent customer base
`
`+
`
`© 1996, Ontine Decising Srraregies
`
`8
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`Joseph Michaels, Michael Poise! ard Dolana Ress. rrtticlnads
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`
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`ro.s000NTG
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`© 965. Ontiae Dezision Seratemies
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`2a
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`f
`
`LECT
`ut IheCammyaon
`CheckFree Corporation
`(www.checkfree,com)
`
`Competitive Analysis
`
`en
`SSYNTELLECT
`Ceatein AP LOTUS
`CheckFree Corporation
`(www.checkfree.com)
`
`Competitive Analysis
`
`Company Profile
`+ A.$678 million companywhich 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 Intuit Services Corporation -- which enable CheckFree fo handle the
`outsourcing of bill payments for 850 financial institutions inclading Wells Fargo,
`PNC, Chase, NationsBank, Bank America, and Bank One
`* Two CheckFree service bureaus offer outsourcing services similar to those available
`through Svntellect
`~ Using real-iime network links and working offstrip files, these centers located in Chicago
`and Austin offer banksthe abilityta outsource keyonline banking functions such as
`account balance information, fund transfer, ete,
`
`Products:
`
`* CheckFree BankStreet Web
`
`* CheckFree E-Bill
`
`* Stock Quote Service
`
`Product Features:
`
`* CheckFree BankStreet Web
`
`~ thin-chent web banking software originally created bysoftware companyServantis
`~ can be customized by banks fo feature bank's own brand name, logo,ete.
`
`gUL.U0OHUU
`
`20L20008IU
`
`© 1996, Ontine Decising Srraregies
`
`Joseph Michaels, Michael Poise! ard Dolana Ress. rrtticlnads
`
`a
`
`-SYNTELLECT
`oanet ween Cae
`Nien
`CheckFree Corporation
`(www.checkfree,com)
`
`Product Features:
`
`© CheckFree E-Bill
`
`~ Service which allows consumers to receive and paybills electronically
`Works directlythrough CheckFree on the wel
`~ Js not capable ofhandling all payees, only companies signed up with CheckFree
`* Stock Quote Service
`~ The company’s purchase of software companySecurity APL added the popular stock
`quote web site PAWWS.com to CheckFree’s repertoire, giving CheckFree new
`competencies in Interne'-based financial services such as stock trading, portfolio
`management, companyresearch, informationfor investment advisors, etc.
`
`& 1996, Onl