banking industry

10 technology companies to watch

Jim Kim — Fri, 06 Jun 2008 08:20:49 -0400

The financial services industry has long been seen as a test bed for new technologies. The comparative advantages of better technology are quantifiable. The team with the best tech makes the most money. And that's the game. But we sometimes forget that need for tech extends beyond trading technologies, which makes Bank Technology News' list of 10 companies to watch more interesting. mFoundry, a mobile banking company, leads the list. Enterprise security firm Bit9 comes in second for its whitelisting application. Others include Mint--an online financial services provider with an original retail approach; Digital Check, for its remote deposit capture technology aimed at small businesses; and Positive Networks, for its phone-based authentication. Looking at these companies, you get a feel for what the retail banking industry is all about these days. Vendors, you want to be on this list.

For more:
- here's the list

Does Citigroup's success boil down to its IT savvy?

Mon, 28 Apr 2008 06:59:57 -0400

Vikram Pandit has bitten off a huge challenge. He has emphatically rejected calls to spin out various parts of the sprawling Citigroup empire. Thus he has assumed a huge challenge to better stitch the empire together. In the end, it likely will come down to the bank's information technology savvy. How else can you do it? Pandit has shown a penchant for reaching out to others. Over at FierceFinance, we've noted that Citigroup has sought advice from Hewlett-Packard, which similarly rejected calls not too long ago to spin out its PC business, as reported by the Financial Times. Much of the talks have been on IT issues. Pandit also has sought advice from ex-Citigroup CEO John Reed, who's a big proponent of the idea that IT can make it all work. It will be interesting to see how all this plays out from a systems point of view. The clock is ticking.

For more on HP and Citigroup:
- here's the Financial Times article

Bank patents war heats up

Mon, 28 Apr 2008 06:59:54 -0400

Software and biotech--and increasingly financial services--companies know what the patent wars are all about. Increasingly, in this era of low-cost production, the higher-level value add in any business boils down to the intangibles, the knowledge. So you have to patent the hell out of everything you do. And when it comes time to really go to war with another company, you search your patents and sue your competitor for all kinds of infringement, real or not. IBM was known for this. Banks these days have no choice but to play that game (as they should). Some will argue this is a gross misapplication of the patent system, and that processes should not be patented. These are old questions to be sure. But banks really don't have a say. There is too much at stake in terms of royalties and competitive advantage.

For more:
- here's an article from Bank Systems & Technology

Mobile banking to soar?

Mon, 21 Apr 2008 06:59:58 -0400

After some fits and starts and lots of debate, the banking industry finally seems willing to bet on mobile applications. The stars seem to be aligning. The recent FCC wireless auction was seen as victory for banks, mainly because it will help them deploy mobile applications with less interference from telcos. We can certainly expect more apps in financial information, transfers, payments and account management. But is Juniper Research getting carried away? Information Week reports that the firm predicts mobile transactions will rise from 2.7 billion in 2007 to 37 billion by 2011. Such estimates are notoriously tricky. (I recall a few back in the day that predicted OS/2 would hold its own against Windows.) Interestingly, the report found that much of the growth will come from China other Asian countries.

For more:
- here's the Information Week article
- here's an article from Bank Technology News on the wireless auction