Digital Insight and Metavante Expand Strategic Partnership
13 September 2006 - 11:00PM
PR Newswire (US)
Agreements Represent Significant New Distribution Channels for Both
Companies' Products and Services CALABASAS, Calif. and MILWAUKEE,
Sept. 13 /PRNewswire-FirstCall/ -- Digital Insight Corp.
(NASDAQ:DGIN) (http://www.digitalinsight.com/), the leading online
banking provider, and Metavante Corporation
(http://www.metavante.com/), the banking and payments technology
subsidiary of Marshall & Ilsley Corporation (NYSE:MI), today
announced three agreements that expand their strategic
relationship. By combining these new arrangements with existing
agreements, each company will be able to capitalize on
opportunities to cross-sell existing products and services through
new distribution channels, while providing economic advantages for
shared clients. Real-Time Payment Capabilities Agreement Under the
terms of one new agreement, the Digital Insight-Metavante strategic
partnership will expand to include NYCE(R) Network real-time
payments technology that gives online banking users of Digital
Insight client financial institutions the ability to securely
conduct inter-institution account-to-account (A2A) funds transfers.
The NYCE-enabled functionality greatly expands Digital Insight's
payment capabilities and provides online banking users faster and
more flexible funds transfer and person-to-person payment options.
Each transfer is designed to use only the recipient's ATM/debit
card number -- never requiring the receiver's PIN or expiration
date. All financial institutions that have Digital Insight's Funds
Transfer product will be able to offer this service to end users.
NYCE is a U.S. debit card payments network and a Metavante
division. Market analysis from Celent Communications reports that
real-time A2A transfers are anticipated to be very valuable to
financial institutions because they provide high value to senders
and recipients, as well as risk management and cost efficiencies to
financial institutions.(1) In addition, the capability can help
position the bank or credit union as the primary financial
transaction hub for customers seeking the added convenience and
flexibility of making instant electronic transfers and payments.
Stored-Value Gift Cards Agreement In addition, Digital Insight and
Metavante entered into a new agreement that will provide Digital
Insight client financial institutions the ability to resell or
directly issue stored-value gift cards to their customers through
Digital Insight's online banking interface or at their branch.
Stored-value gift cards are general use cards with a prepaid dollar
value. The cards offer consumers additional purchasing flexibility
by offering enhanced speed and convenience over gift certificates,
as well as improved security over cash. The Metavante-processed
gift cards can be custom-branded with the financial institution's
name, generate revenue opportunities for the bank or credit union
and be used anywhere the VISA(R) logo appears. According to Aite
Group, the gift card market will expand rapidly from $4.2 billion
in 2004 to $27 billion in 2009.(2) In addition, Tower Group states
"gift cards, which are bank-issued, offer increased value to the
consumer," and "the potential market for open-system gift cards
makes the bank a ready-made distribution channel."(3) Reseller and
Third-Party Partner Agreement Digital Insight and Metavante also
formally announced a third long-term agreement that was established
in June 2005, naming Digital Insight's consumer Internet Banking
and Business Banking solutions as the exclusive third-party
products resold to financial institution clients that use
Bankway(TM) software -- Metavante's licensed core processing
solution. In addition, Digital Insight's loan origination system,
DeskTopLender Premium, was named a recommended solution for Bankway
clients. Since the agreement was established, more than 20
Bankway-client financial institutions have contracted for Internet
banking services offered by Digital Insight. In 2005, Digital
Insight and Metavante had renewed a long-term electronic bill
presentment and payment services agreement that expanded marketing
initiatives to promote increased adoption and usage of Metavante's
online bill presentment and payment products among Digital
Insight's clients. Digital Insight currently has online bill
payment agreements with two of the leading providers. "While
Metavante continually enhances and evolves its payment offerings to
help financial institutions create successful payments programs,
we're simultaneously on the lookout for additional channels to
reach and assist as many financial institutions as possible," said
Frank D'Angelo, president, Metavante Payment Solutions Group.
"Partnership-focused growth initiatives, like ones that expand the
reach of NYCE A2A and Metavante gift card solutions, allow us to
take advantage of growth opportunities around those technologies."
Digital Insight is the largest outsourced provider of Internet
banking services in the United States, serving more than 1,750
financial institutions and approximately 6.8 million consumer end
users and 108,000 business end users. The company's ability to
establish and enhance strategic partnerships with leading
technology companies, such as Metavante, continues to deliver the
on-demand products and services that help Digital Insight clients
achieve growth. "Our agreements with Metavante and NYCE are the
latest examples of a highly successful, long-standing partnership
that has been delivering great results since 1999," said Digital
Insight Chairman, President and CEO Jeff Stiefler. "In addition to
opening a rich distribution channel for Digital Insight and
Metavante products and services, the partnership promotes top-line
revenue growth opportunities for both companies." (1)
Account-to-Account Transfers, Celent Communications, October 2002,
p.4 (2) Prepaid Cards: A Market Overview, Aite Group, LLC,
September 2005, p. 12. (3) Prepaid: Bankcard's Next Growth Engine?,
TowerGroup, Inc., November 2003, p. 9 About Metavante Metavante(R)
Corporation delivers banking and payments technologies to financial
services firms and businesses worldwide. Metavante products and
services drive account processing for deposit, loan and trust
systems, image-based and conventional check processing, electronic
funds transfer, consumer health care payments, and electronic
presentment and payment. Headquartered in Milwaukee, Metavante
(http://www.metavante.com/) is wholly owned by Marshall &
Ilsley Corporation (NYSE:MI). Metavante and NYCE are registered
trademarks of Metavante Corporation. About Digital Insight Digital
Insight(R) Corporation is the leading online banking provider for
financial institutions. Through its comprehensive portfolio of
Internet-based financial products and services built upon the
company's unique architecture, Digital Insight enables banks and
credit unions to become the trusted transaction hub for their
retail and commercial customers. Digital Insight offers consumer
and business Internet banking, online lending, electronic bill
payment and presentment, check imaging, account-to-account
transfers, website development and hosting and marketing programs
designed to help increase online banking end user growth and more.
Each Digital Insight product and service reinforces the strength of
its financial institution clients. Safe Harbor Statement under the
Private Litigation Reform Act of 1995 This release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements
regarding the future growth potential of the relationship between
Digital Insight and Metavante, and the ability to promote higher
product adoption and improve business results. Such statements are
based on management's current expectations. Because of various
risks and uncertainties, including unrealized expectations for
growth of the relationship between Digital Insight and Metavante,
unrealized expectations for client and end user adoption, pricing
changes, and longer-than-anticipated product and interface
implementation schedules, actual strategies and results in future
periods may differ materially from those currently expected.
Additional discussion of factors affecting these forward-looking
statements is contained under the caption "Risk Factors" in Digital
Insight's most recent Annual Report on Form 10-K and Quarterly
Report on Form 10-Q filed with the Securities and Exchange
Commission. Digital Insight undertakes no obligation to update
publicly any forward-looking statements. DATASOURCE: Digital
Insight Corp.; Metavante Corporation CONTACT: Tobin Lee, Corporate
Communications, +1-818-878-6048, , or Erik Randerson, Investor
Relations, +1-818-878-6615, , both of Digital Insight Corporation;
or Sam Baumgarten, Public Relations, +1-678-533-4861, , or Chip
Swearngan, Investor Relations, +1-414-357-3688, , both of Metavante
Corporation Web site: http://www.digitalinsight.com/
http://www.metavante.com/
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