EDS introduced Integrated Payment Services yesterday, a comprehensive suite of services combining traditional and electronic billing capabilities. IPS is the first comprehensive package of its kind, giving companies a single source to control the complexities and manage the movement of paper bills and payments to electronic business.The first IPS offering will be: ‘Billing and Receivable Services’. Future IPS offerings will target point-of-purchase transactions and disbursements later this year. Available features of ‘Billing and Receivable Services’ include: Interactive Billing Services; EDS*Pay; Interactive EDI Services; Financial EDI Services; EDS ACH Services; Remittance Processing; EDS Statement Rendering Services; and EDS Remittance Information Consolidation Services.


Another Exclusive

First USA’s aggressive push to lock up exclusive Internet marketing deals bagged another big one yesterday. CDnow signed a multi-year, multi-million dollar agreement with First USA to give First USA the right as the exclusive credit card issuer on CDnow. Under the agreement, First USA will promote its credit card products and services on CDnow through integrated placements and sponsorships, including banner ads, buttons, text links and special offers that take CDnow customers to a First USA marketing page where they can apply for credit cards. If the agreement runs its full term, CDnow could potentially generate in excess of $8 million in revenue. CDnow offers approximately 500,000 music related items via the Internet.


VeriSmart ActivCard

Hewlett-Packard’s VeriFone division announced an agreement Tuesday under which ‘ActivCard’, a provider of strong authentication solutions, will supply its ‘ActivReader’ product to serve as a next-generation smart-card reader compatible with VeriFone’s ‘VeriSmart’ server software. ‘ActivReader’ is a portable, handheld smart-card reader. When used with the ‘VeriSmart’ server software system, will provide VeriFone customers with an appliance that allows e-services to be delivered directly to consumers virtually anywhere.’VeriSmart’ customers can already download electronic cash to their smart-cards through VeriFone’s ‘Personal ATM’ appliance. The ‘ActivReader’ device allows for a secure channel to conduct secure finance-related applications through the VeriSmart system such as electronic cash schemes, including VISA Cash, Mondex or Proton, but also future applications such as frequent-shopper loyalty programs, bill payment, portfolio management and directory services.


Wireless Golf Classic

The 1999 BellSouth Classic, a major stop on the PGA Tour, is going wireless with solutions from BellSouth Wireless Data. One wireless solution will allow vendors to make credit card transactions from anywhere along the golf course, while another solution will keep the media connected with the latest tournament information.

BellSouth Wireless Data, a subsidiary of BellSouth Corp. and a leading provider of wireless data communications solutions, is outfitting course concession stands with wireless credit card terminals for fast and easy transactions. The company is also displaying wireless credit card terminals and the BellSouth Interactive Paging(SM) Service at the event’s Product Pavilion. Key sports writers covering the event, which takes place March 29 to April 4 — Tournament Players Club at Sugarloaf in Duluth, GA, will also use the Interactive Paging Service to get the latest tournament news.

“The BellSouth Classic is a perfect venue to illustrate how wireless data is moving into the mainstream and touching peoples’ lives in new ways every day,” said William F. Lenahan, president and CEO of Woodbridge, N.J.-based BellSouth Wireless Data. “We are proud to be taking part in this prestigious event and to have our advanced wireless data communications solutions help the concessionaires and sports writers stay wirelessly connected, no matter where they are on the golf course.”

Fans attending the BellSouth Classic won’t have to carry cash to purchase food items at concession stands placed along the Sugarloaf golf course. BellSouth Wireless Data and Martin Howe Inc., an integrated provider of transaction processing services and wholly owned subsidiary of NOVA Corporation (NYSE: NIS), have outfitted concession stands with Lipman USA Inc., wireless credit card terminals. These wireless terminals give concessionaires the ability to process credit card transactions without having to depend on the availability of phone lines or dial-up connections. The wireless credit card terminals give fans the freedom to use their credit cards at concession stands everywhere . . . from the clubhouse to the greens.

Each terminal is equipped with a wireless modem, allowing for rapid transmission over the nationwide BellSouth Intelligent Wireless Network(SM). Once a credit card is swiped, terminals transmit the data wirelessly via the BellSouth Intelligent Wireless Network to an authorization center where information is received, processed and broadcast back to the terminal. The whole transaction takes less than ten seconds.

“At a major event such as the BellSouth Classic, it is important to be equipped with the latest technology to ensure convenience and efficiency for spectators and vendors alike,” said David Kaplan, executive director of the BellSouth Classic. “Having BellSouth Wireless Data’s cutting-edge, wireless solutions in place help us operate more smoothly.”

BellSouth Classic spectators will also sample the nation’s premier interactive paging service, the BellSouth Interactive Paging Service, at the event’s Product Pavilion. There will be demonstrations of the Interactive Paging Service as well as the opportunity for visitors to send e-mails to colleagues, friends or family via the service.

Reporters covering this year’s BellSouth Classic will stay wirelessly connected throughout the event with the BellSouth Interactive Paging Service. BellSouth Wireless Data is providing key sports reporters with the Interactive Paging Service. Reporters will constantly be updated by BellSouth with breaking tournament news and player information wherever they are on the course via the two-way device.

Introduced in September 1998, the service offers people on the go the ability to initiate and respond to messages in seconds rather than minutes via Internet e-mail and other pagers, and send messages to fax machines and telephones. Interactive paging features the RIM Inter@ctive(TM) Pager 950, a unique wearable, hand-held device with a full keyboard that uses an Intel386(TM) processor. The BellSouth interactive Paging Service was a winner of the prestigious 1999 Mobility Award from Mobile Insights as the top software/service in the Wireless category.

The 72-hole BellSouth Classic has been a fixture on the PGA Tour since 1967 and features many of the greatest names on the tour. For the latest tournament information or to purchase tickets, fans can go to the official BellSouth Classic web site at: .

About NOVA Corporation

NOVA Corporation (“NOVA”), headquartered in Atlanta, Georgia, manages and transports payment and other business information on behalf of retailers, community banks and financial institutions. NOVA specializes in providing integrated credit and debit card payment and information processing services, related software application products and value added services to more than 450,000 merchants nationwide and processes more than $50 billion in credit card volume. NOVA merchant customers typically include small- to medium-sized merchants that require a full spectrum of processing services. Web site address:

Martin Howe Associates is a subsidiary of NOVA Corporation, and specializes in processing credit card payments via Wireless Point of Sale terminals. Every major sports league, and many entertainment complexes around the nation, use Martin Howe Associates’ wireless solutions. Having the flexibility and creativity to find quick and permanent solutions has been the MHA trademark. Web site address:

About Lipman USA Inc.

Established in 1974, Lipman Electronic Engineering Ltd. is a high technology publicly held company whose shares are traded on the Tel-Aviv stock exchange. The company’s objective is to keep ahead of the competition through innovative action. The company’s business philosophy is to provide the customer with the most reliable, technologically advanced and most cost-effective product available. The company is involved in the development, production and marketing of a broad line of sophisticated, microprocessor-based electronic equipment and computerized systems for advanced applications, incorporating optical imaging and scanning technologies. Following the tradition of over two decades of excellence in state-of-the-art products, the company continues to expand as a pace-setter in advanced communication and embedded system technologies. Web site address:

About BellSouth Wireless Data BellSouth Wireless Data, L.P., headquartered in Woodbridge, N.J., is an expert in providing proven wireless data communications solutions that eliminate the barriers between critical information and mobile users. The company, a winner of the prestigious Sears Innovation Source of the Year and Partners in Progress awards for 1997, delivers a competitive advantage and increases personal productivity for aggressive, innovative companies and individuals leveraging communications technologies to meet their strategic goals. BellSouth Wireless Data operates its wireless data service throughout the United States, covering more than 93 percent of the urban business population located in 266 metropolitan areas with a total population of 200 million people.

BellSouth Wireless Data is a subsidiary of BellSouth Corporation, which provides telecommunications, wireless communications, cable and digital TV, directory advertising and publishing, and Internet and data services to nearly 33 million customers in 19 countries worldwide. E-mail: bellsouthwd.info@bellsouthwd.com . Web site address: .


Oil Card Falcon

Chevron Corp. has decided to install HNC Financial Solutions’ ‘Falcon’ payment card fraud detection system to protect Chevron’s 7 million plus portfolio from fraud losses. San Diego-based HNC Financial Solutions says it will deliver a version of ‘Falcon’ that is specially configured to detect the kind of fraud that is typical on private label oil cards. Chevron’s ‘Falcon’ will employ an oil-card-specific neural network. Falcon is used by over 600 credit card issuers worldwide.


Citi Acquisition Update

As part of its strategy to be the world’s leading full service provider of consumer financial services, Citigroup Tuesday announced three separate acquisitions designed to strengthen its position in the area of consumer lending.

— Citibank agreed to acquire Mellon Bank’s credit card business, including a portfolio of $1.9 billion in credit card receivables.

— Commercial Credit, as previously announced, has signed an agreement to acquire a $558 million loan portfolio and 128 consumer finance branch offices from Associates First Capital Corporation.

— Citibank completed the acquisition of Santiago, Chile-based Financiero Atlas, a consumer finance company with 65 branches throughout Chile and $460 million in assets.

Separately, Citigroup also completed the sale of its Newbridge Securities unit, a correspondent securities business, to Donaldson, Lufkin & Jenrette. Terms of the three acquisitions, as well as the divestiture, were not disclosed. Citibank’s purchase of Financiero Atlas was completed earlier this month. Citigroup expects to complete the other transactions by the end of the first quarter, pending regulatory approvals.

“Our announcements today are in keeping with our overall business goal – to be the leader in providing high-quality, end-to-end financial services for consumers around the world,” explained William I. Campbell, Co-CEO for Citigroup’s Consumer Business. “With this series of transactions, Citigroup is better-positioned in several of our core consumer businesses, including credit cards and personal, or consumer, lending.”

Robert I. Lipp, also Co-CEO for Citigroup’s Consumer Business, noted that, “Collectively, these acquisitions will enable Citigroup to achieve greater economies of scale within our broad consumer business, and enhance our financial product offerings and service capabilities for customers. We’re in the process of refocusing our resources on businesses in which we are a clear leader and those that hold tremendous opportunity for growth and away from non-strategic ventures. This will give us a business mix that better addresses the overall corporate strategy, and offers the best opportunity for cross-selling within the organization.”

Citigroup expects to realize the following benefits from the acquisitions announced today:

— The $1.9 billion Mellon Bank credit card portfolio will further strengthen Citibank’s position as the global leader in consumer credit cards. In the U.S. credit cards in circulation will now number 70 million, with worldwide credit and charge cards totaling 96 million. The acquisition includes the establishment of an agent bank relationship to market credit cards under the Mellon and Dreyfus brands. Also, Citibank’s affinity card unit will manage and market an affinity card program designed especially for members of the American Dental Association.

— By acquiring 128 offices of The Associates, as well as a substantial loan portfolio, Commercial Credit significantly expands its on-the-ground lending presence to more than 1,100 offices throughout the U.S. Commercial Credit currently provides personal loans and home equity products to more than 1 million customers through more than 1,000 offices in 45 states.

— Citibank’s purchase of Financiero Atlas raises its share of the consumer lending market in Chile to 15 percent. This consumer lending business will be jointly managed by Citibank Chile and Commercial Credit and embodies the strategic goal to develop consumer finance operations in selected markets worldwide.

Citigroup is the world’s most global financial services organization. Citigroup’s consumer businesses cover a broad range of financial services in 57 countries — retail and private banking, credit and charge cards, mortgage lending, consumer lending, personal financial planning, personal insurance and investment brokerage and counseling. These services are marketed through Citibank, Commercial Credit, Primerica, Travelers Life & Annuity and Travelers Property Casualty. Together, these consumer businesses earned $2.8 billion in 1998, representing 58 percent of Citigroup’s core business income.

Today Citigroup serves over 100 million customers – including consumers, businesses, governments and financial institutions – in 100 countries and territories.


FU Picks Vignette

Vignette Corporation , a leader in Internet Relationship Management solutions, today announced that First Union National Bank has selected Vignette Corporation’s StoryServer 4 as the platform for the company’s Web business. First Union, a leading provider of financial services to more than 16 million retail and corporate customers throughout the nation, selected StoryServer software because of its scalable, extensible, open architecture and rapid time to deployment. First Union’s online banking site can be found at and will be implementing StoryServer by the end of the second quarter 1999. With the signing of First Union National Bank, four of the top twelve U.S. banks are now Vignette customers.

First Union initially plans to use StoryServer 4 as a key piece in their Internet infrastructure. Vignette’s solution will drive the organization’s Web-based business channels to attract and retain First Union prospects and customers. This will enable them to access a wide range of business and personal financial services and content tailored to their specific needs in a highly personalized and dynamic way.

“We look forward to using Vignette solutions as a major component in our overall strategic initiative to redesign and enhance our online presence,” said Parrish Arturi, vice president of Channel Development at First Union National Bank. “More and more of our online customers are looking to the Internet for financial solutions, and a strong corporate Web presence is critical to our success. We believe Vignette’s enterprise (IRM) solutions will enable us to create dynamic, personalized and relevant experiences for our customers and visitors. Using StoryServer our online offerings will continue to expand in ways that meet our customers’ changing needs.”

“Vignette is honored that First Union, one of the top financial institutions in the world, has chosen StoryServer to help build its online business,” said Greg Peters, president and CEO of Vignette. “The financial services world has led the charge to provide one-stop-shopping for users. With another bank just a click away, this type of full online service is critical. We are committed to helping First Union build an online business to attract and retain loyal customers.”

StoryServer is the premier Web application platform for managing online customer relationships. It addresses the unique requirements of enterprise applications, which focus on building lasting customer relationships rather than simply facilitating transactions. StoryServer delivers four essential (IRM) functions: lifecycle personalization, open profiling services, advanced content management and decision support capabilities. Targeted to companies that use the Web as a business channel, StoryServer is the only Internet application platform built to develop loyalty and satisfaction throughout the customer lifecycle.

First Union Corp.

First Union Corporation is a leading provider of financial services to more than 16 million retail and commercial customers throughout the East Coast and the nation. First Union is the nation’s sixth largest bank holding company, based on assets of $237 billion as of December 31, 1998. The company operates full-service banking offices in twelve states and Washington, D.C.

Vignette Corporation

Vignette Corporation, the leader in the category of Internet Relationship Management software products and services, provides enterprise solutions for companies that are building businesses online. Vignette’s products and services, which include StoryServer(TM) 4 software, Vignette Syndication Server(TM) (VSS(TM)) Software and its recently announced Vignette Development Center(TM) (VDC(TM)) software are designed to allow businesses to use the Web as a new channel for customer acquisition and retention. More than 190 companies, including National Semiconductor, PNC Bank, Bank One, CNET, The Electronic Newsstand, Nortel Networks, and Ziff-Davis’ ZDNet, use StoryServer to serve more than a combined 30 million page views per day. Vignette’s numerous industry awards include the Crossroads A-list; New Media Hyper Award; CNET’s 1998 Builder.com Product Award; Red Herring Magazine’s Best Overall Private Company in 1998, 1998 Best Product Award for StoryServer; Upside Magazine’s Hot Private Company in the Net Infrastructure Category; and the NewMedia Magazine 500, Hottest Companies in Digital Media Award. The Vignette Partner program is comprised of three membership categories: Consulting Partner, Solution Provider and Technology Partner. Each category offers members a customized set of benefits designed to increase partner profits and grow Vignette’s share of the (IRM) market. Headquartered in Austin, Texas, Vignette Corporation also has offices located throughout Europe and in Australia and can be found on the World Wide Web at .


Destiny CEO Honored

Destiny Software Corporation, a leading provider of Internet financial services systems, announced last week that Lucinda Duncalfe was honored as one of the 40 most influential young business leaders in the Philadelphia area. Destiny Software’s chief executive received her award at a gala reception last week sponsored by the Philadelphia Business Journal.

Ms. Duncalfe, 36, was chosen for her efforts as chief executive of fast-growing Destiny Software. Destiny grew by over 400% in 1998, and recently signed two new top 10 banking institutions. Destiny also recently added Alex “Pete” Hart, the former Chief Executive of MasterCard and Advanta, to its Board of Directors.

“I really appreciate the honor of joining such a prestigious group. This award is particularly gratifying as it comes in the midst of the greatest momentum we’ve ever had at Destiny,” commented Ms. Duncalfe. “The Philadelphia community has been instrumental to our success, providing tremendous support, access to capital and a wealth of technical talent. I look forward to celebrating tonight with the finest young leaders from our region.”

The “40 Under 40” awards honor Philadelphia’s most talented young professionals. The award judges seek those individuals that shape the direction of the Philadelphia community in all phases of life including business, culture, social service, labor and government service.

Stephen Amsterdam, a Destiny Software Board Member, will also be honored at this year’s awards reception. Mr. Amsterdam is a founding principal of Pennsylvania Early Stage Partners, a $50 million venture capital fund associated with Safeguard Scientifics, Inc. (NYSE: SFE). Pennsylvania Early Stage Partners became an investor in Destiny Software in 1998.

Destiny Software is a leading provider of Internet systems to the world’s premier financial institutions. The company’s software and consulting services enable these organizations to build sophisticated Internet systems, rapidly and reliably. Destiny’s fixed price, fixed time project methodology, backed by a track record of success, eliminates the risks in implementing complex Internet solutions. Destiny’s clients include Bank of America, The Northern Trust Company, GE Capital and First USA (a Bank One subsidiary). The company’s web site is located at [www.destinysoftware.com][1].

[1]: http://www.destinysoftware.com


Brittain’s New Reports

Y2K Financial Panic Monitors

(a series of three consumer tracking studies)

Brittain Associates. . .providing marketing research and strategic marketing consulting to the financial services industry


By now every financial institution in the world is preparing for the Y2K computer problem. Plans have been made to upgrade computers and software and correct the many glitches that this bug has created. But from the consumer’s viewpoint, that may not be enough. Many organizations have advocated hoarding cash and supplies, liquidating investments and closing bank accounts to protect consumers’ assets.

How much do consumers really know about this problem and what steps are they planning to take to protect themselves? Besides preparing systems for Y2K, what should financial institutions do to ease their customers’ concerns about their money?

Because this situation is unique and there is no historical data to tell us what to expect, financial institutions must arm themselves with the information that will help them prepare. Brittain Associates’ series of consumer tracking studies, Y2K Financial Panic Monitors, will provide financial institutions with the information they need to make decisions that will protect their firms and the consumers they serve. And, by collecting the data quarterly, we can monitor how consumers’ fears and opinions change as the end of the year approaches.

Report Information Highlights

What are consumers most fearful about regarding Y2K?

What are their plans regarding those fears?

Specifically, what are their fears about and what are their plans for:

money in checking and savings?

invested money?

credit card accounts?

mortgage documentation/records?

other financial issues?


Data will be collected via randomly dialed telephone interviews conducted with 3,000 U. S. adults living within the Continental United States (1,000 quarterly). The three waves of interviewing will be conducted in March, June and September 1999. Depth interviews will be conducted with those respondents who are aware of the Y2K problem.


The reports will be available April, July and October, 1999. Each will include key data analysis via reproduction quality graphs, tables and charts. The second and third waves will also include trend data. A complete set of data cross-tabulations will also be included in the reports.


The basic price for each report (wave) of the Y2K Financial Panic Monitor report is $3,800. Those who indicate a commitment to receive all three waves will receive all three reports using the following pricing schedule:

Wave #1 (spring) $3,800

Wave #2 (summer) $2,850 (25% discount)

Wave #3 (fall) $1,900 (50% discount)

Those who commit to two of the three will receive a 25% discount on their second report.

Billing will be done in concert with the publication dates.


To order the Y2K Financial Panic Monitor, either return (by fax or mail) the attached order form with your name and delivery address. You may also phone your order to us at 404-636-6155 or send an e-mail to order@brittainassociates.com. If you have any questions, please call.

1999 Credit Cards on the Internet Report

Brittain Associates. . .providing marketing research and strategic marketing consulting to the financial services industry


At first, the Internet presented itself as a new marketing channel for credit cards. Declining direct mail response rates accelerated issuers’ search for alternative ways to get new accounts. Some issuers are doing better at this than others. Who are they? Now, with the Internet becoming a shopper’s destination of choice, card issuers are looking for ways to make their cards the consumer’s “on-line favorite”. The question is, how well do these on-line customer service and card-use benefits work to create new ownership, more usage and account retention?

Report Information Highlights

As a result of on-line marketing, how many credit card accounts have been opened?

How did consumers locate these credit card offers?

Which on-line marketers of cards have what share?

Do consumers have a favorite on-line buying card?

If so, why?

How many consumers have on-line customer service with some of their cards?

How many get special perks when using certain cards on-line?

How many consumers can pay their credit card bills on-line?

Do these service features and perks make them more loyal?

How much did consumers spend on-line during the 1998 holiday season?

How much of this was charged to a credit card?


Online interviews will be conducted with approximately 4,000 U. S. adult users of the Internet. From this group we will conduct 350 depth interviews with those who have obtained a credit card a s a result of on-line marketing. We will also interview 350 active Internet users who have not yet obtained an Internet marketed card. The data will be collected in March of 1999.


Subscribers will receive a comprehensive report that provides key data analysis and marketing implications via reproduction quality graphs, tables and charts. A complete set of data cross-tabulations is also included in the report. The report will be available for delivery in April, 1999. As always, the report carries our 100% satisfaction guarantee.


Those who indicate an intent to subscribe prior to April 12, 1999 will receive the report at the 20% discounted price of $2,800. The basic subscription for the 1999 Credit Cards on the Internet report is $3,500.


To order the Credit Cards on the Internet report, either return (by fax or mail) the attached order form with your name and delivery address. You may also phone your order to us at 404-636-6155 or send an e-mail to order@brittainassociates.com. If you have any questions, please call. For a complete list of our other consumer financial studies and prices, visit our WEB site listed below.


Mellon Exits

Mellon Bank signed agreements Tuesday to sell its credit card business to Citibank. While terms of the deal were not disclosed, it is estimated the portfolio sold for a 17% premium. According to CardData (www.carddata.com), Mellon currently has $1.9 billion in card receivables and 800,000 accounts. As part of yesterday’s deal, Citibank will establish an agent bank relationship with Mellon, whereby Citibank will market bank credit cards under the ‘Mellon’ and ‘Dreyfus’ brands. Citibank’s affinity card unit has also signed an agreement with the American Dental Association subsidiary, ADA Financial Services Company, to manage and market an affinity card program designed especially for ADA members. Citi said Tuesday the new version of ‘The American Dental Association’ card will feature ‘TravelersMiles’, which enables cardmembers to earn points redeemable for free mileage in a variety of value-added airline travel programs. On Jan. 15, Mellon announced its plans to sell its credit card business, as well as its mortgage business and network services transaction processing unit. With yesterday’s deal Citibank will reclaim its number one ranking, based on outstandings, from Bank One. Goldman, Sachs and Co. served as adviser on the sale of the credit card business. Both banks expects the acquisition to close promptly.


Customer Relationships

Competitive pressures, as well as a growing requirement to manage customer risk, are driving financial institutions to seek more comprehensive levels of understanding and management of complex corporate relationships. Meridien Research predicts broad-scale adoption of more modern customer identification technology, according to a recent report, “Customer Identification Solutions.”

This 23-page report describes the complexities of identifying whole corporate customer relationships across multiple product lines, as well as the way that business drivers and even segmentation definitions can shift among financial institutions of various sizes and types. The report also explores the business value of integrating customer relationship information, including calculation of overall customer relationship value, identification of customer and product overlaps and gap opportunities, and early detection of changes in risk profile.

The solution elements in corporate customer identification systems include components for storing and accessing information, as well as integrating with multiple data sources. The report provides in-depth analysis of interrelation and technical issues associated with elements such as data models, workflow and messaging among applications, interfaces and security, record-keeping and reporting systems, and decision support requirements. In addition, the report explains the role of data integration functions such as matching, editing, and cleansing, which are necessary to merge various account records and eliminate duplicates.

Meridien also looks at the vendors of software solutions, data integration and consulting services with special attention to the vendors’ focus on and experience with financial institutions. The report provides detailed case studies on two institutions, BankBoston (USA) and a large super regional bank, who have functional but continuously evolving customer identification systems.

Meridien Research of Newton, MA, provides analytical research services to users and providers of financial technology. Meridien Research targets three technology segments of strategic importance to financial services firms: Electronic Delivery, Risk Management and Customer Management. Each practice delivers quarterly reports and monthly briefs, detailing new issues and challenges in the area, while keeping the realities of legacy core systems in mind.

Meridien Research is located at 2020 Commonwealth Avenue, Newton, MA 02466, USA, and can be reached by telephone at 1.617.796.2800, via fax at 1.617.796.2850, or by visiting their Web site at [www.meridien-research.com][1].

[1]: http://www.meridien-research.com