Intuit Seeks Bigger Piece Of Online Banking Through Digital Insight Purchase - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Software // Enterprise Applications

Intuit Seeks Bigger Piece Of Online Banking Through Digital Insight Purchase

Intuit is looking to convince banks to offer services beyond traditional online checking, savings, and bill payment.

Intuit believes in the software-as-a-service model enough that it's paying $1.35 billion in cash for the opportunity to sell the capability of its popular financial software as a service added on to banks' Web sites.

Intuit last week said it's buying Digital Insight, which provides services to about 1,760 mostly midsize banks and has $214 million in annual revenue. Intuit had $2.3 billion in sales its most-recent fiscal year. Seven million small businesses use Intuit's QuickBooks software, and 15 million consumers use its Quicken product.

Today, banks primarily offer Web services that move conventional banking tasks online--write checks, make deposits, pay bills. Intuit will try to sell functionality of its QuickBooks record-keeping software as a service through banks, letting small businesses create, send, and get paid for invoices, all online at a bank's site. With millions of QuickBooks customers, Intuit can make a good case to banks that it understands small businesses' needs.

For consumers, no banks offer financial management services similar to the software from Intuit or its competitors such as Microsoft, says JupiterResearch analyst Asaf Buchner. Only about 45% of small-bank customers use online banking services, Buchner adds.

Intuit learned with its tax return business how quickly packaged software can move to a Web service. Last year for the first time, more people used the online version of its TurboTax service than the desktop version.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

11 Things IT Professionals Wish They Knew Earlier in Their Careers
Lisa Morgan, Freelance Writer,  4/6/2021
Time to Shift Your Job Search Out of Neutral
Jessica Davis, Senior Editor, Enterprise Apps,  3/31/2021
Does Identity Hinder Hybrid-Cloud and Multi-Cloud Adoption?
Joao-Pierre S. Ruth, Senior Writer,  4/1/2021
White Papers
Register for InformationWeek Newsletters
Current Issue
Successful Strategies for Digital Transformation
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Flash Poll