Banks Capitalizing on Profitable Wholesale Banking Market with S1 Business Solutions

Monday 3 November 2003 18:19 CET | News

The growing number of banks that are selecting S1 Business Solutions range from top 50 banks such as Wells Fargo and FleetBoston Financial, to community and regional banks including Peoples, Inc. and Mercantile Bank.

These banks are turning to S1 to help them capture market share in the lucrative wholesale banking market, particularly in the rapidly growing small business segment. TowerGroup recently estimated that within the $10+ billion total cash management market, U.S. financial institutions have generated approximately 39 percent of the revenues from large corporate clients and 26 percent from small businesses. In an effort to further tap into this growing market, TowerGroup also predicts that U.S. banks will spend approximately $4 billion on cash management-related technology in 2004, an increase of more than six percent over 2003 spending levels. Peoples, Inc., a $650 million asset three-bank holding company in Colorado, Kansas and New Mexico, recently switched from another software vendor to gain the advanced functionality required by small business owners, as well as the support of a company totally focused on providing enterprise services for financial institutions. Wells Fargos offering of the S1 Trade Finance product is filling market demand for a worldwide solution to automate trade activity. S1 Trade Finance allowed us to get to market quickly with a comprehensive letter of credit management platform that is helping us to strengthen our customer relationships and increase our market share and revenue generation with net new customers, said Jeff Gordon, vice president, International Product Management at Wells Fargo. For years, FleetBoston Financial has relied on several of S1s cash management solutions to support the complex needs of its wide range of small to high-end customers worldwide. In fact, the company currently uses S1 Corporate Banking for its high-end customers and is in the early stages of implementing the S1 Business Banking solution on the S1 Enterprise Platform. One of the best things about the Enterprise Platform is that it gives us the ability to develop our solution on one platform, not 11 different systems that in the past, have required us to spread our resources too thin, said John Mutschler, director of Emerging Technologies at FleetBoston. In addition, the Banks global trade services group has moved to the Web-enabled version of S1 Trade Finance, enabling them to cut the resources needed to support their trade customers by more than 30 percent, according to Sue Clark, senior vice president of Global Trade Product Management at FleetBoston. Mercantile Bank, a $1 billion asset bank, is currently using S1s IBS Cash Management product to meet the demanding needs of the full range of wholesale clients it serves, from small businesses to larger, more complex corporate accounts. In addition, the bank has been able to demonstrate a full return on its online banking investments, something that many institutions are still struggling to do. Between cash management and our new funds manager fees, we were able to cover all of our Internet banking costs within the first two years of implementation, said John Schulte, vice president operations at Mercantile Bank. S1s Business Solutions include: -- S1 Business Banking provides competitive, cash management tools, as well as two-way OFX and account aggregation for SOHO to middle market business customers. -- S1 Corporate Banking delivers sophisticated multi-lingual, multi-currency functionality, extensive reporting features, and a powerful payments engine for high-volume corporate customers. -- S1 Trade Finance streamlines international trade finance operations from purchase order, and letter of credit, to direct collections in one, integrated system. -- S1 IBS Cash Management provides competitive functionality in a packaged, affordable Internet cash management solution for smaller financial institutions.

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Categories: Banking & Fintech | Online & Mobile Banking
Countries: World
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Banking & Fintech