EDS wants to put money in the bank.
The company's Electronic Business division says it plans to team with Oracle to run billing services for
financial industries. As a result of the partnership, billers and
consolidators are expected to be able to use EDS Interactive Billing Services for bill
payment and settlement.
The plan, announced today at the Bank Administration Institute's Retail
Delivery Show in Las Vegas, is meant to allow billers and consolidators using Oracle
software to be able to hook up directly with EDS Interactive Billing Services,
enabling users to see a copy of the bill through the system.
Both EDS and Oracle are also in discussions about jointly developing related
electronic commerce software based on the Open Financial Exchange (OFX)
"I think EDS has worked in a number of ways to get more vertically
focused," said Tom Grace, an analyst at AMR Parteners, referring to the
company's effort to capture more business in manufacturing and financial
Financial services--including banks, billing services, and billers--is
a hotly competitive, lucrative, and up-for-grabs emerging market for service
companies and ERP vendors. Along with Oracle, SAP and PeopleSoft are also getting into the
race for the next big vertical wave.
A report released this week by applied
market research and consulting company G2R estimated that the market for global enterprise solutions in
the financial services industry will top $40 billion by 2003.
According to G2R's research, traditional enterprise resource planning (ERP)
applications are increasingly being bumped out of the back-office to handle
additional business processes in vertical markets.
Using EDS Interactive Billing Services, companies can electronically send
bills to customers over the Web. Customers use a browser to view bills and
can then pay them electronically via credit card, debit from a checking or
savings account, ACH transfer, or other methods.
Oracle's e-commerce technologies deliver bills to the biller's Web site.
The software can also route bills to any number of bill consolidators or
Consumer Service Providers such as TransPoint or Quicken.com.
Oracle's entry into the online billing market, underscored by CEO Larry
Ellison's speech earlier this week to some 8,000 bankers at the Las Vegas
conference, has been in the works for at least a year. Version 1.0 of
Oracle Internet Bill & Pay, originally code-named Tribeca, is being
supported by two other vendors in the online billing market, CyberCash and
CheckFree, emphasizing the complex nature of the so-called bill-paying and