Gartner Research

The New S1: From Three to One

Published: 23 February 2000

ID: G0086617

Analyst(s): Laura Starita


In 1995, Security First Technologies (S1) was founded as a software vendor wholly owned by the first Internet-only retail bank in the United States: Security First Network Bank (SFNB). Since then, S1 has been selling its “Virtual Financial Manager” (VFM) suite of Internet banking products for implementation at a bank’s site, for processing through its own data center, or for processing through the data centers of its partners Fiserv and M & I Data Services. In May 1999, S1 announced its intention to acquire both Edify Corporation and FICS Group for a combined total of approximately $1.43 billion in shares. These deals were completed on November 11, 1999 and November 19, 1999, respectively. In August 1999, S1 also announced its acquisition of Vertical One, a financial content aggregation site, for 3.86 million shares of S1 common stock; this transaction was finalized on November 11, 1999.

Table Of Contents
  • Management Summary
  • History
    • SFNB: The Early Years
    • S1: Early Challenges
  • Partnerships
    • Andersen Consulting
    • HP
    • Broadvision
  • Mergers and Acquisitions:
    • Edify Corporation
    • FICS Group
    • Vertical One
  • The New S1: Functionality and Technology
    • Functionality
    • Technology Platforms and Performance
  • The New S1: Strategy
    • On-Premise vs. Data Center
    • Edify and FICS: The Future
  • The New S1: Bottom Line Strengths and Challenges
    • Strengths
    • Challenges
    • Conclusion

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