Bottomline Technologies has agreed to acquire the commercial banking business of Intuit Financial Services, and the two firms have committed to a partnership designed to improve delivery and distribution of their respective skill sets. Intuit will continue its focus on the smaller customer segment. Bottomline will speed its adoption of cloud-based technology and head down-market from its current top tier positioning, to offer a broader commercial banking solution to a larger group of financial institutions.
Intuit Financial Services SVP and general manager CeCe Morken asserts:
Improving the solutions and services small businesses and consumers receive from their financial institutions is more than an Intuit strength, it’s in our DNA. This relationship enables us to further concentrate on helping financial institutions better engage these important customer segments and grow. At the same time, our commercial banking customers will benefit from Bottomline’s focus and expertise in cash management.
This transaction recognizes that the impact of two trends in commercial banking. First, the needs of small business commercial customers and those of larger commercial customers are continuing to diverge, and providers do need to organize different solutions suited to each. Second, the usage-based pricing model of cloud-based services is going to enable second tier and midrange financial institutions to offer “top tier” services to more commercial banking customers. By combining their skill sets, Intuit FS and Bottomline should both be better able to compete in their chosen segments.
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