Digital Insight acquires financial aggregator

CALABASAS, Calif. - Internet solutions provider Digital Insight is definitely expanding its product base - and it's doing it through acquisitions. Announcing its second acquisition in less than two weeks, Digital Insight will acquire financial aggregation firm 1View Network, San Francisco. Like the acquisition of AnyTime Access, Sacramento, 1View Network gives Digital Insight a product it has yet to develop on its own. AnyTime Access gives Digital Insight the ability to do outsourced call center lending support, while 1View Network brings online financial aggregation capabilities into Digital Insight's offerings. Financial aggregation is being dubbed by experts as a sure fire way for credit unions to become their members' primary financial institution. However, many industry analysts also said that about Internet banking and bill payment and there is no strong PFI evidence for those products. "This acquisition broadens and strengthens our position in the overall market and represents another way in which we're working to add value to our products and services," said Digital Insight Chairman, President and CEO John Dorman. 1View Network's Consolidator product allows end users to view, manage, and pay their bills from one Web site. The company also offers its 1View Network Financial Planner service that lets consumers manage multiple accounts and financial relationships from one Web site, similar to what Charles Schwab does in letting its online users view their varying mutual fund holdings from different companies. 1View Network's products utilize the Open Financial Exchange protocol, which has developed into the standard for financials doing business over the Internet. One interesting aspect of this acquisition is that to date Digital Insight has been targeting community financials (credit unions and community banks), but IView Network has some mega banking clients, including Wells Fargo, as clients. Other mega banks are expected to begin using a 1View Network product sometime in 2000. "It underscores our tradition of providing to community financial institutions the same level of service and product functionality that has previously been available only to the largest banks," said Dorman. 1View Network will continue to operate out of its San Francisco facilities as a division of Digital Insight. Mike Lanza, president/CEO of 1View Network will begin reporting to Paul Fiore, one of two co-founders of Digital Insight, who now goes by the title Executive Vice President of New Ventures. The deal is expected to close in the second quarter of 2000. 1View Network shareholders, option holders, an debt holders will receive 1.1 million shares of Digital Insight stock and $5 million in cash. -pgentile@cutimes.com