<p>CALABASAS, Calif. – Digital Insight says it hopes to have 153 former VIFI clients merged on to its system by July. Digital Insight acquired Net banking firm VIFI on Jan. 28. There was some early concern among the 153 CU clients that they were going to be quickly forced to migrate to the DI system. “Our intent is to move them all across to the Digital Insight system. We expect to have all this completed by July. We’ll be project planning for the next five or six months,” said Digital Insight President/CEO Dale Walker. As for price, Walker said DI will honor the contract pricing VIFI clients had with VIFI. Upon renewal, contracts will be re-evaluated. Walker said the VIFI price per user was cheaper than DI’s, about $2.25 per user per month, vs. DI’s $2.70. “We know VIFI’s price point is lower than the Digital Insight price point, but then again we have some other products, functions and features. We’re not particularly concerned about that price difference. We think it will work out over time,” said Walker. “We paid $50 million for 153 client institutions. We wouldn’t be smart if we tried to jack up the price on everybody.” While Walker said the company forecasted, from an economic standpoint, not re-signing all 153 VIFI clients, he hasn’t officially heard of any that won’t come with DI. The company held a Webcast on Feb. 1 to communicate merger aftereffects with VIFI clients. About 120 people, representing 80 CUs attended. Another Webcast is planned for next month. Some VIFI clients said they felt slighted by not hearing from DI right away. “We had a plan we put together before the acquisition was closed on the 28th of January, and that plan involved making phone calls across a four-day period (after the 28th),” said Walker. One other issue on the mind of clients is bill payment. VIFI used a different model than DI. VIFI’s was a good funds model, while DI uses a risk-based model. The risk-based model calls for withdrawing the funds once a member enters a bill pay, while good funds gives members more leeway as to when the funds should be withdrawn. “We felt it was potentially a bigger issue. It’s not turning out that way so far,” said Walker. With the acquisition of VIFI, DI’s 1,500 client mix is split about 50/50 between banks and credit unions, but credit unions make up more than 50% of DI’s revenues. Walker said high adoption rates among many of its CU clients drives that number. Other Net banking players have seen the VIFI/DI merger as an opportunity to woo VIFI clients. Corillian, for example, is actively attempting to move VIFI clients to their system. As for post-merger surprises, Walker said he is surprised about the interest in DI’s cash management product, which is geared to business accounts. Digital Insight developed it primarily for the banking market, but as CUs have embraced member business lending, they are becoming increasingly interested, said Walker. [email protected]</p>

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