Financial Network Services Western Europe 1990-1995

176 Pages·1991·10.4 MB·English

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FINANCIAL
NETWORK
SERVICES
WESTERN EUROPE
1990-1995
INPUT
Piccadilly House 33/37 Regent Street, London SWIY 4NF 071-493-9335
FINANCIAL NETWORKSERVICES—WESTERN EUROPE. 1990-1995 INPUT
Researched by
INPUT
Piccadilly House
33/37 Regent Street
SW1Y4NF
London
England
Published by
INPUT
1280 Villa Street
Mountain View. CA 94041-1 194
U.S.A.
Network Services Programe (NSP)
Financial Network Services—Western
Europe, 1990-1995
Copyright ©1991 by INPUT. All rights reserved.
Printed in the United States of America.
No part of this publication may be reproduced or
distributed in anyform orby any means, or stored
inadatabaseorretrievalsystem,withoutthe prior
written permission of the publisher.
NEFNO- 519 -1990
FINANCIAL NETWORK SERVICES—WESTERN EUROPE. 1990-1995 INPUT
Abstract
This report analyses the financial network services sector for Western
Europe and its growth potential over the period 1990-1995.
INPUT defines the network services sector as network applications and
electronic information services (EIS):
• Network applications is segmented into managed network services
(MNS), messaging services, electronic data interchange (EDI) services
and other application services;
• EIS is segmented into on-line databases and news services.
Financial network services range from security and performance manage-
MNS
ment services in the area to network applications services used in
support of automatic teller machine and international payments networks.
The challenge for vendors is to offer a service which handles all classes
of network service on an end-to-end basis.
This report reviews the third-party vendors selling financial network
services, including those software and services companies owned by
groups of financial institutions, airline companies or other large
organisations. The report identifies leading vendors in the Western
European market in the two subsectors of network applications and EIS
as applied to the financial services industry. Three vendor profiles
illustrate different marketing and service strategies.
This report contains 142 pages, including 52 exhibits.
e1991 byINPUT. ReproductionProhibited.
AUTHOR
TITLE
DATE
BORROWER'S NAME
LOANED
. .
S8
CAT No. 23-108 PRINTED IN U. S. A.
111
FINANCIAL NETWORK SERVICES—WESTERN EUROPE. 1990-1995 INPUT
Table of Contents
I Introduction
A. Objectives 1
B. Scope 1
C. Methodology 2
D. Report Contents 3
n Executive Overview ^ 5
—
A. Financial Network Services Dramatic Increase in Demand 5
B. Strategic Challenges 7
A
C. Changing Environment 9
A
D. Market Definition 1
1. Network Applications 1
a. Managed Network Services 1
b. Network Messaging Services 12
2. Electronic Information Services 12
E. Large Vendor Dominance 13
F. The Pan-European Electronic Securities Market 14
G. Leading-Edge Banking 15
1. Corporate Customer Services 16
2. EFTPoS 16
H. Organisational Issues 17
L Recommendations 18
|ni Market Dynamics 21
A, Overview 21
B. The Financial Sector 24
1. The Electronic Stock Exchange 26
2. Networked Systems 28
SEAQ
28
a.
TOPIC 30
b.
NEFNO ® 1991 byINPUT. Reproduction Prohibited.
FINANCIAL NETWORK SERVICES—WESTERN EUROPE, 1990-1995 INPUT
Table of Contents
(Continued)
—
m\ Talisman 30
c.
TRAX
30
d.
'
DTB
30
e.
IBIS 31
f.
CAC
31
g.
h. RELIT 32
Other 33
i.
3. Vendor Opportunities Among the Securities Houses 34
and Stock Exchanges
4. Banking Market Opportunities 36
a. EDI 37
b. Corporate Customer Terminal Systems 41
c ATMs 42
EFTPoS 42
d.
e. Debit/Credit Cards 43
Smart Cards 44
f.
Home Banking 45
g.
IV Market Structure 47
A. Financial Network Services Overview 47
1. Financial EIS 48
2. Financial Network Applications 56
3. Directions for the 1990s 62
B. Leading Western European Country Markets 63
1. Germany 64
2. France 66
3. U.K. 68
4. Other Countries 69
Service Providers 71
A. The Role of the Banks 71
B. Service Provider Profiles 73
GE
1. Information Services 73
a. Background 73
b. Market Position 74
The Network 74
c.
d. Network Services 75
e. Financial Services 76
Software 77
f.
g. Overall Strategy 78
11 e1991 by INPUT. ReproductionProhibited. NEFNO
FINANCIAL NETWORK SERVICES—WESTERN EUROPE. 1990-1995 INPUT
Table of Contents
(Continued)
V
2. Infonet 78
a. Background 78
b. Market Position 79
The Network 79
c.
d. Network Services 81
Dial X.25 Service 82
i.
X.25 Access 82
ii.
Managed Network Services 83
iii.
iv. Interpac 83
V. Software Services 84
vi. Minitel 84
e. Overall Strategy 84
MCI'srole 85
f.
SWIFT
3. 85
a. Overview 85
b. Level of Services 86
Background 86
c.
.
d. Functional Requirements 87
SWIFT 88
e. I
f. SWIFT Interface Devices 88
SWIFT n
89
g.
h. Charges 92
Overall Strategy 93
i.
SWIFT'S EDI Services 93
j.
Background 93
i.
Services 93
ii.
Implementation 94
iii.
iv. Message Types 95
V. Network Features 96
vi. Strategic Issues 97
C. I Banking Issues 98
VI User Environment 101
A. Banque Paribas 101
1. Background 101
2. IS Systems and Applications 101
3. Extemal Services 102
4. The Network 102
5. Overall Strategy 104
B. Deutsche Bank 105
1. Background 105
2. IS Systems and Applications 105
3. IS Budget 106
NEFNO © 1991 by INPUT. Reproduction Prohibited. ill
FINANCIAL NETWORK SERVICES—WESTERN EUROPE, 1990-1995 INPUT
Table of Contents
(Continued)
VI 4.. New Services 106
The Network 107
5.
6. New Projects 108
7. Overall Strategy 109
C. Barclays Bank 109
Background 109
1.
2. Organisation 110
DP
3. Systems and Applications 111
4. IS Budget 111
5. New Projects 112
TheNetworic 113
6.
7. Overall Strategy 114
Vn| Future Directions 117
A. Introduction 117
B. Market Development 117
C. International Financial Networks: Technical Characteristics 119
D. Network Contribution to Bank Strategy 120
E. Vendor Opportunities 121
1. International Networking 121
2. Environmental Developments 122
3. Competitive Environment 123
New
4. Services 123
5. Risks 124
F. Requirements for the 1990s 124
G. Recommendations 125
Appendixes A. Definition of Terms 127
B. Forecasting Assumptions and Exchange Rates 133
C. Vendor Questionnaire 135
iv C1991 by INPUT. RepfodualonProhibited. NEFNO