See Table of Contents for Tiburon's FSI Technology Research Report Tiburon Strategic Advisors, a market research & strategy consulting firm serving a wide variety of financial institutions and investment managers, is pleased to announce the release of its new research report on Financial Services Industry Technology. This research release summarizes some of the report's key findings. The purpose of this report is to provide readers with an initial understanding of financial services industry technology, including bank institutional technology, brokerage institutional technology, asset management institutional technology, & insurance institutional technology. The report includes a history of the market, an analysis of leading players by segment, and predictions for the future of financial services industry technology. This is the second draft of Tiburon’s research on this topic. Tiburon's first draft of this report was published in 2009; that draft consolidated prior Tiburon research into one report and was unbundled from Tiburon's equally thorough financial advisor technology research report. This is Tiburon's second draft of this report; this draft includes a reconciled appendix with Tiburon’s online tools & advice and financial advisor technology research reports. This draft also includes minor enhancements to the profiles of Consona, Northstar Financial Services Group, Net Suite, Optima Technologies, & Sales Force.Com. Key Findings This report has a long list of interesting facts to share: Market History Between 1995 and 2000, the internet penetration in the United States tripled from less than 15% to almost half of households The internet ramp up period came at a much faster pace than the adoption of all other new twentieth century media The most often paid bills online are utilities and credit cards. 78% of online bill payers pay utilities online, and 78% pay credit card bills Market Segmentation This section will outline the five best practices utilized by leading financial advisor firms: Bank Institutional Technologies Fiserv’s CheckFree handles 50% of all online bill payments Ten million Americans are victimized by identity theft per year Only 12% of financial institutions’ IT budgets are dedicated to security Nearly all affluent internet users report their security concerns would be alleviated through guaranteed reimbursements Leaders in compliance & anti-money laundering technology include Wolters Kluwer, Actimize, and others Brokerage Institutional Technologies Market share of compliance technology is likely divided amongst a few players including Charles River Development, Fitch’s Algorithmics, and FT Ventures’ Actimize Concentration in brokerage managed accounts technology is prevalent, as three-quarters of the leading brokerage firms use the Check Free APL System Asset Management Institutional Technologies Almost all the leading separate account managers use the CheckFree APL system Leaders in private accounts technology include Advent, Shaw data, Thomson, & FMC Pacer Leaders in performance measurement & attribution include Zephyr Technology & PPCA Insurance Institutional Technologies Insurance distribution technology leaders may include Choice Point, COSS Development, and Insurance Technologies Market share of underwriting technology is likely divided by a few key players, including Fidelity National Financial Future Predictions for Financial Services Industry Technology This chapter outlines the future predictions for financial services industry technology: Increased Spending on Technology & Shift in View of Technology Fidelity Investments, The Charles Schwab Corporation, & Merrill Lynch will continue to lead the way in technology spending Financial services companies seem ready to embrace technology development; nearly three-quarters of bank senior executives feel that it is essential for growth Growing Dominance of Application Service Providers (ASP) Models Banks that have made document management investments have seen returns on investments of between 20% and 40% Rapid Growth in Outsourcing Over one-third of financial advisors now outsource some part of their business Three-quarters of financial advisors believe that portfolio management is getting more complex Complete portfolio outsourcing models include those from Envestnet Asset Management, Fortigent and Lockwood Fortigent seems to be a popular outsourcing solution amongst financial advisors Partial portfolio outsourcing models include those from Morningstar, Prima Capital Management, and Greenrock Research To better understand the developments for FSI Technology, executives can purchase Tiburon's An Initial Overview of Financial Services Industry Technology research report where the key findings highlighted above are covered in greater detail. Please contact Sarah Sage at SSage@TiburonAdvisors.Com or 415-789-2540.