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Banks looking to support personal financial management (PFM) software may have to consider another major player.
Competition in the PFM software business continued to heat up last week as three new bank-investors pledged their moneys to Fairfield, Conn.-based Meca Software's Managing Your Money PFM product.
FirstBank Systems, Fleet Financial Services and the Royal Bank of Canada all bought stakes in Meca, which is co-owned by San Francisco- based BankAmerica Corp. and NationsBank Corp.. Each of the five institutions will own a 20-percent share of Meca.
The five Meca partners have a combined customer base of more than 40 million customers and represent more than $655 billion in assets, giving Meca -- whose software is used by more than 600,000 consumers and small businesses in North America -- a significant competitive boost, industry analysts say.
However, some banks do not believe the Meca partners will be able to work together and create a competitive product.
The overwhelming market leader for PFM software, with more than 8 million copies sold, is Intuit's Quicken. Microsoft's Money PFM product -- launched earlier this year -- is a distant third to Meca. PFM Maneuvering The Meca deal continues a six-month trend, which has seen PFM manufacturers aggressively seeking out bank partners to offer on-line home banking. Both Microsoft and Intuit have struck agreements with more than 19 banks across the United States. Many of these institutions including Chemical Bank, CoreStates Bank and Wells Fargo Bank...