Destiny CEO Honored

Destiny Software Corporation, a leading provider of Internet financial services systems, announced last week that Lucinda Duncalfe was honored as one of the 40 most influential young business leaders in the Philadelphia area. Destiny Software’s chief executive received her award at a gala reception last week sponsored by the Philadelphia Business Journal.

Ms. Duncalfe, 36, was chosen for her efforts as chief executive of fast-growing Destiny Software. Destiny grew by over 400% in 1998, and recently signed two new top 10 banking institutions. Destiny also recently added Alex “Pete” Hart, the former Chief Executive of MasterCard and Advanta, to its Board of Directors.

“I really appreciate the honor of joining such a prestigious group. This award is particularly gratifying as it comes in the midst of the greatest momentum we’ve ever had at Destiny,” commented Ms. Duncalfe. “The Philadelphia community has been instrumental to our success, providing tremendous support, access to capital and a wealth of technical talent. I look forward to celebrating tonight with the finest young leaders from our region.”

The “40 Under 40” awards honor Philadelphia’s most talented young professionals. The award judges seek those individuals that shape the direction of the Philadelphia community in all phases of life including business, culture, social service, labor and government service.

Stephen Amsterdam, a Destiny Software Board Member, will also be honored at this year’s awards reception. Mr. Amsterdam is a founding principal of Pennsylvania Early Stage Partners, a $50 million venture capital fund associated with Safeguard Scientifics, Inc. (NYSE: SFE). Pennsylvania Early Stage Partners became an investor in Destiny Software in 1998.

Destiny Software is a leading provider of Internet systems to the world’s premier financial institutions. The company’s software and consulting services enable these organizations to build sophisticated Internet systems, rapidly and reliably. Destiny’s fixed price, fixed time project methodology, backed by a track record of success, eliminates the risks in implementing complex Internet solutions. Destiny’s clients include Bank of America, The Northern Trust Company, GE Capital and First USA (a Bank One subsidiary). The company’s web site is located at [][1].



Brittain’s New Reports

Y2K Financial Panic Monitors

(a series of three consumer tracking studies)

Brittain Associates. . .providing marketing research and strategic marketing consulting to the financial services industry


By now every financial institution in the world is preparing for the Y2K computer problem. Plans have been made to upgrade computers and software and correct the many glitches that this bug has created. But from the consumer’s viewpoint, that may not be enough. Many organizations have advocated hoarding cash and supplies, liquidating investments and closing bank accounts to protect consumers’ assets.

How much do consumers really know about this problem and what steps are they planning to take to protect themselves? Besides preparing systems for Y2K, what should financial institutions do to ease their customers’ concerns about their money?

Because this situation is unique and there is no historical data to tell us what to expect, financial institutions must arm themselves with the information that will help them prepare. Brittain Associates’ series of consumer tracking studies, Y2K Financial Panic Monitors, will provide financial institutions with the information they need to make decisions that will protect their firms and the consumers they serve. And, by collecting the data quarterly, we can monitor how consumers’ fears and opinions change as the end of the year approaches.

Report Information Highlights

What are consumers most fearful about regarding Y2K?

What are their plans regarding those fears?

Specifically, what are their fears about and what are their plans for:

money in checking and savings?

invested money?

credit card accounts?

mortgage documentation/records?

other financial issues?


Data will be collected via randomly dialed telephone interviews conducted with 3,000 U. S. adults living within the Continental United States (1,000 quarterly). The three waves of interviewing will be conducted in March, June and September 1999. Depth interviews will be conducted with those respondents who are aware of the Y2K problem.


The reports will be available April, July and October, 1999. Each will include key data analysis via reproduction quality graphs, tables and charts. The second and third waves will also include trend data. A complete set of data cross-tabulations will also be included in the reports.


The basic price for each report (wave) of the Y2K Financial Panic Monitor report is $3,800. Those who indicate a commitment to receive all three waves will receive all three reports using the following pricing schedule:

Wave #1 (spring) $3,800

Wave #2 (summer) $2,850 (25% discount)

Wave #3 (fall) $1,900 (50% discount)

Those who commit to two of the three will receive a 25% discount on their second report.

Billing will be done in concert with the publication dates.


To order the Y2K Financial Panic Monitor, either return (by fax or mail) the attached order form with your name and delivery address. You may also phone your order to us at 404-636-6155 or send an e-mail to If you have any questions, please call.

1999 Credit Cards on the Internet Report

Brittain Associates. . .providing marketing research and strategic marketing consulting to the financial services industry


At first, the Internet presented itself as a new marketing channel for credit cards. Declining direct mail response rates accelerated issuers’ search for alternative ways to get new accounts. Some issuers are doing better at this than others. Who are they? Now, with the Internet becoming a shopper’s destination of choice, card issuers are looking for ways to make their cards the consumer’s “on-line favorite”. The question is, how well do these on-line customer service and card-use benefits work to create new ownership, more usage and account retention?

Report Information Highlights

As a result of on-line marketing, how many credit card accounts have been opened?

How did consumers locate these credit card offers?

Which on-line marketers of cards have what share?

Do consumers have a favorite on-line buying card?

If so, why?

How many consumers have on-line customer service with some of their cards?

How many get special perks when using certain cards on-line?

How many consumers can pay their credit card bills on-line?

Do these service features and perks make them more loyal?

How much did consumers spend on-line during the 1998 holiday season?

How much of this was charged to a credit card?


Online interviews will be conducted with approximately 4,000 U. S. adult users of the Internet. From this group we will conduct 350 depth interviews with those who have obtained a credit card a s a result of on-line marketing. We will also interview 350 active Internet users who have not yet obtained an Internet marketed card. The data will be collected in March of 1999.


Subscribers will receive a comprehensive report that provides key data analysis and marketing implications via reproduction quality graphs, tables and charts. A complete set of data cross-tabulations is also included in the report. The report will be available for delivery in April, 1999. As always, the report carries our 100% satisfaction guarantee.


Those who indicate an intent to subscribe prior to April 12, 1999 will receive the report at the 20% discounted price of $2,800. The basic subscription for the 1999 Credit Cards on the Internet report is $3,500.


To order the Credit Cards on the Internet report, either return (by fax or mail) the attached order form with your name and delivery address. You may also phone your order to us at 404-636-6155 or send an e-mail to If you have any questions, please call. For a complete list of our other consumer financial studies and prices, visit our WEB site listed below.


Mellon Exits

Mellon Bank signed agreements Tuesday to sell its credit card business to Citibank. While terms of the deal were not disclosed, it is estimated the portfolio sold for a 17% premium. According to CardData (, Mellon currently has $1.9 billion in card receivables and 800,000 accounts. As part of yesterday’s deal, Citibank will establish an agent bank relationship with Mellon, whereby Citibank will market bank credit cards under the ‘Mellon’ and ‘Dreyfus’ brands. Citibank’s affinity card unit has also signed an agreement with the American Dental Association subsidiary, ADA Financial Services Company, to manage and market an affinity card program designed especially for ADA members. Citi said Tuesday the new version of ‘The American Dental Association’ card will feature ‘TravelersMiles’, which enables cardmembers to earn points redeemable for free mileage in a variety of value-added airline travel programs. On Jan. 15, Mellon announced its plans to sell its credit card business, as well as its mortgage business and network services transaction processing unit. With yesterday’s deal Citibank will reclaim its number one ranking, based on outstandings, from Bank One. Goldman, Sachs and Co. served as adviser on the sale of the credit card business. Both banks expects the acquisition to close promptly.


Customer Relationships

Competitive pressures, as well as a growing requirement to manage customer risk, are driving financial institutions to seek more comprehensive levels of understanding and management of complex corporate relationships. Meridien Research predicts broad-scale adoption of more modern customer identification technology, according to a recent report, “Customer Identification Solutions.”

This 23-page report describes the complexities of identifying whole corporate customer relationships across multiple product lines, as well as the way that business drivers and even segmentation definitions can shift among financial institutions of various sizes and types. The report also explores the business value of integrating customer relationship information, including calculation of overall customer relationship value, identification of customer and product overlaps and gap opportunities, and early detection of changes in risk profile.

The solution elements in corporate customer identification systems include components for storing and accessing information, as well as integrating with multiple data sources. The report provides in-depth analysis of interrelation and technical issues associated with elements such as data models, workflow and messaging among applications, interfaces and security, record-keeping and reporting systems, and decision support requirements. In addition, the report explains the role of data integration functions such as matching, editing, and cleansing, which are necessary to merge various account records and eliminate duplicates.

Meridien also looks at the vendors of software solutions, data integration and consulting services with special attention to the vendors’ focus on and experience with financial institutions. The report provides detailed case studies on two institutions, BankBoston (USA) and a large super regional bank, who have functional but continuously evolving customer identification systems.

Meridien Research of Newton, MA, provides analytical research services to users and providers of financial technology. Meridien Research targets three technology segments of strategic importance to financial services firms: Electronic Delivery, Risk Management and Customer Management. Each practice delivers quarterly reports and monthly briefs, detailing new issues and challenges in the area, while keeping the realities of legacy core systems in mind.

Meridien Research is located at 2020 Commonwealth Avenue, Newton, MA 02466, USA, and can be reached by telephone at 1.617.796.2800, via fax at 1.617.796.2850, or by visiting their Web site at [][1].



NextCard IPO

NextCard, Inc. announced Monday that it has filed a registration statement with the Securities and Exchange Commission with respect to an initial public offering of its common stock. NextCard is a pioneer, Internet-based provider of consumer credit. The company was the first to offer an online credit approval system. All shares to be included in the offering will be newly issued shares of NextCard. Morgan Stanley & Co. Inc. is acting as lead manager and Donaldson, Lufkin & Jenrette Securities Corp., Thomas Weisel Partners LLC and U.S. Bancorp Piper Jaffray Inc. are acting as co-managers of the proposed underwriting group.


Paymentech Status

First Data Corp. has signed definitive agreements with Bank One and Paymentech, Inc. for the acquisition of Paymentech, Inc.’s public shares and the combination of Paymentech, Inc.’s operations with First Data’s merchant bank alliance with Banc One Payment Services LLC. First Data will acquire the outstanding public ownership of Paymentech at a price of $25.50 per share. Currently public ownership consists of 16 million shares, representing approximately 45% of the outstanding shares. Bank One owns the remaining 55%. The operations of Paymentech will be combined with Banc One Payment Services LLC which will be jointly owned by Bank One and First Data. Pamela Patsley, currently president and CEO of Paymentech, Inc., will direct the operations of the combined organization.


AmEx One

American Express launched American Express One, a new travel agency division focusing exclusively on the needs of small and mid-sized companies. The new entity combines the operations of Travel One, a Mt. Laurel, New Jersey-based agency acquired last fall by American Express, and two of American Express’ own customer service organizations, one focused on mid-sized companies and another which serves small businesses through the retail office network. American Express One will service companies with less than $10 million in annual travel volume. In total, American Express One will handle approximately $3 billion in annual travel sales and have about 3,500 employees.


iPOS Terminal

MobiNetix Systems, Inc., the leader in electronic transaction management, announced a strategic partnership with Global Card Services, a global provider of credit card related processing services for the hospitality and gaming industries. Under this agreement, GCS will begin offering MobiNetix’s industry-leading MobiNetix iPOS (Interactive Point-of-Sale/Service) terminals to GCS’s customer base.

Building upon a growing installed base of iPOS units conducting millions of transactions per day, the agreement with GCS extends MobiNetix’s reach into the hospitality and gaming markets, including hotels, resorts, casinos and cruise lines.

This partnership addresses an increasing demand for MobiNetix’s innovative interactive point-of-sale (iPOS) terminals, which are designed to improve merchants’ profitability through streamlined operations, reduced costs, improved quality-of-service and increased end-user satisfaction. Targeting multiple industries, MobiNetix iPOS terminals enable secure electronic signature capture and verification capabilities for “electronic registration card” applications, consumer-directed communication, credit/debit card reading, data collection for point of transaction environments, and a platform for promotional messaging and advertising.

“Choosing MobiNetix as a technology partner was a logical choice to help meet the needs of our customers,” said Bill Marshall, chief executive officer, Global Card Services. “We were impressed with MobiNetix’s long-term expertise in developing and deploying electronic transaction solutions as well as their intimate understanding of customer needs. I am confident that this partnership will prove fruitful for both companies.”

Signature capture technology streamlines front desk operations and improves back office efficiencies, while enhancing customer service by eliminating all paper-based registration materials and replacing them with electronic media.

“There is a tremendous market opportunity for MobiNetix’s iPOS solutions to play a strong role in the hospitality industry,” stated Aziz Valliani, CEO of MobiNetix Systems. “We depend heavily on our channel partners to help us address the needs of our customers in markets such as hospitality and gaming. GCS is a valued strategic alliance partner, vital to MobiNetix’s success in penetrating various vertical markets.”

About Global Card Services (GCS)

Founded in 1993, Orlando, FL-based Global Card Services (GCS) is a hospitality and travel niche provider of credit card related processing services, developing and integrating custom designed software and systems with customer-driven support. GCS provides electronic credit card validation services for merchants located in areas where conventional communications are poor or non-existent. For example, GCS services the cruise line industry with the Cruise Card System(TM) product. Over 70% of the cruise industry uses this system for onboard credit card processing. GCS also offers related products to the airline industry. GCS’s web page can be reached at [][1].

About MobiNetix

MobiNetix Systems, Inc. (OTC Bulletin Board: NETX), best known for its iPOS (interactive Point-of-Sale) terminals, provides electronic transaction management platforms that are designed to increase efficiency, expand capabilities and be integrated into the emerging global e-commerce infrastructure. The Company’s PenWare brand terminals offer touch-screen payment, interactive communication, secure signature capture and data collection. MobiNetix also provides a suite of software products designed for iPOS electronic transaction management that are sold through a direct sales force, OEMs, systems integrators and VARs.

With a large installed base of technologically advanced products, including companies such as Federated Department Stores, Inc., the company that runs upscale department stores such as Bloomingdale’s and Macy’s, and the United States Postal Service, MobiNetix is helping its customers realize a new marketing potential while streamlining business operations. Additional information is available at [][2], by sending an e-mail to, or by calling 1-408-524-4200.

This release contains forward looking statements which involve risks and uncertainties that could cause actual results to differ materially, including price and product competition, design acceptance by customers, financing constraints, the ability to manufacture new products in sufficient volume, general economic conditions, and other risks as detailed from time to time in SEC reports and filings by MobiNetix.

Hide & Seek, PenWare and iPOS are trademarks of MobiNetix Systems, Inc. All other products or company names mentioned are used for identification purposes only, and may be trademarks or registered trademarks of their respective owners.



PNC E-Banking

PNC Bank, Integrion Financial Network and CheckFree announced yesterday plans to pilot a fully integrated, Web-based electronic banking, bill delivery and payment service for PNC Bank customers.

The integrated solution will enable PNC Bank customers to receive, view and pay a wide range of bills over the Internet. Through PNC Bank’s Account Link by Web, customers will have access to their bank account and bill information in a single log-on session, 24 hours a day, seven days a week. In addition to the banking information currently available through Account Link, PNC Bank customers will be able to pay all of their bills electronically and actually see summary and detailed bills from participating merchants.

“We are excited to be one of the first banks in the country piloting integrated bill payment and presentment,” said Martin Evancoe, senior vice president of Electronic Commerce for PNC Bank. “By enhancing Account Link, our Web banking service, with this new technology, we believe our customers will find this integrated set of services compelling and valuable, month after month.”

The solution will connect Integrion’s Interactive Financial Services (IFS) platform and CheckFree’s E-Bill and new processing infrastructure with PNC Bank’s internal systems. For almost a year, PNC, one of the founding owners of Integrion, has been using the IFS platform to deliver its Account Link by Web electronic banking service. Account Link by Web has been providing thousands of PNC Bank’s consumers with around-the-clock access to banking information and transaction capabilities. PNC Bank has also been using CheckFree’s bill payment service for its customers using personal financial management software and telephone bill payment. The integrated solution will leverage the strength and scalability of IFS with the state-of-the-art bill delivery and payment technology of CheckFree. PNC Bank will customize and brand the consumer experience to be consistent with its current Internet delivery service.

In addition to the bank’s efforts with Account Link, PNC Bank’s Treasury Management division recently signed an agreement to wholesale CheckFree’s E-Bill product.

“Integrion intends to deliver solutions that make Internet banking, bill delivery and payment an easy and highly reliable proposition for consumers — a one-stop shop at their bank Web site,” said William M. Fenimore Jr., chief executive officer of Integrion. “We are very enthusiastic about PNC Bank’s leading initiatives in this arena and are committed to enabling them to provide their customers with a compelling experience.”

According to Pete Sinisgalli, chief operating officer for CheckFree, “The banking industry has a huge opportunity to drive widespread awareness and adoption of electronic billing and payment. Comprehensive services like the solution PNC Bank will be offering its customers are the benchmark for the newest generation of online financial management.”

CheckFree currently works with more than 40 of the nation’s top billers to provide electronic billing and payment, including: AT&T, Columbia Gas of Ohio, Countrywide Home Loans, CUNA Mutual Insurance and MCI WorldCom. PNC Mortgage will also participate with CheckFree in this pilot.

About PNC Bank

PNC Bank Corp. (NYSE: PNC), headquartered in Pittsburgh, is one of the largest diversified financial services organizations in the United States. Its major businesses include Regional Community Banking, Corporate Banking, Private Banking, Mortgage Banking, Secured Lending, Asset Management and Mutual Fund Servicing. Visit PNC Bank on the World Wide Web at .

About CheckFree

Founded in 1981, CheckFree (, the operating subsidiary of CheckFree Holdings Corp. (Nasdaq: CKFR), is the leading provider of electronic commerce services, software and related products for more than 2.6 million consumers, 1,000 businesses and 850 financial institutions. CheckFree designs, develops and markets services that enable its customers to make electronic payments and collections, automate paper-based recurring financial transactions and conduct secure transactions on the Internet.

About Integrion

Integrion Financial Network is a leading provider of interactive banking and electronic commerce services to financial institutions. Through the Interactive Financial Services (IFS) platform, Integrion offers financial institutions a network through which electronic transactions flow from multiple consumer access points to a bank’s host system and/or processor. Technology partnerships with IBM and CheckFree Corporation allow for the delivery of flexible, high utility applications that can be employed at a financial institution for the benefit of end customers.

Integrion’s operating philosophy allows banks to determine the manner and format in which home banking and electronic commerce services are offered, ensuring consistency with the bank’s full range of services, effective branding by the bank and maximum customer benefit. For more information, visit the Integrion web site at .


Gemplus ’98

Driven by increased sales of higher value microprocessor cards, including GSM cards, Gemplus reported yesterday that revenues totaled US$648 million last year, an 1% improvement over 1997. Net income was US$27 million, compared to US$2 million in 1997. Due primarily to increased factory productivity, gross margins rose from 32 percent in 1997 to over 34 percent in 1998. Research and development expenditures increased 30 percent over 1997 and reached US$50 million in 1998, a record in terms of spending level as well as a percentage of revenues.