Intuit Banking on Digital Insight Deal

This week Intuit Inc., developers of financial software including Quicken and TurboTax, has expanded into the online banking industry with the purchase of Digital Insight.

by Helen Leggatt

Intuit’s biggest acquisition since it’s formation in the early 1980’s will enable it to provide systems and solutions for online banking customers. Together, the companies will serve more than 5,000 financial institutions, nearly 25 million consumers and nearly 7 million small businesses.

"Online banking is growing rapidly, but today's solutions don't meet the needs of most small businesses and many consumers," said Jeff Stiefler, Digital Insight Chairman, President and CEO. "Digital Insight's and Intuit's combined assets and competencies will change the game for small businesses, consumers and the financial institutions that serve them."

According to JupiterResearch the larger banks have done a better job at converting customers to the Web, with 65 percent of their online customers using banking services online. Smaller banks are still trailing with just 45 percent.

The $1.35 billion cash deal will enable Intuit to improve online banking services for both consumers and businesses. Currently, no bank offers personal financial management software for online financial activities such as spend tracking, retirement/pension planning or tax calculations.