*NEWS*IMAGING SRVCS PRESENT MAJOR REVENUE
*NEWS*IMAGING SRVCS PRESENT MAJOR REVENUE
2004-04-06 at 10:38:00 am #6934
Imaging Services Present Major Revenue Opportunity for Financial Institutions Dealing in the Business Markets
Imaging Services Present Major Revenue Opportunity for Financial Institutions
Dealing in the Business Markets
Statement And Disbursement Imaging, Storage, and Retrieval, Offered Via the
Internet and Other Platforms, are in High-Growth Mode
CALABASAS, Calif.,– Informa Research Services, Inc., today released results from a new study of 2,800 micro, small, and middle market companies reflecting steep growth in the use of disbursement imaging and statement imaging across all business markets. In this study, micro market companies are defined as those with annual revenue between $50 and $999.9 thousand, small businesses are defined as companies with annual revenue between $1 and $19.9 million, and middle market companies are defined as those with annual revenue between $20 million and $249.9 million. This study tracks a wide array of depository and cash management services, as well as the platforms through which customers conduct their core banking functions.
“From 2001 to 2003, statement imaging has grown dramatically in each of the business markets: from 2% to 11% in the micro market, from 9% to 21% in the small business market, and from 29% to 38% in the middle market,” said Mike Marselli, Market Strategist and manager of Informa’s study. “Growth in these business markets’ use of disbursement imaging has also been substantial: from 19% to 29% in the small business market and 36% to 58% in the middle market; and although Informa did not track micro market use of disbursement imaging in 2001 or 2002, 21% of those companies now use the service, and we can safely assume that growth in the micro market has also taken place at the same steep level of new-user adoption.”
“The important thing to keep in mind regarding this data is that these services offer financial providers with numerous ways to increase fee-based revenue, especially in the areas document storage and retrieval via the Internet,” continued Marselli. “While many banks offer their retail customers free check image viewing, many charge for the service with regards to their business customers. Banks and other financial providers that serve the business markets can charge for archiving, per-item viewing fees, and for specialized services such as image-based positive pay. In a word, this is a high-growth area that competing institutions cannot afford to ignore.”
“In years past, in the micro and small business markets, the majority of companies that used disbursement imaging were customers of community banks that received copies of their paid items in their regular monthly statements,” stated Marselli. “For years, adoption rates for this service remained relatively stable. The steep growth that has occurred during the 2001-2003 period can mostly be ascribed to the Internet.”
“For larger companies with high-volume disbursements, the CD-ROM was the main format through which these customers received check images. Now, again, the Internet has hastened the growth in the middle market as well. Statement imaging has followed a similar history, and again, the Internet has been the main driver of growth for the service,” concluded Marselli.
Mike Marselli, a certified treasury professional and market analyst, has over 15 years experience in the financial services industry, serving with Dun & Bradstreet Information Services and color=#800080PSI Global prior to joining Informa Research Services in 2000. His background includes experience in business-to-business market strategies, industry trend forecasting, e-commerce trend analysis, and primary market research.
The business market research study, performed by Informa Research Services, includes approximately 1,000 interviews with micro market companies, 1,000 interviews with small businesses, and about 800 interviews with middle market companies. The study is conducted annually during the months of March through July, and consists of telephone-based interviews with small and middle market companies throughout the US. The study has a +/- 2.5% margin of error at the 95% confidence level.
Growth in the Use of Imaging Products for Micro, Small and Middle Market
Micro Market Small Business Middle Market
Product 2001 2003 2001 2003 2001 2003
Imaging  21% 19% 29% 36% 58%
Imaging 2% 11% 9% 21% 29% 38%
 Informa Did Not Gauge Micro Market Use of Disbursement Imaging in
Source: Informa Research Services 2001-2003 Business Market Research
About Informa Research Services, Inc.
Founded in 1983 and headquartered in Calabasas, CA, Informa Research
Services, Inc., provides the financial industry’s most extensive array of
market research and decision-support information.
Conducting daily surveys of the retail and business products offered by more than 10,000 financial organizations nationwide, Informa Research Services, Inc., currently supports the product pricing decisions of more than 2,500 clients, representing all 50 states and including the top 25 financial institutions. This electronically transmitted competitive pricing intelligence effectively generates profitable responses to continual market changes, enables clients to effectively position deposit and loan products within local markets, maximizes interest income, and manages interest expense. Informa is the premier provider of fee and feature studies used to determine the competitiveness of fee-based services. In-depth studies are also available on cash management services, trust products, mystery shops, customer satisfaction surveys, compliance testing, and other specialized services.