Joint Financial Insights and IDC Reports Examine Wireless Financial Services Market

FRAMINGHAM, MA – JULY 16, 2003 – IDC and leading independent research and advisory firm Financial Insights have each issued new reports based on a joint research effort that examine the wireless financial services market.

The Financial Insights report, titled "Wireless Financial Services: Technology Trends"examines the boom and bust history of handheld wireless financial services and offers important insight on the lessons it holds for vendors and institutions going forward. The report explores the existing device marketplace, including the use of handhelds (PDAs and similar devices), handsets (phones), and converged devices (phone/PDA combination) as data devices to access and deliver financial services, and then offer vendors and institutions clear guidance on how to proceed in the promising

wireless financial services marketplace.

"Handheld wireless financial services is a classic technology-bubble story of early enthusiasm and boom, followed by rapid bust and despair,"explains Richard Bell, research manager for Retail Financial Services at Financial Insights. "And yet despite limited institutional offerings and user uptake, we believe that there is some potential – but capitalizing on these developments and harvesting the potential of wireless financial services will not be easy."

"The evolving capabilities of handheld devices have made the products a legitimate conduit for financial services,"said

Ross Sealfon, research analyst in IDC's Smart Handheld Device team and author of the IDC report "Mobile Banking in the United States: Handheld Devices in Financial Services"(IDC #29642). "The devices' improved capacity to capture critical data, take photos, and wirelessly transmit time sensitive information while maintaining the ability to synchronize with an office PC will spur interest from financial institutions."

A second Financial Insights report, titled "Wireless Financial Services: Life after Death"examines wireless financial services from the perspective of both handheld device vendors and financial service institutions. The report provides vendors and financial service institutions with an in-depth analysis of the financial services applications marketplace for handheld wireless services with existing and projected market estimates for consumer, commercial, and professional uptake. The report also examines the accelerators and inhibitors for handheld wireless financial services, and again offers guidance on moving forward in the marketplace.

"While user demand and institutional deployment of handheld wireless financial services will remain limited, we believe that there is reason for optimism in several areas, particularly alerts and notifications, and professional applications,"says Financial Insights' Bell. "However, capitalizing on this potential requires a clear understanding of both the technology potential and the factors underlying potential user adoption."

For more information on obtaining these Financial Insights reports, please contact: To purchase the IDC document, call IDC's sales hotline at 508-988-7988 or email

About Financial Insights, an IDC Company

Financial Insights provides independent research services to users and providers of financial industry technology. The company was formed in November 2002 by combining Meridien Research and the IDC Financial Services Advisory group. The Retail Financial Services practice offers four areas of focus: Payments, Channels, Customer Strategies and Wealth Management. The Capital Markets practice offers Trading Technologies and all aspects of Risk Management. The Corporate Banking practice covers cash management, wholesale payments, trade finance, and small business banking. Each practice delivers reports detailing new issues and challenges and uses its knowledge to advise clients on technology related decisions. Financial Insights is an IDC Company, headquartered in Framingham, MA. Visit for more information.

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a division of IDG, the world's leading technology media, research, and events company. Additional information can be found at

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