Ewise To Getting Ahead Despite It's Global Downturn

Ewise To Getting Ahead Despite It's Global Downturn

Sydney Morning Herald
15 February 2003
Pam Kershaw

Despite tough global conditions in IT, a Sydney software development company is building an international market for technology that exploits the growth in online financial services and international fears about privacy and security.

eWise Systems has developed account aggregation software that enables consumers to see the status of their online bank accounts, credit cards, share trading accounts, frequent flyer points, telephone and other utilities on a single computer screen.

There are hyperlinks to their bank and other institutions, where they can undertake transactions such as transferring funds and paying bills online. More than 200 institutions can be accessed through the eWise system.

While account aggregation software has been developed by US companies such as Yodlee, the chief executive officer of eWise, Alex Grinberg, says other programs require customers to divulge highly sensitive data such as usernames and passwords of bank accounts, which is then centrally stored.

With eWise, account information is encrypted and stored on the consumer's own computer, and is never accessed by third parties.

``This is an absolutely critical point," says Grinberg, who was a lawyer before working with companies such as Oracle and IBM, both in Australia and Europe.

``There is no question from our perspective that what the future is about in online financial services is an increased focus on privacy and security."

Security concerns stem both from the need to reduce fraud and to give consumers a greater sense of comfort in using online services with institutions that are doing everything they can to make their systems ``private, secure and robust".

Grinberg says institutions that use Java or PKI digital certificates can be accessed via eWise software.

eWise's technology is licensed to organisations including Westpac and Shaw Stockbroking in Australia and Egg Bank in Britain, which then offer this service as an added benefit to their customers.

Egg, which claims to be the largest pure online bank in the world, achieved more than 100,000 users within the first six months. While Grinberg can't divulge the number of Westpac users, he says the number of Australian users is well in excess of 100,000.

``It's not just private customers who are beneficiaries of this. If you are an SME [small or medium enterprise], managing cash flow, debtors and accounts becomes that much easier if all of your online accounts can be seen on a single screen."

Licences have been signed with another bank and a telecommunications company in Britain and with a third organisation in Australia, but Grinberg will not divulge details as implementations are yet to be made public.

eWise was formed with a team of seven technical experts in February 2000 and the software was launched in September 2001. The company is self-funded and employs 18 people, but Grinberg says the initial years have been ``tough and challenging".

``It won't be a smooth ride," he says. ``The international market both for financial institutions and IT companies is a very tough one. Telcos are certainly struggling in terms of differentiating their services and IT budgets are under great scrutiny. But I think weve got the basics right."

Predicting that the British/European market will account for 40 to 45 per cent of its business in the next five years, eWise recently bought out the joint venture company it established with an English software development firm to penetrate the British market.

Japan, where eWise is working with ``a number of well-respected partners" including NTT Communications, is the next target. Japan and Australia should account for between 15 and 20 per cent of eWise's market in the next few years, and the United States about 40 per cent.

``We see a move to the American market as a logical evolution of the work we've done to date," Grinberg says.

``A lot of what we call first generation account aggregation, which is mostly American companies, have invested heavily in the first-generation technology where you do in fact disclose user IDs and passwords to a third party, and they then do the aggregation on your account.

``It's quite a difficult thing to radically switch tack and start developing new technology."

But Grinberg says it is the add-on applications that point the way to the future in the US and other markets.

E-marketing, mobile and wealth management applications are already available, enabling institutions to target customers with relevant information and derive further revenue streams.

``Account aggregation is a platform, then on top of that we superimpose, for example, drag and drop transaction applications that facilitate management of personal balance sheets where you manage all your assets and your liabilities on a single page.

``We see those as being key lead generators and differentiators of our technology."

The evolution of mobile phones will see user passwords stored on such devices, with ``very powerful real-time technology" enabling users to view accounts and manage financial affairs from a mobile anywhere in the world.

``We think there are some compelling logical extensions to what we've done. That's why we think the level of interest from telcos has been as robust as it has," Grinberg says. pam@kershaw.com.au

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