Profile: S1 Corporation (SONE.O)

S1 Corporation (S1) is a global provider of customer interaction software solutions for financial and payment services. It sells its products primarily to traditional financial services providers, such as banks, credit unions, and insurance companies, as well as to transaction processors and retailers. The Company has two business segments: Enterprise and Postilion. The Enterprise segment is engaged in providing software solutions and related services that the financial institutions use to interact with their customers, including self service banking solutions, full service banking solutions. The Postilion segment represents payments processing, card management solutions, and banking solutions. Postilion’s payments processing and card management solutions provide transaction switching, device driving, and secure card issuance and life cycle management for credit, debit and prepaid cards for financial institutions and other automated teller machine (ATM) owners and deployers, retailers, merchant acquirers, and card issuers. Postilion’s banking solutions include software and related services that financial institutions use to interact with their customers including self service banking solutions FSB Solutions (FSB) brand, full service banking solutions.

Enterprise Segment

S1 Enterprise provides flexible, bank-centric solutions, and payment services that drive profitability across multiple channels and customer segments, through an open, interoperable platform. S1 Enterprise offers applications for retail and corporate banking, branch banking, and call center operations on the Enterprise platform with a common architecture, technology and database. Information generated from customer interactions is made available across multiple applications on a real-time basis, though it is produced and collected in multiple delivery channels, including the branch, call center, telephone, and Internet. S1 Application Manager is a web-based back office tool provided with S1 Enterprise applications that enables administrators to configure, maintain, and support all installed applications.

There are four product groups in S1 Enterprise: Retail Online, Treasury Online, Branch Banking and Call Center, and Insurance. The Retail Online solutions allow its customers to establish and maintain banking functionality with individuals and small businesses via the Internet or through a mobile device on a single platform. The Treasury Online solutions provide its customers the ability to provide online global cash management and trade finance solutions to large corporate customers. The Branch Banking and Call Center products provide its customers the technology necessary to carry out customer service functions within bank branch and call center environments. S1 Insurance provides software, custom software development, hosting, and other services to State Farm.

S1 Enterprise Personal Banking allows its customers to offer online banking capabilities, including personal finance management, electronic bill payment and presentment, account aggregation, external account transfers, alerts and reminders, and online self-service tools. S1 Enterprise Business Banking provides online financial solutions suited for small to mid-market business banking customers. This allows its financial institution customers to offer product packages that can satisfy the business customer segments with such features as account management and reporting, payments, foreign exchange and self-service features, including the ability to open new accounts online, report lost cards, reset passwords, stop payments, reorder checks, request check copies, and create electronic alerts. S1 Enterprise Mobile Banking and Payments provides the ability to access and manage bank account information and perform financial transactions through a mobile device. S1 AccelAccount gives financial institutions a new account opening solution that provides their prospects and customers with an improved way to open and fund new accounts. S1 Electronic Vault provides easy and secure storage of a financial institution’s customer’s important files within their own personal vault on the financial institution’s portal. S1 Enhanced Reporting provides financial institutions’ customers the ability to generate, manage, and securely receive business critical reports using standard Banking Administration Institute data. S1 Out-of-Band Authentication provides security against phishing and keystroke-logging attacks to mobile phones.

S1 Corporate Banking is built in a multilingual and multi-currency framework on the S1 Enterprise Platform and delivers payment methods, multi-factor authentication capabilities, electronic file delivery, check services, and robust information reporting. S1 Corporate Banking delivers real-time data on account balances and transactions, as well as straight-thru processing on payments from the automated clearing house (ACH) to Fedwire to the Society for Worldwide Interbank Finance Telecommunication (SWIFT). S1 Trade Finance allows a bank’s customers to manage their international buying and selling activities with one integrated system to create, process, and report on trade instruments such as letters of credit, collections, and open account transactions. S1 Trade Finance capabilities include: Import Letters of Credit, Open Account, Standbys, Guarantees, Purchase Order Processing, Document Presentation, and Documentary Collections. S1 Foreign Exchange provides payment workflow by allowing customers to obtain foreign exchange rates through a single, online solution.

S1 Enterprise’s Branch Banking and Call Center Solutions is an integrated suite of applications and modules that enable the delivery of banking services at the financial institution branch and call center. S1 Branch Banking and Call Center products include teller and platform capability with integrated channel management and cross-channel data integration. Applications in the S1 Enterprise Branch Banking and Call Center Solution include S1 Enterprise teller, S1 Enterprise sales and service Platform, S1 Enterprise call center, and S1 Enterprise Call Center. S1 Enterprise Insurance is focused on providing software, custom software development, hosting, and other services to State Farm.

Postilion Segment

Postilion payments processing and card management solutions drive consumer-generated payments for organizations of all sizes globally, through ATMs, point-of-sale (POS) terminals, interactive voice response systems, mobile phones, and the Internet. The Postilion platform acts as a payments hub, consolidating multiple card and transaction types from diverse sales channels, and creating a single customer view. Postilion supports technologies, which includes contactless cards, prepaid cards, mobile payments, expected monetary value (EMV) (global standard for credit and debit payment cards), single european payments area (SEPA), and payment card industry data security standard (PCI DSS).

Postilion for ATM Owners and Deployers drives an array of ATM terminals, whether dial-up, leased line, or functionality devices. The Postilion solution for ATM owners manages online connections to networks, card schemes, and host systems, and provides performance monitoring, back office functionality, and management information. Postilion for Retailers provides payment card processing for retailers, merchants and e-commerce operators, enabling all aspects of a payment transaction, from the point-of-sale (POS), through to the authorizer. Postilion for Card Issuers supports secure issuance and life cycle management for credit, debit, and prepaid cards. This card issuing software provides authorization and validation services, personal identification number (PIN) management, and management information. Postilion for Merchant Acquirers provides processing platform for handling card payment transactions generated at multiple sales channels, including the POS, Internet, call center, and mobile phone.

Built on the Postilion Payments Processing and Card Management platform, Postilion Banking provides community and regional banks, and credit unions in North America an end-to-end solution on a single platform for fully integrated self-service banking and payments. Postilion Retail Internet Banking provides Internet banking service for consumers, including account balance inquiries, funds transfers, bill payments, ATM personalization, account activity, personal financial management tools, and user alerts. Postilion Business Internet Banking is designed to help community banks and credit unions deliver services to small-to-medium businesses. Functions include integrated front and back office systems, multiple payment vehicles, such as domestic and SWIFT wires and ACH, targeted reporting, and entitlements. Postilion Mobile provides consumers with mobile services, such as balance inquiries, inter-account transfers, bill payments, and prepaid airtime purchases using mobile devices via short messaging service or browser-based banking. Postilion Voice Banking delivers a range of voice banking functionality, such as online and offline transaction processing, call-flow management, and voice driver management. Postilion ATM Driving powers ATM driving needs, including ATM network management, related business management, and functions. Postilion Merchant Acquiring allows financial institutions to offer POS transaction processing on behalf of their retail merchant customers, with full transaction processing, and complete management of the entire merchant transaction processing cycle. Postilion Card Management provides a range of card management services required by card issuers, such as card production, PIN management, and authorization services.

Postilion offers a range of branch banking and lending technology solutions primarily for small to medium size financial institutions in North America. The FSB applications are divided into four product groups: FSB Branch Automation, FSB Banking Call Center, FSB Marketing Center, and FSB Lending. FSB Branch Automation includes FSB Teller and FSB Sales and Services Platform. FSB Teller is a client-server based application that provides the complete set of transactions and core services necessary for the teller function, including host communications, sharing and storing of information, cumulative totals, electronic journal, transaction security and approval, and balancing aids. FSB Banking Call Center provides the customer information, sales and service capabilities, process flows, reporting, and fulfillment management specific to call center operations. FSB Marketing Center provides the ability to develop and execute marketing campaigns based on multiple segmentations of customers and prospects. It includes robust capabilities to drive alerts, awards, and promotions directly to the banks’ various delivery channels. FSB Lending provides a configurable and complete consumer, business, and credit origination software solution that delivers straight-through processing control from application, through loan booking, with support for multiple data entry channels.

Additional Solutions

S1 provides bill-pay services through third-party partnerships for all of the retail / personal Internet banking applications. In addition to licensing software, both the Enterprise and Postilion segments provide a array of services to meet the needs of their customers. The services include planning, project management, implementation, integration, and customization of customer software applications, as well as ongoing maintenance and support and application hosting.

The professional services teams in the Enterprise and Postilion segments facilitate the implementation and customization of its software solutions. S1’s professional services organizations are engaged in activities, which includes Project Management, Implementation, Custom Software Development, Integration, Educational Services, and Web Design Services. The customer support teams in the Enterprise and Postilion segments offer various levels of service to meet an organization’s support needs and budgets, including Technical Support, Software Release Management, Software Release Management, and Online Support.

S1’s hosting services provide systems outsourcing, data center hosting, operational management, and control across the range of personal, small business, and corporate Internet banking, insurance, mobile banking, and payment processing applications. The Company host S1 applications for its global and international customers in the data center facility in Norcross, Georgia, which handles more than 3.4 million end-users daily.

The Company competes with Intuit Inc, Sybase Inc., Fiserv Inc., Argo Data Resource Corporation, Fidelity National Information Services, Inc. Fundtech Ltd., ACI Worldwide, Inc., Clear2Pay, Metavante Technologies, Inc., Jack Henry and Associates, Inc., SAP, and Oracle.