Agora, Softbank join for finance portal
Domestic systems integrator and financial software producer Softbank and media group Agora became the latest companies to announce they were launching a portal, although the details of what their internet site would contain were a little sketchy.
The two companies signed a letter of intent last week to develop a site focusing on personal finance. But as with a string of similar announcements in the past months made by firms looking to go online with their own portals, no details were offered.
"The general idea we have here ... is to create an online service to help people manage money," said Wanda Rapaczynski, the president of Agora. "We do not preclude business to business (e-commerce). One of the keys for us will be to focus on consumer (transactions) with banks."
She said she could give no details on the scope and nature of the financial portal because the letter of intent did not address these issues. Rapaczynski added that more details should be released in about 90 days after the two companies finalize their plans.
When asked how the site would make money and whether it would act as an independent bank, Rapaczynski was vague. "The general idea that we have is that you expand marketing services to include image ads, targeted ads and direct mail."
One analyst agreed that the companies will seek to generate revenue through advertisements. "The revenue will come through standard routes from financial advertisers," said Tom Chadwick, an IT analyst at Merrill Lynch in London. "If you have a financial portal, financial companies will want to advertise."
When asked for project details, Softbank spokesman Andrzej Grzelec said he could not answer questions over the phone.
Instead, he faxed a press release that offered no specifics about the portal or its content. Softbank intends to invest $100 million in its internet-related projects, including the financial portal, during the next three years, the release said.
Despite the lack of concrete plans, analysts expect the project to be a hit.
"You could question the ability of some of the other portals in Poland without offering some kind of product to lock in (users)," Chadwick said. "There is no loyalty (with portals) unless users have a good reason to return. Having a bank account to conduct your financial transactions (online) is the best reason to go back to the same portal."
Analysts also cited the companies' compatibility. "At the moment there are no two better companies positioned for this kind of business," said Marcin Sadlej, IT analyst at CDM Pekao Securities.
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