Microsoft, Intuit Propose Uniform Software Standard for Net Banking
Financial software rivals Microsoft Corp. and Intuit Inc. on Thursday proposed a unified technical standard they said will make it easier to bank over the Internet.
The proposal, also announced with CheckFree Corp., a processor of Internet transactions, is a step toward allowing customers to use any available financial management software at the financial institution of their choice when banking online.
The proposed standard is called Open Financial Exchange. The move is analogous to having technology providers agree on a standard electrical socket design and asking lamp designers to make their lamp plugs fit the standard socket.
A unified standard “represents a dramatic benefit for financial-services provides and their customers,” said Bill Harris, Intuit executive vice president.
The specifications are still being refined, and will be included in software to be released in September, the companies said.
Microsoft and Intuit have been competing to persuade banks to use their respective personal-finance software. Such software allows consumers to pay bills, balance checking accounts and perform other financial actions over the Internet. CheckFree has been competing to be the behind-the-scenes processor of Internet transactions. An agreement will not eliminate that competition, but it would let people using the various systems exchange financial information over the Internet more easily.
Microsoft shares gained $1.375 to close at $86; Intuit shares rose 12.5 cents to close at $34.75. Both stocks trade on Nasdaq.
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