I am working on a report for a bank that is trying to decide if they
can save money by hosting their own online banking services versus
outsourcing this service to a third party.  Today they use the
services of a company by the name of Digital Insight
http://www.digitalinsight.com/
"Digital Insight's market-leading Business Solutions provide financial
institutions the ability to package, price, deploy and administer
online business banking solutions tailored to the specific needs of
multiple market segments. By partnering with Digital Insight,
financial institutions can take advantage of our product
implementation expertise, state-of-the-art data center, on-going
support, and comprehensive product training."

The long and short of the situation is that they are paying a
considerable amount of money on a monthly basis to this company for
hosting the online banking service portion of their website (Not the
website itself). They would now like to host this service in their own
data center and cut some of their costs.  Once the system is brought
in-house their savings should be considerable.

Hoping to get lucky, hoping that someone can find a study or can
research information regarding:
1. Typical cost for hosting an online bank. (1 billion in assets; 32K members)
2. Any studies related to a bank that at one point outsourced their
online banking services and now are doing it inhouse.
3. Time frame for such a "conversion" (bringing service inhouse)
4. Cost for such a conversion.

I understand that obtaining information like this can be difficult
because of the secretive nature of financial institutions. I also
understand that there are alot of variables that can effect the cost
of such a project. Any information related to this kind of project
would be helpful. Case Studies would be ideal. Willing to tip
generously for good information.

Hi streetivy-ga,

This sounds like the type of case study / discussion that you are
looking for. It's a few years old, however, and there is also a $1500
charge to access the full 48-page study.

"Hosted Internet Banking Solutions: Ranking a Critical Banking Weapon" (Feb 2000)
"This report reviews the viability of the ASP model. The pros and cons
of providing Internet banking, as an in-house or outsourced ASP/hosted
solution, are weighed. Sixteen vendors are evaluated. Some are
original data center solutions, others are packaged solutions which
have added services from hosted/ASPs or service bureaus. IT spending
projections are given for the large, mid-tier, and community bank
market segments of North America. The case studies, one from Hibernia
National Bank and another from the Regional Bank, highlight two
different approaches to deployment."
http://www.financial-insights.com/doc.asp?docid=494

Regards,

--inquisitive-ga