Digital Insight undergoes company re-org; shuffles senior management
23 June 2006 | 2110 views | 0
Source: Digital Insight
Digital Insight Corp. (Nasdaq: DGIN), the leading online banking provider, today announced the formation of a new organizational structure that will maximize its flexibility and internal resources in pursuing the newest facet of the Company's growth strategy: growth via product partnerships and distribution alliances.
Digital Insight has created an internal organization headed by an executive vice president, Bob Meagher, that is solely focused on pursing product partnerships, distribution alliances and other emerging growth initiatives above and beyond the Company's primary growth strategy of driving higher adoption among its financial institution clients. The new organizational structure is designed to accelerate efforts to broaden the Company's product line by entering into partnership agreements to resell products of outside technology vendors within Digital Insight's client base. The new organizational structure also strengthens the Company's efforts to expand the distribution reach for Digital Insight products by establishing distribution alliances with core processors and other industry participants. The early success of recent product and distribution partnerships - including alliances with Metavante and CashEdge - underscores the potential of Digital Insight's partnership-focused growth initiatives.
Digital Insight Chairman, President and CEO Jeff Stiefler commented, "Our new organizational structure aligns our resources to capitalize on a large opportunity - uniquely available to Digital Insight - by establishing product and distribution partnerships for the mutual benefit of our clients and shareholders. Our market-leading distribution to 1,750 middle market banks and credit unions establishes Digital Insight as the most attractive partner for financial technology vendors seeking distribution to small and mid-size financial institutions.
"At the same time," Stiefler continued, "mid-market financial institutions increasingly require a wide range of online capabilities to remain competitive with large banks that have greater access to technology features. The new capabilities we plan to offer in partnership with technology providers into our distribution channel, in aggregate, can represent an important business line for Digital Insight over the next several years."
Bob Meagher, who will head this new business unit, joined Digital Insight during 2004 as Executive Vice President of Sales and Marketing. Since joining the Company, Meagher has played a key role in negotiating and structuring partnerships that offer important growth potential for Digital Insight's future.
Separately, CeCe Morken, Senior Vice President, Sales, and chief architect of the strategies and initiatives that have contributed to Digital Insight's record growth in sales bookings during 2005 and the first quarter of 2006, has been promoted to Executive Vice President, Sales, Marketing, Delivery and Client Support. Morken retains continued responsibility for new sales, marketing and adoption programs, and developing broader relationships with existing clients.
Transition of Duties Within EVP, Operations Role to Industry Veteran Tom Shen
The Company also announced the appointment of Tom Shen, 49, as Executive Vice President, Product, Engineering and Operations, with responsibilities that include data center operations, engineering and product development. Shen joins Digital Insight after leading profitable growth at Software Dynamics, Inc. (SDI), a provider of branch automation, teller, call center and CRM solutions to financial institutions. After founding SDI in 1982, Shen led a significant expansion of its client base to more than 1,000 financial institutions prior to the sale of SDI to S1 Corporation in 2001. Shen retired from S1 two years later.
"Tom is a proven leader, who has established himself as a trusted advisor to the Digital Insight management team over the past several months. He is a welcome and valued addition to our organization," Stiefler concluded.
Shen joined Digital Insight in a full-time operating capacity as a consultant during January 2006. In his new role, Shen assumes duties previously held by Joe McDoniel, 64, who remains with Digital Insight as an Executive Vice President and strategic adviser to Digital Insight CEO Jeff Stiefler. In his new role, McDoniel will focus on leading cross-organizational projects important to the Company's future growth potential. Digital Insight CIO Bill Kontgis will continue to play a lead role in developing and executing technology and operations strategies within the Company.