Warning as MS moves into finance

Forrester Research has warned financial institutions to be aware of Microsoft as the software developer steps up its online ambitions into the area of finance.

The report, entitled The Microsoft Threat, claimed the software developer's financial initiatives are not a great danger to financial operations, but its distribution and payment system ambitions pose a more serious threat to business.

Forrester highlighted Microsoft's recent moves into the online industry which saw the company set up an Investor Website. Microsoft recently joined forces with First Data Call to offer a service of electronic bill presentment and payment services and a stock price monitor system.

But the real threat to financial institutions, Forrester claimed, was from Microsoft's distribution and payment ambitions. The report singled out Carpoint, a Website that helps potential car buyers locate a dealer, and Expedia which offers online hotel reservations and car rentals.

In the long term, services such as these will help to establish Microsoft as a hub for the sale of financial products, the study predicted.