Pete Kight's CheckFree: Pioneering Online Bill Payments in the US
|
Code :BSM0035
|
Region : USA
|
||||
 |
 |
 |
 OR |
||
|
Pete Kight and the Inception of CheckFree In 2001, Pete Kight (Kight), was recognized as one of the 10 unsung financial heroes by Money magazine. Future Banker magazine named him the sixth most influential personality in financial services, and he also featured in Fortune magazine, where CheckFree's new e-payments functionality was named one of the "Seven Silver Bullet Technologies". Kight, the founder, Chairman and Chief Executive Officer of CheckFree Corporation was born in Ohio. His father was an advertising executive. He went to school in Bakersfield, which is located between Southern and Northern California. College seemed to be amore interesting place for himthan high school. He went to California State University in Bakersfield (CSUB) and looked for a major where he could think and be creative. He took up Philosophy as his major but he never graduated fromcollege. Kight said, "My parents were just happy to see there was ink on a high school diploma, I was a bad student. I hated high school. I fought people all the way"... Growth of CheckFree Despite getting an initial break, CheckFree did not findmany enthusiasts for electronic billing. Its customers included a handful of fitness clubs and property management companies. The banking industry, which could have been a crucial customer for its growth, showed little interest. Kight said, "I called hundreds of banks and every one said: 'You can't do this. The consumer will not pay this way', yet consumers were calling us and saying: 'Hey, I want to paymy other bills like my CompuServe bill'.".. Competitive Challenges CheckFree faces two challenges in the market. The direct competitors are Metavante, MasterCard and Online Resources that offer similar e-payment services at slightly lower prices. The second challenge is from the banks, which can develop their own technology. Citigroup and Wells Fargo are among those that have chosen the in-house option. However, the growth of the company's customer base has been strong and it haswitnessed little erosion. Revenues have increased by 75% since 2001 and net profits have quadrupled to $47 million in 2005. As of 2005, it is estimated that 31% of the US households are paying bills online and by 2010, it would increase to 52%... |
|
| For Case Books
Click Here >> For Case eBooks Click Here >> |
|
