Magazine article American Banker

Intuit Processing Unit Shaking Up Its Management

Magazine article American Banker

Intuit Processing Unit Shaking Up Its Management

Article excerpt

Intuit Services Corp., the leader in processing PC-initiated banking transactions, is getting new management.

Interim chief executive David Kinser acknowledged "a perception that ISC has not performed up to standards," and the people who ran the Intuit Inc. payment processing unit are gradually departing the scene.

Bruce A. Burchfield has resigned as chief executive officer but remains chairman and said he intends to remain "active in the strategy side of the company," which Intuit acquired for $7 million in 1994. Alex Sarelas, who with Mr. Burchfield co-founded the firm, then called National Payment Clearinghouse Inc., has resigned as director of technology.

President and chief operating officer Tom Daniel and information manager Erik Stillman both plan to leave within the next two months.

Intuit Inc. CEO William V. Campbell asked Mr. Kinser, a software executive from the San Francisco area, to run Intuit Services until a full time replacement is hired.

Outside observers said executives at the parent software company in Menlo Park, Calif., were dissatisfied with management's performance at Intuit Services. The problems reportedly came to a head in February and March, when some customers' bill payments went to the wrong merchants and others' payments were posted late.

Gary Arlen, a Bethesda, Md.-based expert on the on-line industry, said criticism of the services company was running so high within Intuit that "at some point, someone had to take the rap."

"That part of the business has encountered a number of problems," added Peter Rogers, an analyst in San Francisco with Bear, Stearns & Co. "It has ended up costing the company a lot more money."

But analysts also point to some positive signs. While rising transaction volume contributed to the snags earlier this year, Intuit Services has improved its ability to deal with the increase. …

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