Chase Manhattan Bank went ahead with its announcement of a home banking alliance with Microsoft Corp. just days after the software giant announced it will sell its Money personal finance product to Novell Inc.
The bank intends to stay with the Money software after the planned transfer to Novell, which Microsoft negotiated at the same time that it agreed to acquire Intuit Inc. and its more popular Quicken line of personal finance programs.
Microsoft reportedly hoped to avoid antitrust action by unloading Money.
Chase, which had struck its deal with Microsoft prior to the Intuit and Novell announcements, is keeping open the possibility of other alliances with Microsoft. In dealing with the ownership change, the New York bank joins three other superregional banks that helped develop the banking and billpaying part of Money.
"The introduction of PC Banking with Microsoft Money represents a first step in what we anticipate will be an expanding and productive relationship with Microsoft and other providers of personal finance software and technology," said Donald L. Boudreau, executive vice president of Chase Manhattan.
The sale to Novell gives Chase "an opportunity to partner with yet another innovative provider of consumer software," he said.
"My guess is that Chase is saying they're going to try this proprietary approach first," with the bank's name predominant, said Richard Crone, a consultant with KPMG Peat Marwick in Los Angeles. But if Quicken proves dominant for home banking, he predicted Chase would drop the proprietary approach.
The other banks involved with Microsoft Money are weighing their options.
First National Bank of Chicago wants to stay with Money. Any changes should be unnoticeable by the customer, a spokeswoman said, and this will be made easier by not switching.
U.S. Bank of Oregon intends to form alliances with both Microsoft-Intuit and Novell.
At Michigan National Bank, officials would not say what their plans are, other than to confirm that they want to continue to offer home banking.