Industry Exchange

Will banks acquire technology companies in 1998 and, if so, in what specific areas?"

Kathleen C. McClave

CEO

Furash & Co.

"The answer is unequivocally 'Yes' because banks recognize that being able to use and deploy technology effectively is a competitive advantage and that those who can will really win in the emerging structure of the financial services industry. They just don't have the talent inside they need to buy it."

Lawrence Cohn

svp and director of research

Ryan, Beck & Co.

"I don't think there's going to be a lot of activity in that area. Banks are buyers of technology services, but they're not technology companies per se. All of the big money center banks have venture capital investing operations, and they have been very active in that end of the business. From that standpoint, sure, I would certainly expect to see banks investing in that sector. From the point of actually acquiring the whole company I'd be real surprised."