Digital Insight, an 18-month-old company that has equipped 28 banks and credit unions with systems to offer Internet-based banking, has formed a partnership with S2 Systems, a Dallas-based software firm.

S2, a subsidiary of Stratus Computer Inc., provides electronic commerce and payments software, mostly for automated teller machine networks and branches. The deal with Digital Insight is meant to extend its reach to the Internet.

"Our typical client is already driving millions of on-line banking transactions, so why not do the same via the Internet?" said Ivan Koon, vice president of engineering and marketing for S2 Systems.

Digital Insight is striving to put more financial institutions on the Internet and to offer more transaction types. The 38-employee company recently added bill-payment capability on some of the 120 bank and credit union Web sites it hosts.

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