Question-and-Answer Session
Operator
(Operator Instructions). Our first question will come from the line of Colin Gillis from Canaccord Adams.
Colin Gillis - Canaccord Adams
Could you just give us some color about how the dislocation of some of your major customers, the pressures going on in your AIGs, some of the major banks, what that’s doing to transaction volumes, and if that’s causing concern for EPAY or if it’s creating opportunity for EPAY?
Robert A. Eberle
I think it’s creating opportunity. We haven’t had the customer that we work with be in a situation where they’ve been acquired merger, a Lehman type situation. We service 15 of the top 25 banks, but we’ve been fortunate that the organizations we work with, Bank of America for example, are winners in this process, and others that were working with SWIFT for example till now are somewhat immune from it. What we actually have seen is increased cash balances and cash revenues. What you have got is a flight to quality. One of our banks just told me that their cash balance revenues or their float revenues are up 23% over last year. Another organization we work with has a whole separate group to open new accounts because what’s happening is corporations are switching banks to make sure they are with organizations that are perceived to be safer.
So, to some degree we have been fortunate that the organizations we work with have been so solid, but then ultimately we see opportunity out of it, an example being Bank of America acquiring Merrill presents a couple of opportunities. First off, there is integration work around the payment platforms that would be utilized by the combined entity. The second opportunity is that while there is such a focus on a major integration, other areas within the bank represent opportunities for Bottomline to take those on, take them on as a project, or even run them for an organization like that. So, we have not seen any cancelation, we’ve not seen anything delayed, we’ve not seen a pipeline opportunity going away, and we actually see more opportunity around it. The last point I had mentioned, you know this Colin, but for those that aren’t familiar, what we’re doing in the cash management area is a customer facing application. So, it’s a part of the way these organizations serve their customers and drive their revenues. So, they can attract new customers, they can attract new cash balances, and they can increase fees charged for payments and other transactions processed through our software. It has not impacted us at the customer end and it certainly, I believe, has impacted us in the capital markets because we’re associated with a group of organizations that are challenged. I do believe that’s put some pressure on the stock price.
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