UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

          [X]       QUARTERLY  REPORT  PURSUANT  TO  SECTION  13 OR 15(d) OF THE
                    SECURITIES EXCHANGE ACT OF 1934

          For the quarterly period ended SEPTEMBER 30, 1998

          [ ]       TRANSITION  REPORT  PURSUANT  TO  SECTION 13 OR 15(d) OF THE
                    SECURITIES EXCHANGE ACT OF 1934

          For the transition period from _____________ to _____________

Commission file number  000-24931


                     SECURITY FIRST TECHNOLOGIES CORPORATION
             (Exact name of registrant as specified in its charter)

               DELAWARE                                          58-2395199
     (State or other jurisdiction                             (I.R.S. Employer
   of incorporation or organization)                         Identification No.)


             3390 PEACHTREE ROAD, NE, SUITE 1700, ATLANTA, GA 30326
                    (Address of principal executive offices)
                                   (Zip Code)

                                  404/812-6300
              (Registrant's telephone number, including area code)


                                 NOT APPLICABLE
  (Former name, former address and former fiscal year, if changed last report)

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

Yes             No   X
     ---            ---


                      APPLICABLE ONLY TO CORPORATE ISSUERS

     Indicate the number of shares  outstanding of each of the issuer's  classes
of common stock, as of the latest practicable date:

Shares outstanding as of  November 2, 1998:        Common     11,474,315


<PAGE>

             SECURITY FIRST TECHNOLOGIES CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                        (IN THOUSANDS, EXCEPT SHARE DATA)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                         SEPTEMBER 30,      DECEMBER 31,
                                                                                             1998              1997
                                                                                         -------------      ------------
                                                             ASSETS
<S>                                                                                          <C>              <C>     
 Current assets:
   Cash                                                                                      $ 17,779         $  3,137
   Investment securities available for sale (amortized cost of $16,759
      at December 31, 1997)                                                                        --           16,814
   Accounts receivable, net of allowance for doubtful accounts
      of $250 at September 30, 1998 and $257 at December 31, 1997                               4,531            4,297
   Other current assets                                                                           867            1,141
                                                                                             --------         --------
            Total current assets                                                               23,177           25,389
   Premises and equipment, net                                                                  8,851            5,797
   Goodwill and purchased technology, net of accumulated amortization of
     $5,649 at September 30, 1998 and $1,368 at December 31, 1997                                 341            4,622
   Other assets                                                                                 2,510              384
                                                                                             --------         --------
            Total assets                                                                     $ 34,879         $ 36,192
                                                                                             ========         ========

                                              LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:
   Accounts payable                                                                          $  1,508         $    486
   Accrued expenses                                                                             2,681            1,550
   Accrued stock option compensation expense                                                    2,475            1,602
   Deferred revenues                                                                           12,214            9,016
                                                                                             --------         --------
            Total current liabilities                                                          18,878           12,654
                                                                                             --------         --------
 Stockholders' equity:
      Preferred stock, $0.01 par value.  Authorized
        5,000,000 shares
        Series A, convertible. Issued and outstanding 1,174,110 shares at
           September 30, 1998 and 1,251,084 at December 31, 1997                                2,583            2,679
        Series B, convertible. Issued and outstanding 749,064 shares at
           at September 30, 1998                                                               10,000               --
      Common stock, $0.01 par value.  Authorized, 60,000,000
        shares.  Issued and outstanding 11,303,344 and 10,487,245
        shares at September 30, 1998 and December 31, 1997, respectively                          113              105
      Additional paid in capital                                                               79,067           72,885
      Accumulated deficit                                                                     (75,410)         (52,035)
      Accumulated other comprehensive income:
        Net unrealized gains on investment securities available for sale                           --               55
        Cumulative foreign currency translation adjustment                                       (352)            (151)
                                                                                             --------         --------
            Total stockholders' equity                                                         16,001           23,538
                                                                                             --------         --------
            Total liabilities and stockholders' equity                                       $ 34,879         $ 36,192
                                                                                             ========         ========
</TABLE>



                                       1


<PAGE>



             SECURITY FIRST TECHNOLOGIES CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                        THREE MONTHS ENDED                   NINE MONTHS ENDED
                                                                           SEPTEMBER 30,                       SEPTEMBER 30,
                                                                 ---------------------------------   -------------------------------
                                                                       1998            1997                1998            1997
                                                                 ---------------------------------   -------------------------------
<S>                                                              <C>               <C>               <C>               <C>         
Revenues:
     Software licenses                                           $      1,069      $      1,094      $      2,508      $      2,954
     Professional services                                              4,549             1,661            10,183             4,239
     Data center                                                          927               122             1,831               236
                                                                 -------------------------------     -------------------------------
           Total revenues                                               6,545             2,877            14,522             7,429
                                                                 -------------------------------     -------------------------------
Direct costs:
     Software licenses                                                     20               391                60             1,365
     Professional services                                              2,806             1,157             6,606             3,827
     Data center                                                        1,937             1,854             5,585             5,078
                                                                 -------------------------------     -------------------------------
           Total direct costs                                           4,763             3,402            12,251            10,270
                                                                 -------------------------------     -------------------------------
           Gross margin                                                 1,782              (525)            2,271            (2,841)
                                                                 -------------------------------     -------------------------------
Operating expenses:
     Selling and marketing                                                955               992             3,163             3,163
     Product development                                                3,717             2,696            10,707             7,595
     General and adminstrative                                          1,370               991             3,810             3,458
     Depreciation and amortization                                        761               401             2,050             1,081
     Amortization of goodwill and acquisition charges                     110               346             4,281             1,033
                                                                 -------------------------------     -------------------------------
           Total operating expenses                                     6,913             5,426            24,011            16,330
                                                                 -------------------------------     -------------------------------
           Operating loss                                              (5,131)           (5,951)          (21,740)          (19,171)
Interest income                                                            52               346               442             1,116
                                                                 -------------------------------     -------------------------------
Loss from continuing operations                                        (5,079)           (5,605)          (21,298)          (18,055)
Discontinued operations:
   Loss from operations                                                (1,562)             (236)           (2,889)             (187)
   Gain on disposal                                                       812                --               812                --
                                                                 -------------------------------     -------------------------------
Loss from discontinued operations                                        (750)             (236)           (2,077)             (187)
                                                                 -------------------------------     -------------------------------
Net loss                                                         $     (5,829)     $     (5,841)     $    (23,375)     $    (18,242)
                                                                 ===============================     ===============================

Basic and diluted net loss per common share
     from continuing operations                                  $      (0.45)     $      (0.62)     $      (1.97)     $      (2.10)
Basic and diluted net loss per common
     share from discontinued operations                                 (0.07)            (0.02)            (0.19)            (0.02)
                                                                 -------------------------------     -------------------------------
Basic and diluted net loss per common share                      $      (0.52)     $      (0.64)     $      (2.16)     $      (2.12)
                                                                 ===============================     ===============================
Weighted average number of shares of
     common stock outstanding                                      11,175,737         9,060,726        10,823,323         8,596,580
                                                                 -------------------------------     -------------------------------
</TABLE>


                                       2


<PAGE>



             SECURITIY FIRST TECHNOLOGIES CORPORATION AND SUBSIDIARY
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
                                   (UNAUDITED)
                        (IN THOUSANDS, EXCEPT SHARE DATA)

<TABLE>
<CAPTION>
                                                                                                                    COMPREHENSIVE
                                                                                    SHARES           AMOUNT            INCOME
                                                                                ---------------   -------------   -----------------
<S>                                                                                 <C>                <C>               <C>       
SERIES A PREFERRED STOCK

Balance December 31, 1997                                                            1,251,084         $ 2,679
Conversion of preferred stock to common stock                                          (76,974)            (96)
                                                                                ---------------   -------------
Balance September 30, 1998                                                           1,174,110         $ 2,583
                                                                                ---------------   -------------

SERIES B PREFERRED STOCK

Balance December 31, 1997                                                                   --              --
Sale of preferred stock                                                                749,064          10,000
                                                                                ---------------   -------------
Balance September 30, 1998                                                             749,064         $10,000
                                                                                ---------------   -------------

COMMON STOCK

Balance December 31, 1997                                                           10,487,245           $ 105
Conversion of preferred stock to common stock                                           76,974               1
Sale of common stock, net of expenses                                                   92,593               1
Common stock issued upon the exercise of options                                       464,922               4
Issuance of common stock in exchange for software license                              181,610               2
                                                                                ---------------   -------------
Balance September 30, 1998                                                          11,303,344           $ 113
                                                                                ---------------   -------------

ADDITIONAL PAID-IN CAPITAL

Balance December 31, 1997                                                                              $72,885
Conversion of preferred stock to common stock                                                               95
Sale of common stock, net of expenses                                                                      969
Common stock issued upon the exercise of options                                                         1,820
Issuance of options to acquire common and preferred stock                                                1,300
Issuance of common stock in exchange for software license                                                1,998
                                                                                                  -------------
Balance September 30, 1998                                                                             $79,067
                                                                                                  -------------

ACCUMULATED DEFICIT

Balance December 31, 1997                                                                            $ (52,035)
Net loss                                                                                               (23,375)          $ (23,375)
                                                                                                  -------------
Balance September 30, 1998                                                                           $ (75,410)
                                                                                                  -------------

ACCUMULATED OTHER COMPREHENSIVE INCOME

Balance December 31, 1997                                                                                $ (96)
Changes in net unrealized gains on investment securities available for sale                                (55)                (55)
Change in cumulative foreign currency translation adjustment                                              (201)               (201)
                                                                                                  -------------      --------------
Comprehensive income                                                                                                     $ (23,631)
                                                                                                  -------------      ==============
Balance September 30, 1998                                                                              $ (352)
                                                                                                  -------------
TOTAL STOCKHOLDERS' EQUITY                                                                             $16,001
                                                                                                  =============
</TABLE>


                                       3


<PAGE>



             SECURITY FIRST TECHNOLOGIES CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                 (IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                                 NINE MONTHS ENDED
                                                                                                   SEPTEMBER 30,
                                                                                             ------------------------
                                                                                               1998          1997
                                                                                             ---------     ----------
<S>                                                                                          <C>           <C>      
 Cash flows from operating activities:
      Net loss                                                                               $(23,375)     $(18,242)
      Adjustments to reconcile net loss to net cash used in
        operating activities:
            Loss from discontinued operations                                                   2,889           187
            Depreciation and amortization including acquisition charges                         6,446         2,989
            Gain on disposal of discontinued operations                                          (812)           --
            Compensation expense for stock options                                              1,489           396
            Provision for doubtful accounts receivable                                            280            --
            Increase in accounts receivable                                                      (633)       (2,912)
            Decrease (increase) in other assets                                                    46          (748)
            Increase (decrease) in accounts payable                                             1,022          (765)
            Increase (decrease) in accrued expenses                                             1,093          (175)
            Increase in deferred revenue                                                        3,198         7,811
                                                                                             --------      --------
                Net cash used in continuing operating activities                               (8,357)      (11,459)
      Net cash provided by (used in) discontinued operations                                    3,480          (187)
                                                                                             --------      --------
                                                                                               (4,877)      (11,646)
                                                                                             --------      --------
 Cash flows from investing activities:
      Sales of investment securities available for sale                                         1,983         5,981
      Sales of banking operations                                                               1,500            --
      Purchases of investment securities                                                                     (6,235)
      Maturities of investment securities available for sale                                    8,000        12,004
      Purchases of premises and equipment                                                      (3,534)       (2,399)
                                                                                             --------      --------
                Net cash provided by investing activities                                       7,949         9,351
                                                                                             --------      --------
 Cash flows from financing activities:
      Sale of common stock, net of expenses                                                       970         4,676
      Sale of preferred stock                                                                  10,000         1,315
      Proceeds from exercise of stock options                                                     800           109
                                                                                             --------      --------
                Net cash provided by financing activities                                      11,770         6,100
                                                                                             --------      --------
 Effect of exchange rate changes on cash                                                         (200)           --
                                                                                             --------      --------
 Net increase in cash                                                                          14,642         3,805
 Cash at beginning of period                                                                    3,137         4,122
                                                                                             --------      --------
 Cash at end of period                                                                       $ 17,779      $  7,927
                                                                                             ========      ========
</TABLE>


                                       4


<PAGE>



             SECURITY FIRST TECHNOLOGIES CORPORATION AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.   BASIS OF PRESENTATION

     The  consolidated  financial  statements  include the  accounts of Security
First Technologies Corporation and its wholly-owned  subsidiary,  Security First
Technologies,   Inc.  ("S1),  (collectively,   the  "Company").  Security  First
Technologies Corporation is the successor company to Security First Network Bank
("SFNB") as a result of the  reorganization  completed  on  September  30, 1998.
Accordinly,  all historical financial information for periods prior to September
30, 1998 is that of SFNB.  Significant  intercompany  accounts and  transactions
have been eliminated in consolidation. The consolidated financial statements for
the three and nine month periods ended September 30, 1998 and 1997 are unaudited
and  do  not  include   information  or  footnotes   necessary  for  a  complete
presentation of financial  condition,  results of operations and cash flows. The
interim financial statements include all adjustments,  consisting only of normal
recurring  adjustments,  which in the opinion of  management  are  necessary  to
present fairly the Company's consolidated  financial statements.  The results of
operations  for the three  and nine  months  ended  September  30,  1998 are not
necessarily  indicative of the expected results for the year ending December 31,
1998.  The following  should be read in conjunction  with the SFNB's  historical
financial statements included in the Company's  registration  statement filed on
August 25, 1998.

     As more  fully  discussed  in note 2, the  Company  has  sold  its  banking
operations,  which  have  been  presented  as  discontinued  operations  in  the
accompanying consolidated financial statements. 

2.   DISCONTINUED   OPERATIONS  AND  SALE  OF  BANKING  OPERATIONS,   TECHNOLOGY
     LICENSING AGREEMENTS, AND SALE OF COMMON STOCK

     On  September  30,  1998,  the  Company  completed  the sale of its banking
operations  to  the  Royal  Bank  of  Canada,  through  one of  its  U.S.  based
subsidiaries  ("Royal  Bank").  Royal  bank paid $3 million in excess of the net
assets sold (including $1.5 million holdback for  indemnification  which will be
received eighteen months from the closing date). The banking operations included
substantially all of the loans and investment  securities as well as its deposit
relationships and were legally separated from the technology  operations through
the  formation  of a holding  company  and the  contribution  of $10  million in
capital. The Company recorded a gain of $812 thousand on the sale of the banking
operations.  The gain on sale  includes  a $1.3  million  charge  related to the
estimated  fair value of options to purchase the Company's  capital stock issued
to Royal Bank in connection with the sale of the banking operations. The options
give Royal Bank the right to  purchase  733,818  shares of common and  preferred
stock for an  aggregate  of $10 million at prices  ranging from $11.88 to $15.81
per share at specified periods through June 2000.

     The  banking  assets  held for sale had been  presented  net of the related
liabilities in the accompanying 1997  consolidated  balance sheet and the losses
from the banking  operations  are  reflected  in the  accompanying  consolidated
statements of operations as discontinued operations. Net interest income for the
nine month  period  ended  September  30, 1998 was $1.3 million and the net loss
excluding the gain on disposal was $2.9  million.  The increase in the loss from
discontinued operations


                                       5

<PAGE>



for the three months ended  September 30, 1998 is the result of one time charges
related to the sale of the banking operations.

     In addition to the sale of the banking  operations,  Royal Bank has entered
into technology  licensing and consulting  arrangements  with the Company for $6
million,  which  were  effective  upon  closing  of  the  sale  of  the  banking
operations.  Also,  Royal Bank purchased  92,593 shares of the Company's  common
stock for $1 million in cash on March 9, 1998.

3.   STOCK PURCHASE AGREEMENTS

     On June 29, 1998, the Company  entered into a Stock Purchase  Agreement and
other  technology  and  license  agreements  with State Farm  Mutual  Automobile
Insurance  Company  ("State  Farm").  Pursuant to the Stock Purchase  Agreement,
effective  September 30, 1998 State Farm purchased 749,064 shares of non-voting,
zero coupon  preferred  stock of the Company for $10.0  million.  The  preferred
stock is redeemable  at the option of the Company  within the first two years of
issuance. The preferred stock is convertible after two years into 535,045 shares
of common stock based on a conversion price of $18.69.

     On June 30, 1998, the Company entered into a relationship with BroadVision,
Inc.  under a Stock  Purchase  Agreement  and  other  technology  and  licensing
agreements.  Under the Stock Purchase Agreement,  BroadVision  purchased on July
15,  1998,  181,610  shares of the  Company's  common  stock by  granting to the
Company  a  license  agreement  which  gives  the  Company  the  right to resell
BroadVision's  marketing  suite of software  products by integrating the product
with S1's  software  products.  In addition,  on October 1, 1998,  the companies
exchanged  common stock,  amounting to 129,702 shares of the Company for 123,001
shares of  BroadVision,  based  upon the  average  of the  closing  price of the
respective stock for the ten business days preceding July 31, 1998.

4.   COMPREHENSIVE INCOME

     In June 1997, the Financial  Accounting  Standards  Board  ("FASB")  issued
Statement of Financial  Accounting  Standards No. 130, "Reporting  Comprehensive
Income"  ("SFAS 130").  This statement  establishes  standards for reporting and
display  of  comprehensive  income and its  components  in a full set of general
purpose financial  statements.  SFAS 130 requires all items that are required to
be recognized under accounting  standards as components of comprehensive  income
be  reported  in an  annual  financial  statement  that is  displayed  in  equal
prominence  with the other  annual  financial  statements.  For  interim  period
financial  statements,   enterprises  are  required  to  disclose  a  total  for
comprehensive income in those financial statements. Comprehensive income for the
nine months ended  September 30, 1998 and 1997 was ($23.6)  million and ($18.3),
respectively.  The term  "comprehensive  income" is used in SFAS 130 to describe
the total of all components of comprehensive income including net income. "Other
comprehensive income" refers to revenues,  expenses,  gains, and losses that are
included in  comprehensive  income but  excluded  from  earnings  under  current
accounting  standards.  Currently,  "other comprehensive income" for the Company
consists  solely of items  previously  recorded as a component of  stockholders'
equity under SFAS 115,  "Accounting  for Certain  Investments in Debt and Equity
Securities" and SFAS 52, "Foreign Currency Translation". The Company has adopted
the interim-period disclosure requirements of SFAS 130 and will


                                       6

<PAGE>



adopt the annual financial  statement  reporting and disclosure  requirements of
SFAS 130 effective December 31, 1998.

5.   RECENT ACCOUNTING PRONOUNCEMENTS

     In June 1997, the FASB issued SFAS No. 131,  "Disclosure  about Segments of
an  Enterprise  and  Related  Information."  SFAS No.  131  supercedes  SFAS 14,
"Financial  Reporting  in Segments of a Business  Enterprise",  and  establishes
standards  for the way public  business  enterprises  are to report  information
about  operating  segments in annual  financial  statements  and requires  those
enterprises to report selected financial information about operating segments in
interim financial reports issued to shareholders.  It also establishes standards
for related disclosures about products and services, geographic areas, and major
customers. The adoption of this new standard did not require significant changes
to the  Company's  current  segment  information  that is  presented in the 1997
annual financial  statements and did not impact interim financial statements for
the quarter ended September 30, 1998 as the interim disclosures are not required
in the first year of adoption.

     In October  1997,  the  Accounting  Standards  Executive  Committee  issued
Statement of Position ("SOP") No. 97-2, "Software Revenue  Recognition." SOP No.
97-2,  which  revises the rules for  accounting  for  software  transactions  by
superceding SOP 91-1, "Software Revenue Recognition," is effective for financial
statements for years beginning after December 15, 1997. The adoption of SOP 97-2
did not have a material effect on the interim financial statements for the three
and nine months ended September 30, 1998.




                                       7

<PAGE>




MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS

     The following  discussion and analysis  should be read in conjunction  with
the  consolidated  financial  statements  and notes thereto  included  elsewhere
herein and SFNB's  historical  financial  statements  included in the  Company's
registration statement filed on August 25, 1998.

General.  Security First  Technologies  Corporation is the successor  company to
Security  First  Network  Bank as a result of the  reorganization  completed  on
September  30, 1998.  S1 develops,  markets,  installs and services  integrated,
brandable Internet applications that enable financial services entities to offer
products,  services and transactions over the Internet in a secure  environment.
S1 generates revenues from licensing the Virtual Financial Manager ("VFM") suite
of  software  products,   providing   professional   services  relating  to  the
installation  and  integration  of  the  software,  and  providing  data  center
processing services and technical support to financial services entities.

     S1's  primary  product is VFM, a suite of  software  products  designed  to
provide  consumers  remote  access to all aspects of their balance sheet via the
Internet. This virtual net worth solution allows consumers to have access to all
of their financial  information on a current market  valuation basis even though
the information is maintained on separate  computer  systems  operated by banks,
brokerage firms, insurance companies,  credit card processors, etc. S1's initial
product in the suite,  "Virtual Bank Manager," ("VBM") allows end-users to view,
categorize,  update  and  generate  reports  on  account  detail,  view  balance
information and execute banking transactions over the Internet such as transfers
and bill  payments.  The  second  product  in the suite,  "Virtual  Credit  Card
Manager,"  provides customers access to an on-line credit card account statement
and allows end users to view, categorize and generate reports on account detail.
Virtual Investment  Manager,  which was released this year, allows customers the
ability to open  brokerage  accounts,  enter and  execute  stock and mutual fund
transactions and view portfolio positions.

     S1  continues  to  enhance  the  existing  VFM  suite  by  developing   new
applications  and  migrating  existing  products  to a more  efficient  software
architecture. Implementations and upgrades to VBM version 4.0 began in the third
quarter of 1998.  This release will  consolidate  all existing users of VBM onto
the same version of VBM,  which is expected to occur by the third  quarter 1999.
In  addition,  this  version  will  improve  the  operational  efficiencies  and
stability of the existing product. Along with this VBM release, S1 also released
Virtual Loan Manager  ("VLM"),  which will allow end users to view loan balances
and make loan payments.

     On June 30, 1998, the Company entered into a relationship with BroadVision,
Inc.  under a Stock  Purchase  Agreement  and  other  technology  and  licensing
agreements.  Under the Stock Purchase Agreement,  BroadVision  purchased on July
15,  1998,  181,610  shares of the  Company's  common  stock by granting to S1 a
license agreement which gives S1 the right to resell BroadVision's  "One-to-One"
marketing  suite  of  software  products.   S1  is  currently   integrating  the
BroadVision  "One-to-One"  marketing product with the VFM suite. The addition of
the "One-to-One" product will allow financial services entities to better market
their services to their  customers  using the VFM products  through  intelligent
cross-selling,  relationship  management  and content  management  capabilities.
Management anticipates that it will earn



                                       8
<PAGE>



revenues from this  arrangement  by direct sales of the  "One-to-One"  licenses,
fees for  implementing  the product and ongoing  fees for running the product in
the S1 Data Center.

     S1 is also currently  working on the  development of the next generation of
the  VFM  suite  of  products  which  will  incorporate   technology  supporting
marketing,  client services and a more scalable transaction processing operating
environment.  This  version  of VFM is  expected  to be  released  in  1999.  In
addition, development of Virtual Insurance Manager began in the third quarter of
1998.  Future products in the suite  anticipated to be developed include Virtual
Corporate Cash Manager and Virtual Bill Presentment.

     S1 derives revenues from financial  services entities primarily through one
of the following three distribution channels:

     o    By  processing  Internet  transactions  through  the S1  data  center.
          Financial  services  entities  pay a monthly  fee for  processing  and
          technical support based on the  number  of  their customers  using the
          VFM product.

     o    By  licensing  VFM to third  party data  processors.  Third party data
          processors  install VFM at their own data processing centers and offer
          the product to their financial  services  clients.  S1 earns fees from
          third party data processing centers through a monthly fee based on the
          number of customers of the financial services entity who are using the
          product.

     o    By licensing VFM directly to financial services entities which operate
          their own data centers "in-house".  S1 receives a license fee up-front
          plus receives an annual  recurring charge for ongoing product upgrades
          and  support  and  maintenance  which is based on the  greater  of the
          number of customers or a percentage of the initial license fee.

Additionally,  S1 provides professional services related to the installation and
integration of the VFM product,  including installing the product at third party
data  processing  centers and financial  services  entities and  integrating the
financial  services  entity's data  processing  systems with the S1 data center.
Customers  are  charged for these  services  primarily  on a time and  materials
basis.



                                       9

<PAGE>

          QUARTERLY FINANCIAL AND OPERATING DATA FOR THE FIVE QUARTERS
                            ENDED SEPTEMBER 30, 1998
         (IN THOUSANDS, EXCEPT PER SHARE, PER CUSTOMER AND PER FULL TIME
                             EQUIVALENT (FTE) DATA)

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
                                                      SEPT. 30,      DEC. 31,   MARCH 31,    JUNE 30,    SEPT. 30,
                                                         1997         1997        1998        1998         1998
-------------------------------------------------------------------------------------------------------------------
<S>                                                   <C>          <C>          <C>          <C>          <C>     
REVENUES:
   Software licenses                                  $  1,094     $  1,188     $    669     $    770     $  1,069
   Professional services                                 1,661        2,038        2,449        3,185        4,549
   Data center                                             122          175          310          594          927
                                                      --------     --------     --------     --------     --------
     Total revenues                                      2,877        3,401        3,428        4,549        6,545
                                                      --------     --------     --------     --------     --------
DIRECT COSTS:
   Software licenses                                       391          240           20           20           20
   Professional services                                 1,157        1,519        1,570        2,230        2,806
   Data center                                           1,854        1,869        1,823        1,825        1,937
                                                      --------     --------     --------     --------     --------
     Total direct costs                                  3,402        3,628        3,413        4,075        4,763
                                                      --------     --------     --------     --------     --------
OPERATING EXPENSES:
   Selling and marketing                                   992        1,142        1,071        1,137          955
   Product development                                   2,696        2,912        3,383        3,607        3,717
   General and adminstrative                               991        1,179        1,204        1,236        1,370
   Depreciation and amortization                           401          660          637          652          761
   Goodwill amortization and acquisition charges           346        3,492        2,088        2,083          110
                                                      --------     --------     --------     --------     --------
     Total operating expenses                            5,426        9,385        8,383        8,715        6,913
                                                      --------     --------     --------     --------     --------
     Operating loss                                     (5,951)      (9,612)      (8,368)      (8,241)      (5,131)
Interest income                                            346          365          255          135           52
                                                      --------     --------     --------     --------     --------
LOSS FROM CONTINUING OPERATIONS                       $ (5,605)    $ (9,247)    $ (8,113)    $ (8,106)    $ (5,079)
                                                      ========     ========     ========     ========     ========
NET LOSS PER COMMON SHARE FROM
   CONTINUING OPERATIONS BEFORE LOSS FROM
   NON-RECURRING CHARGES, GOODWILL
   AMORTIZATION AND ACQUISITION CHARGES               $  (0.58)    $  (0.59)    $  (0.57)    $  (0.56)    $  (0.44)
NET LOSS PER COMMON SHARE
   FROM CONTINUING OPERATIONS                         $  (0.62)    $  (0.93)    $  (0.77)    $  (0.75)    $  (0.45)
WEIGHTED AVERAGE SHARES OUTSTANDING                      9,061        9,892       10,524       10,763       11,176
CASH PROVIDED BY (USED IN)
   CONTINUING OPERATIONS                              $  4,007     $ (7,110)    $ (4,972)    $ (3,980)    $    595
CASH AND INVESTMENT SECURITIES                        $ 28,181     $ 19,951     $ 15,352     $  8,971     $ 17,779 


                      SUMMARY INCOME STATEMENT ANALYSIS (AS A PERCENTAGE OF TOTAL REVENUES)

REVENUES:
   Software licenses                                        38%          35%          20%          17%          16%
   Professional services                                    58%          60%          71%          70%          70%
   Data center                                               4%           5%           9%          13%          14%
                                                      --------     --------     --------     --------     --------
     Total revenues                                        100%         100%         100%         100%         100%
                                                      --------     --------     --------     --------     --------
DIRECT COSTS:
   Software licenses                                        14%           7%           1%           0%           0%
   Professional services                                    40%          45%          46%          49%          43%
   Data center                                              64%          55%          53%          40%          30%
                                                      --------     --------     --------     --------     --------
     Total direct costs                                    118%         107%         100%          90%          73%
                                                      --------     --------     --------     --------     --------
OPERATING EXPENSES:
   Selling and marketing                                    34%          34%          31%          25%          15%
   Product development                                      94%          86%          99%          79%          57%
   General and adminstrative                                34%          35%          35%          27%          21%
                                                      --------     --------     --------     --------     --------
LOSS FROM CONTINUING OPERATIONS                           (195%)       (272%)       (237%)       (178%)        (78%)
                                                      ========     ========     ========     ========     ========
GROSS MARGINS:
   Software licenses                                        64%          80%          97%          97%          98%
   Professional services                                    30%          25%          36%          30%          38%
   Data center                                          (1,420%)       (968%)       (488%)       (207%)       (109%)
                                                      --------     --------     --------     --------     --------
   Total gross margin                                      (18%)         (7%)          0%          10%          27%
                                                      ========     ========     ========     ========     ========
DATA CENTER REVENUE PER QUARTERLY AVERAGE CUSTOMERS   $   9.90     $   9.55     $   9.64     $  13.34     $  14.75
PROFESSIONAL SERVICES REVENUE
   PER AVERAGE PROFESSIONAL SERVICES FTE*             $ 45,000     $ 46,000     $ 52,000     $ 47,000     $ 56,000
</TABLE>
----------
*    Excludes revenue from pass through costs.

                                       10

<PAGE>



     The table below reflects  quarterly  information on the number of financial
services  entities  that  have  either  executed  a letter  of  intent or signed
contract  to use the S1  software  applications  and  technology  segregated  by
distribution  channel for the five quarterly  periods ended  September 30, 1998.
The table also shows quarterly  information on the number of financial  services
entities using VFM by distribution  channel.  All amounts represent totals as of
the end of each respective period.


<TABLE>
<CAPTION>
                                         SEPT. 30,        DEC. 31,       MARCH 31,        JUNE 30,       SEPT. 30,
                                           1997             1997           1998             1998            1998
                                         ---------        --------       ---------        --------       ---------
<S>                                        <C>             <C>             <C>             <C>             <C>   
NUMBER OF FINANCIAL INSTITUTIONS:**
   S1 Data Center                              18              17              17              17              16
   Third party data processors*                32              43              56              58              62
   Direct license in-house                      6               6               7               6               6
                                          -------         -------         -------         -------         -------
Total                                          56              66              80              81              84
                                          =======         =======         =======         =======         =======
INSTITUTIONS USING VFM THROUGH:
   S1 Data Center                               6               8              12              12              10
   Third party data processors*                 3              11              16              17              35
   Direct license in-house                     --               4               4               4               4
                                          -------         -------         -------         -------         -------
Total                                           9              23              32              33              49
                                          =======         =======         =======         =======         =======
NUMBER OF  VFM CUSTOMERS:
   S1 Data Center                          28,000          32,700          44,000          58,100          77,000
   Third party data processors*                --             400           2,000           4,000           7,500
   Direct license in-house*                    --           1,400           5,800          40,000          67,000
                                          -------         -------         -------         -------         -------
Total customers using VFM                  28,000          34,500          51,800         102,100         151,500
                                          =======         =======         =======         =======         =======
NUMBER OF VFM ACCOUNTS:
   S1 Data Center                          37,000          49,500          69,400          94,600         128,000
   Third party data processors*                --             700           4,400           8,400          15,000
   Direct license in-house*                    --           2,000          26,200         160,000         244,000
                                          -------         -------         -------         -------         -------
Total accounts processed on VFM            37,000          52,200         100,000         263,000         387,000
                                          =======         =======         =======         =======         =======
</TABLE>
----------
*    Information  based  on  discussions  with  officials  of third  party  data
     processors and direct licensees.

**   Including  subsidiaries of bank holding  companies,  the number of entities
     who have agreed to use VFM is in excess of 100 at September 30, 1998.

RESULTS OF OPERATIONS - COMPARISON OF THREE AND NINE MONTHS ENDED  SEPTEMBER 30,
1998 AND 1997

Revenues and Operating Margins

     S1's total  revenue was $6.5 million for the quarter  ended  September  30,
1998, a 127% increase from $2.9 million for the  comparable  period in 1997. The
primary  components  of third quarter 1998 revenue were $1.1 million in software
license fees, $4.5 million in professional service fees and $0.9 million in data
center fees.  Direct costs  associated  with S1's  revenues were $4.8 million in
third quarter 1998, up from $3.4 million in the comparable period in 1997.

     For the nine months ended  September 30, 1998,  total revenue  increased to
$14.5 million from $7.4 million, a 95% increase. Direct costs increased 19% from
$10.3 million for the nine months ended  September 30, 1997 to $12.3 million for
the nine  months  ended  September  30,  1998.  As a  result  of the size of the
companies S1 does  business with and the  magnitude of the  implementations  for
companies  of this size along with the  limited  amount of  capacity  to perform
implementations, in any given period a significant portion of the revenues of S1
may be attributed to one or two customers.  For the nine months ended  September
30, 1998, two


                                       11
<PAGE>



customers  represented 42% and 10% of total revenues.  For the nine months ended
September 30, 1997, two customers represented 13% and 10% of total revenues.

     Software   Licensing.   Software   license   fees,   which   accounted  for
approximately  16% of third quarter  1998's total  revenues,  were $1.1 million,
which is consistent with third quarter 1997. For the nine months ended September
30, 1998,  software  license fees were $2.5 million  compared to $3.0 million in
the corresponding  period in 1997.  Software license fees decreased between 1997
and 1998 as there were four implementations of direct licenses occurring in 1997
for which the license fee was  recognized on a percentage  of  completion  basis
over the  implementation  period.  These  implementations  were completed in the
fourth quarter of 1997.  During 1998 there have not been any new in-house direct
license  implementations  occurring as new  implementations of VFM are occurring
either  in the S1 Data  Center  or  through  third  party  data  processors.  In
September 1998, S1 received $5.0 million in license fees from Royal Bank related
to technology and licensing agreements. These license fees have been recorded as
deferred  revenue and are  recognized as revenue using the  subscription  method
over a period of three  years.  Software  license  fees  increased  in the third
quarter of 1998 as  compared  to the  second  quarter of 1998 as a result of the
recognition  of revenue from these  agreements.  In addition,  software  license
revenue  increased  between second and third quarter 1998 as a result of license
fees from third party  data processors.

     Direct costs  associated  with software  licenses were $20 thousand for the
three  months and $60  thousand  for the nine months  ended  September  30, 1998
compared to $391  thousand  for the three  months and $1.4  million for the nine
months ended  September  30, 1997.  In 1997,  the direct costs  associated  with
software  license  fees  mainly  consisted  of  the  amortization  of  purchased
technology.  Purchased  technology  included  technology  acquired  in  previous
acquisitions and software development costs paid to an independent contractor in
1995 and 1996.  These costs have been  amortized  using the straight line method
over a period of 3 years,  which is the amount  representing  the greater of the
amortization using the straight-line  method or the ratio of current revenues to
total  anticipated  revenues.  During the fourth quarter of 1997, SFNB wrote off
the  remaining   unamortized  balance  of  goodwill  and  purchased   technology
associated with  acquisitions in 1996 after  determining that there were minimal
future  cash  flows  expected  to  be  derived  from  these  intangible  assets.
Accordingly,  direct  costs for  software  license  fees  decreased in the third
quarter and year to date  periods of 1998 as  compared  to the same  periods for
1997. 

     Professional  Services.  Professional  services revenues  increased to $4.5
million in third quarter of 1998 from $1.7 million in third  quarter  1997.  For
the nine  months  ended  September  30,  1998,  professional  services  revenues
increased  $6.0  million from $4.2  million to $10.2  million.  The direct costs
associated with professional services, which are primarily personnel costs, were
$2.8 million in third quarter 1998,  resulting in a gross margin $1.7 million or
38%,  versus a gross margin in the third  quarter 1997 of $504  thousand or 30%.
For the nine months  ended  September  30, 1998,  direct costs for  professional
services were $6.6 million, resulting in a gross margin of $3.6 million compared
to direct costs of $3.8 million and a gross margin of $412 thousand for the same
period  in  1997.  The  increase  in  professional  services  revenues  and




                                       12
<PAGE>



the  improvement  in the  gross  margin  in 1998  as  compared  to  1997  can be
attributed  to the  elimination  of fixed pricing  established  for S1's initial
implementation contracts for professional services. Under these arrangements, S1
was  limited in the amount it could bill for  professional  services  to a fixed
price contained in the contract.  In addition, S1 experienced increased costs to
implement these financial services entities as a result of delays experienced in
the  early  implementations  in  integrating  VBM  with  the  customers'  legacy
mainframe  systems resulting in the accrual of losses related to these contracts
in early 1997. As S1 has gained more experience in implementing VFM, and because
S1 now prices its contracts based on time and materials,  management anticipates
that the professional  services' margin will remain  comparable to that realized
in the third quarter of 1998. In addition, the increase in revenue for the three
and nine month  periods  ended  September  30, 1998 is also  attributed  to pass
through costs related to implementations. As further discussed the section "Year
2000", S1 is in the process of converting all financial services entities to VBM
version  4.0.  These  conversions  will  require a  significant  portion of S1's
implementation  resources.  Management  is currently  evaluating  the  potential
impact on professional  services margins due to the deployment of such resources
and the potential discounting of services related to these implementations.

     Data Center.  Data center revenues,  which includes  revenues for technical
support  provided to financial  services  entities using VFM,  increased to $927
thousand in third quarter 1998 from $122  thousand in third  quarter 1997.  Data
center  revenues  increased  to $1.8  million  for the nine  months  ended  1998
compared to $236 thousand for the nine months ended 1997. The average  quarterly
revenue per billable customer increased to $14.75 in the third quarter 1998 from
$9.90 in the third  quarter  1997.  The  increase in revenues is  attributed  to
minimums now set for data processing  services and increased  maintenance  fees.
Management  anticipates that the average quarterly revenue per billable customer
will  decrease  as  financial  services  entities  increase  the number of their
customers using the product.

     Direct costs of approximately $1.9 million were associated with data center
operations  in third quarter 1998  resulting in a negative  gross margin of $1.0
million.  This  compares to direct  costs of $1.9  million and a negative  gross
margin of $1.7  million in the third  quarter  1997.  For the nine months  ended
September  30,  1998,  direct  costs  associated  with the data center were $5.6
million  compared to $5.1 million for the nine months ended  September 30, 1997.
The direct costs of the data center are  attributable to establishing  the basic
infrastructure  (composed of personnel and equipment) needed to process accounts
for the  growing  financial  services  entity  customer  base.  The  established
capacity at September 30, 1998 should be adequate to meet the anticipated growth
in the number of entities using the data center for several quarters.

     In an effort to reduce data center costs, the Company, which had previously
outsourced the operations of the data center,  ended its data center  facilities
management agreement. The Company anticipates it will experience cost savings of
approximately  $200 thousand on a quarterly  basis from both the  elimination of
the cost plus  arrangement  and the  ability  to more  efficiently  utilize  the
existing  infrastructure.  As a result of the termination of this agreement, two
financial  institutions,  which had a limited number of customers using the data
center, 



                                       13
<PAGE>



elected  not to  reenter  into  data  center  contracts  with  S1.  Since  these
institutions  were relatively  inactive,  management does not anticipate this to
have a significant impact on revenues.

     During the month of September  1998, the data center  processed,  including
SFNB, in excess of 128,000 Internet banking accounts, representing approximately
77,000 customers.  This represents an increase of 246% in the number of accounts
from  approximately  37,000 and an increase  of 175% in the number of  customers
from  approximately  28,000 for the month of  September  1997.  Based on current
costs, management anticipates that the data center will reach a break-even gross
margin when  approximately  225,000  customers are processed on a monthly basis.
Revenues  associated with the data center are directly influenced by the numbers
of financial  services  entities that are using VFM products through the S1 data
center and the product marketing efforts of these financial services entities.

Operating Expenses

     Operating  expenses  increased to $6.9  million in third  quarter 1998 from
$5.4 million in the third  quarter  1997.  The  increase in  operating  expenses
occurred in product  development  costs which increased $1.0 million and general
and administrative expenses which increased $0.4 million.

     Approximately  $3.7 million of the third  quarter 1998  operating  expenses
related  to  product  development  costs as  compared  to $2.7  million in third
quarter 1997. The increase in product  development costs is related primarily to
an  increase  in  personnel   expenses  for   additional   product   development
initiatives,  including integration of  Broadvision's One-to-One marketing suite
of software  products and development of the next generation of the VFM suite of
products.  The increase in product  development  costs  represents  management's
commitment  to  enhancing  the current VFM  products by  migrating  the existing
products to more  efficient  software  architecture  and to  developing  new VFM
applications,  including the Virtual Investment Manager and Virtual Loan Manager
which were released in 1998.

     General and  administrative  expenses  increased  from $1.0  million in the
third quarter of 1997 to $1.4 million in the third quarter of 1998. A portion of
the  increase  is  attributable  to charges  related to the  termination  of the
facilities  management  agreement  for the  data  center  discussed  above.  The
remaining  increase relates to the expanded  personnel  infrastructure to manage
the growth of the Company.

     Selling  and  marketing  expenses  for the  three  and  nine  months  ended
September  30,  1998 were  consistent  with the  amounts  for the three and nine
months ended September 30, 1997.

LIQUIDITY AND CAPITAL RESOURCES

     Total  stockholders'  equity decreased to $16.0 million as of September 30,
1998 from $23.5  million at December  31, 1997.  The  decrease in  stockholders'
equity is primarily  attributable  to the $23.4 million net loss incurred during
1998.  This  decrease was  partially  offset by the issuance of 92,593 shares of
common stock to Royal Bank for $1 million



                                       14
<PAGE>



in March 1998, the issuance of 749,064  shares of preferred  stock to State Farm
for $10.0 million on September 30, 1998,  and the issuance of 181,610  shares of
common stock to Broadvision in exchange for a license to Broadvision's product.

     As part of the Royal Bank transaction, the Company has issued to Royal Bank
four  separate  options to purchase up to an aggregate  $10.0 million in capital
stock of the Company.  The first option has a per share exercise price of $11.88
and  expires at the end of  December  1998.  The  second  option has a per share
exercise  price of $13.07 and expires at the end of June 1999.  The third option
has a per share  exercise  price of $14.38 and  expires  at the end of  December
1999.  The fourth option has a per share exercise price of $15.81 and expires at
the end of June 2000.  If exercised,  the Company will issue  733,818  shares of
common and preferred stock over the 21 month option period

     At  September  30,  1998,  the Company  had $17.8  million in cash and $4.5
million in accounts  receivable to fund future  operations.  For the nine months
ended September 30, 1998, the Company used $8.4 million in continuing operations
compared to $11.5 million in comparable period in 1997. During the quarter ended
September 30, 1998, the cash provided by continuing  operations was $0.6 million
which included $6.0 million  received from the sale of licenses to Royal Bank as
compared to cash used in operations of $4.0 million in the second  quarter 1998.
The Company  anticipates  that cash used in  operations  will  approximate  $5.0
million in the fourth  quarter  1998.  Management  believes that the Company has
adequate cash resources  available to fund operations through 1999 at which time
the Company  anticipates it will become cash flow positive from  operations.  If
additional  capital is needed, the Company intends to continue to pursue capital
raising  opportunities  similar to the Strategic Tactical Advisory  Relationship
partnership  program through which it has raised capital in the past. S1 did not
have any material  capital  commitments  at September 30, 1998,  however S1 does
expect to make  approximately  $0.6 million in capital  expenditures  during the
remainder of 1998.




                                       15
<PAGE>



YEAR 2000

     The Year 2000 issue relates to the use by many existing  computer  programs
of only two digits to identify a year in the date field. If not corrected,  many
computer  applications  could fail or create erroneous results by or at the Year
2000.  The Company  recognizes  the need to ensure that the potential  Year 2000
software failures will not adversely impact its operations.  A Company wide task
force,  with  representation  from all major business units,  was established in
1997 to  evaluate  and manage  the risks,  solutions  and cost  associated  with
addressing this issue which affects both the internal  computer  systems as well
as the software  applications  that the Company licenses to customers.  The task
force has  identified  all business  systems,  products and services,  including
third party  software used by S1 and in  conjunction  with VFM, and  determining
whether they are Year 2000 compliant. In addition, the Company has developed and
is implementing  plans of action for the systems and products which are not Year
2000 compliant.  The Company believes that based on the assessments completed to
date,  that  critical  Year 2000  issues can be  corrected.  The  failure of the
Company or third party software  which is used by S1 or in conjunction  with VBM
to be Year 2000 compliant could have a material  adverse impact on the Company's
financial position and results of operations.

     Management  has  determined  that its newest  version of the VBM  software,
which was  released  in 1998,  is Year  2000  compliant.  Complete  "end to end"
testing  is  anticipated  to  occur as part of the VBM  implementation  process.
Accordingly, management anticipates that all financial services entity customers
will be converted to the new version by third  quarter 1999.  These  conversions
will require a significant portion of S1's implementation resources.  Management
is currently  evaluating the potential  impact on professional  services margins
due to the deployment of resources and potential discounting of services related
to these implementations.

     The costs  incurred in addressing  the Year 2000 problem are being expensed
as incurred in compliance with generally accepted accounting principles. None of
these costs are expected to  materially  impact the results of operations in any
one period.  A significant  portion of the costs to be incurred are not expected
to be incremental but rather are related to current development efforts.

FORWARD-LOOKING STATEMENTS

Statements in  Management's  Discussion  and Analysis in the sections  captioned
Results of Operations - Comparison of Three and Nine Months Ended  September 30,
1998  and  1997,   Liquidity   and   Capital   Resources,   and  Year  2000  are
forward-looking  statements within the meaning of the Securities Exchange Act of
1934,  as  amended.  Actual  results,  performance  or  developments  may differ
materially from those expressed or implied by such forward-looking statements as
a result of market  uncertainties  and other factors  related to  Internet-based
businesses.  The market for Internet-based  financial services has only recently
begun to develop and market acceptance of the Company's products and services is
uncertain.  The market for the Company's  products and services is characterized
by  rapidly  changing   technology,   evolving  industry   standards,   emerging
competition   and  frequent  new  products  and  service   introductions.   Such
developments,  as well  as  unforeseen  developments  in the  Internet  commerce
industry,  could limit the marketability of the Company's  products and services
and,  thus,  have an adverse  impact on the  Company's  financial  position  and
results of operations.




                                       16
<PAGE>



 PART II -- OTHER INFORMATION

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS.

          (a)  Not applicable.

          (b)  Not applicable.

          (c)  On September 30,  1998,  State Farm Mutual  Automobile  Insurance
Company  purchased in a private placement 749,064 shares of the Company's Series
B Redeemable  Convertible Preferred Stock for an aggregate purchase price of $10
million pursuant to the Stock Purchase Agreement,  dated as of June 29, 1998, by
and among SFNB,  the  Company  and State  Farm.  The offer and sale of the stock
satisfied the  requirements  of Section 4(2) of the  Securities  Act of 1933, as
amended (the  "Securities  Act")  (transactions  by an issuer not  involving any
public offering).

          (d)  Not applicable.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

          (a) At a meeting held on September 25, 1998, the Board of Directors of
SFNB,  as sole  shareholder  of the  Company,  approved the Amended and Restated
Certificate of Incorporation of the Company.

          (b)  Not applicable.

          (c)  See (a) above.

          (d)  Not applicable.




                                       17
<PAGE>



ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

          (a)  Exhibits

Exhibit No.         Description

          27        Financial Data Schedule

          (b)  Not applicable.




                                       18
<PAGE>



                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                    SECURITY FIRST TECHNOLOGIES CORPORATION
                                                  (Registrant)

Date:    November 4, 1998                   /s/ Robert F. Stockwell
                                            ------------------------------------
                                            Robert F. Stockwell
                                            Chief Financial Officer,
                                            Treasurer and Secretary

                                            (Principal Financial Officer and
                                             Principal Accounting Officer)







                                       19
<PAGE>




                                  EXHIBIT INDEX



Exhibit No.   Description

    27        Financial Data Schedule









                                       20