UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                            ------------------------


                                    FORM 10-Q

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934

       ------------------------------------------------------------------



For the Quarterly Period Ended:                          Commission File Number:
September 30, 2003                                       000-21685


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

       DELAWARE                                                  54-1820617
       (State of Incorporation)     (I.R.S. Employer Identification Number)

             11600 Sunrise Valley Drive, Suite 100, Reston, VA 20191

               (Address of Principal Executive Offices) (Zip Code)

                                 (703) 259-3000
                         (Registrant's Telephone Number)

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     X        No
    ---------       ---------

Indicate  by check mark  whether  the  registrant  is an  accelerated  filer (as
defined in Rule 12b-2 of the Exchange Act).
Yes             No     X
   ---------        ---------

The number of shares of the registrant's  Common Stock  outstanding on September
30, 2003 was approximately 51,168,000.

================================================================================



<PAGE>


                       INTELIDATA TECHNOLOGIES CORPORATION

                          QUARTERLY REPORT ON FORM 10-Q

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

PART I - FINANCIAL INFORMATION

 Item 1.  Financial Statements (unaudited)

          Condensed Consolidated Balance Sheets

          September 30, 2003 and December 31, 2002 ..........................  3

          Condensed Consolidated Statements of Operations

          Three and Nine Months Ended September 30, 2003 and 2002 ...........  4

          Condensed Consolidated Statement of Changes in Stockholders' Equity

          Nine Months Ended September 30, 2003...............................  5

          Condensed Consolidated Statements of Cash Flows

          Nine Months Ended September 30, 2003 and 2002......................  6

          Notes to Condensed Consolidated Financial Statements ..............  7

 Item 2.  Management's Discussion and Analysis of Financial Condition
          and Results of Operations ......................................... 11

 Item 3.  Quantitative and Qualitative Disclosures About Market Risk......... 18

 Item 4.  Controls and Procedures ........................................... 18


PART II - OTHER INFORMATION

 Item 6.  Exhibits and Reports on Form 8-K................................... 19

 SIGNATURES      ............................................................ 20

<PAGE>


PART I:       FINANCIAL INFORMATION
-----------------------------------
ITEM 1.       FINANCIAL STATEMENTS
----------------------------------

                       INTELIDATA TECHNOLOGIES CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                    SEPTEMBER 30, 2003 AND DECEMBER 31, 2002
                  (in thousands, except share data; unaudited)
  <TABLE>
                                                                                         2003            2002
                                                                                    ------------    ------------
<S>                                                                                <C>              <C>
ASSETS
CURRENT ASSETS

     Cash and cash equivalents                                                      $      8,546    $      5,674
     Accounts receivable, net                                                              3,451           2,974
     Other receivables                                                                       135             309
     Prepaid expenses and other current assets                                               490             802
                                                                                    ------------    ------------
         Total current assets                                                             12,622           9,759

NONCURRENT ASSETS
     Property and equipment, net                                                           1,697           2,554
     Goodwill, net                                                                        26,238          26,238
     Intangibles, net                                                                      5,240           5,780
     Other assets                                                                            211             175
                                                                                    ------------    ------------

TOTAL ASSETS                                                                        $     46,008    $     44,506
                                                                                    ============    ============
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
     Accounts payable                                                               $      2,099    $      2,081
     Accrued expenses                                                                      1,652           3,458
     Deferred revenues                                                                     1,392           1,673
     Other liabilities                                                                       258             252
     Net liabilities of discontinued operations                                               45              51
                                                                                    ------------    ------------
TOTAL CURRENT LIABILITIES                                                                  5,446           7,515
     Net liabilities of discontinued operations                                              102             200
     Other liabilities                                                                       732             337
                                                                                    ------------    ------------
TOTAL LIABILITIES                                                                          6,280           8,052
                                                                                    ------------    ------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
     Preferred stock, $0.001 par value; authorized 5,000,000 shares;
        no shares issued and outstanding                                                      --              --
     Common stock, $0.001 par value; authorized 100,000,000 shares;
        issued 51,993,000 shares in 2003 and 49,797,000 shares in 2002;
        outstanding 51,168,000 shares in 2003 and 48,991,000 shares in 2002                   52              50
     Additional paid-in capital                                                          306,859         302,833
     Treasury stock, at cost:  825,000 shares in 2003 and 806,000 shares in 2002          (2,525)         (2,473)
     Deferred compensation                                                                  (281)           (304)
     Accumulated deficit                                                                (264,377)       (263,652)
                                                                                    ------------    ------------
TOTAL STOCKHOLDERS' EQUITY                                                                39,728          36,454
                                                                                    ------------    ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                          $     46,008    $     44,506
                                                                                    ============    ============
</TABLE>

  See accompanying notes to condensed consolidated financial statements.

<PAGE>


                       INTELIDATA TECHNOLOGIES CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
                (in thousands, except per share data; unaudited)
<TABLE>


                                                             Three Months Ended                  Nine Months Ended
                                                                September 30,                      September 30,
                                                          -----------------------------   -------------------------------
                                                              2003              2002             2003             2002
                                                          -----------      -----------       -----------      -----------
<S>                                                       <C>              <C>               <C>              <C>
Revenues
   Software                                               $     22         $     183         $     660        $     704
   Professional services, recurring and termination fees     4,670             5,827            15,608           15,475
                                                          -----------      -----------       -----------      -----------
         Total revenues                                      4,692             6,010            16,268           16,179
                                                          -----------      -----------       -----------      -----------

Cost of revenues

   Software                                                     --                --                --               --
   Professional services, recurring and termination fees     1,858             2,376             5,740            6,414
                                                          -----------      -----------       -----------      -----------
         Total cost of revenues                              1,858             2,376             5,740            6,414
                                                          -----------      -----------       -----------      -----------

         Gross profit                                        2,834             3,634            10,528            9,765

Operating expenses

   General and administrative                                1,417             2,375             5,437            7,305
   Sales and marketing                                         451               793             1,329            2,547
   Research and development                                  1,369             1,933             3,946            7,106
   Amortization of intangibles                                 180               180               540              540
                                                          -----------      -----------       -----------      -----------
         Total operating expenses                            3,417             5,281            11,252           17,498
                                                          -----------      -----------       -----------      -----------

Operating loss                                                (583)           (1,647)             (724)          (7,733)
Realized loss on sales of investments                           --                --                --             (748)
Other income (expenses), net                                    16                32                (1)              87
                                                          -----------      -----------       -----------      -----------

Loss before income taxes                                      (567)           (1,615)             (725)          (8,394)
Provision for income taxes                                      --                --                --               --
                                                          -----------      -----------       -----------      -----------

Loss from continuing operations                               (567)           (1,615)             (725)          (8,394)
Discontinued operations, net of income taxes                    --                --                --               --
                                                          -----------      -----------       -----------      -----------

Net loss                                                  $   (567)        $  (1,615)        $    (725)       $  (8,394)
                                                          ===========      ===========       ===========      ===========



Basic and diluted loss per common share
   Loss from continuing operations                        $  (0.01)        $   (0.03)        $   (0.01)       $   (0.17)
   Income (loss) from discontinued operations                 0.00              0.00              0.00             0.00
                                                          -----------      -----------       -----------      -----------
   Net loss                                               $  (0.01)        $   (0.03)        $   (0.01)       $   (0.17)
                                                          ===========      ===========       ===========      ===========

Basic and diluted weighted-average
   common shares outstanding                                  50,864          49,359            49,641            48,901
                                                          ===========      ===========       ===========      ===========


     See accompanying notes to condensed consolidated financial statements.

</TABLE>

<PAGE>

                       INTELIDATA TECHNOLOGIES CORPORATION
       CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                      NINE MONTHS ENDED SEPTEMBER 30, 2003
                            (in thousands; unaudited)
<TABLE>



                                              Common Stock         Additional
                                        -------------------------   Paid-in      Treasury      Deferred     Accumulated
                                          Shares       Amount       Capital       Stock      Compensation     Deficit
                                        ----------- ------------- ------------- ----------- --------------- -------------
<S>                                     <C>         <C>           <C>           <C>         <C>             <C>

Balance at January 1, 2003                 49,797   $      50     $   302,833   $  (2,473)  $      (304)    $  (263,652)
Issuances of common stock:
   Exercises of stock options                 603           1             706           -             -               -
   Employee stock purchase plan                10           -               7           -             -               -
   Exercises of stock warrants              1,454           1           3,132           -             -               -
   Issuances of restricted stock              155           -             226           -          (226)              -
Cancellations of restricted stock             (26)          -             (45)          -            45               -
Treasury stock                                  -           -               -         (52)            -               -
Amortization of deferred compensation           -           -               -           -           204               -
Net loss                                        -           -               -           -             -            (725)

Comprehensive loss

                                        ----------- ------------- ------------- ----------- --------------- -------------

Balance at September 30, 2003              51,993   $      52     $   306,859   $  (2,525)  $      (281)    $  (264,377)
                                        =========== ============= ============= =========== =============== =============




                                          Comprehensive
                                             Loss           Total
                                        ---------------- ------------


Balance at January 1, 2003                               $  36,454
Issuances of common stock:
   Exercises of stock options                                  707
   Employee stock purchase plan                                  7
   Exercises of stock warrants                               3,133
   Issuances of restricted stock                                 -
Cancellations of restricted stock                                -
Treasury stock                                                 (52)
Amortization of deferred compensation                          204
Net loss                                  $    (725)          (725)
                                          ---------------
Comprehensive loss                        $    (725)
                                          ===============
                                                         ------------

Balance at September 30, 2003                            $  39,728
                                                         ============


</TABLE>


     See accompanying notes to condensed consolidated financial statements.


<PAGE>

                       INTELIDATA TECHNOLOGIES CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                  NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
                            (in thousands; unaudited)

<TABLE>
                                                                               2003                       2002
                                                                           --------------          -------------
<S>                                                                        <C>                           <C>

Cash flows from operating activities

     Loss from continuing operations                                       $      (725)            $   (8,394)
     Adjustments to reconcile loss from continuing operations
         to net cash used in operating activities of continuing operations:
         Realized loss on sales of investments                                      --                    748
         Amortization of intangibles                                               540                    540
         Depreciation and amortization                                             856                  1,148
         Deferred compensation expense                                             204                    682
         Loss on disposal of property and equipment                                138                      2
         Changes in certain assets and liabilities:
              Accounts receivable                                                 (477)                   708
              Other receivables                                                    174                    365
              Prepaid expenses and other current assets                            276                    252
              Accounts payable                                                      18                   (511)
              Accrued expenses                                                  (1,405)                (1,929)
              Deferred revenues                                                   (281)                  (928)
                                                                           ------------            -------------
                  Net cash used in operating
                  activities of continuing operations                             (682)                (7,317)
                                                                           ------------            -------------

     Income (loss) from discontinued operations                                     --                     --
     Change in net liabilities of discontinued operations                         (104)                  (213)
                                                                           ------------            -------------
                  Net cash used in operating activities of
                  discontinued operations                                         (104)                  (213)
                                                                           ------------            -------------

                  Net cash used in operating activities                           (786)                (7,530)
                                                                           ------------            -------------

Cash flows from investing activities

     Net proceeds from warrant exercise and sales of investments                    --                  1,718
     Purchases of property and equipment                                          (137)                  (381)
     Payments for acquisition costs for Home Account                                --                    (50)
                                                                           -----------             -------------
                  Net cash (used in) provided by investing activities             (137)                 1,287
                                                                           ------------            -------------

Cash flows from financing activities

     Proceeds from issuance of common stock                                      3,847                     38
     Payments to acquire treasury stock                                            (52)                    --
                                                                           ------------            -------------
                  Net cash provided by financing activities                      3,795                     38
                                                                           -----------             -------------

                  Increase (decrease) in cash and cash equivalents               2,872                 (6,205)

                  Cash and cash equivalents, beginning of period                 5,674                 12,026
                                                                           -----------             -------------
                  Cash and cash equivalents, end of period                 $     8,546             $    5,821
                                                                           ===========             =============
</TABLE>


     See accompanying notes to condensed consolidated financial statements.


<PAGE>


                       INTELIDATA TECHNOLOGIES CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                  NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
                                   (Unaudited)

(1)  Basis of Presentation

     The  condensed  consolidated  balance  sheet  of  InteliData   Technologies
Corporation  ("InteliData"  or the  "Company")  as of September  30,  2003,  the
related condensed  consolidated  statements of operations and cash flows for the
nine-month  periods ended September 30, 2003 and 2002, and the related condensed
consolidated  statement of changes in  stockholders'  equity for the  nine-month
period ended  September 30, 2003 presented in this Form 10-Q are  unaudited.  In
the opinion of management,  all adjustments necessary for a fair presentation of
such financial  statements have been included.  Such adjustments consist only of
normal recurring items. The condensed  consolidated balance sheet as of December
31, 2002 was derived from the Company's audited December 31, 2002 balance sheet.
Interim  results  are not  necessarily  indicative  of results  for a full year.
Certain  amounts in the prior periods have been  reclassified  to conform to the
current period presentation.

     The condensed  consolidated financial statements and notes are presented as
required by Form 10-Q, and do not contain  certain  information  included in the
Company's  annual  audited  financial  statements  and  notes.  These  financial
statements  should be read in  conjunction  with the  annual  audited  financial
statements  of the Company and the notes  thereto,  together  with  management's
discussion  and  analysis of  financial  condition  and  results of  operations,
contained in the Form 10-K for the fiscal year ended December 31, 2002.

(2)  Summary of Significant Accounting Policies

(a)  Principles of Consolidation - The consolidated financial statements include
the accounts of the Company and its wholly owned  subsidiaries after elimination
of   all   material    intercompany    balances   and   transactions.    Certain
reclassifications  have been  made to the prior  year  financial  statements  to
conform to the 2003 financial statement presentation.

(b)  Accounting Estimates -The preparation of financial statements in conformity
with accounting  principles  generally  accepted in the United States of America
requires  management to make estimates and assumptions  that affect the reported
amounts  of assets and  liabilities  and  disclosure  of  contingent  assets and
liabilities at the date of the financial  statements and the reported amounts of
revenues and expenses during the period.  Estimates include, but are not limited
to, an allowance for doubtful accounts,  an estimated fair value of net sublease
rent, a provision  for forward  loss and project  plans for the  completion  and
delivery of certain solutions. Actual results could differ from those estimates.

(c)  Revenue Recognition - The Company supplies  Internet banking and electronic
bill presentment and payment software to financial  institutions  ("FI's").  The
Company's  revenues  associated with  integrated  solutions that bundle software
products with  customization,  installation and training services are recognized
using the percentage of completion  method of accounting  based on cost incurred
as compared to estimated costs at completion.

     The Company enters into contracts for its bill payment technology software.
This software does not require  significant  customization.  Upon delivery,  the
Company either recognizes revenue ratably over the contract period for contracts
where  vendor  specific  objective  evidence  ("VSOE")  of fair  value  for post
contract  customer support ("PCS") does not exist or recognizes  revenue in full
where VSOE of fair value for PCS does exist.

     The Company  also  enters  into  multiple  element  arrangements.  Elements
typically include software,  consulting,  implementation  and PCS. PCS contracts
generally  require the  Company to provide  technical  support and  unspecified,
readily available software updates and upgrades to customers.  Revenue for these
multiple element arrangements is recognized when there is persuasive evidence of
an arrangement  and delivery to the customer has occurred,  the fee is fixed and
determinable,  and collectibility is considered  probable.  Advance payments are
<page>

recorded as deferred  revenue  until the  products  are  shipped,  services  are
delivered and all obligations are met. Currently, the Company does not have VSOE
of fair value for some of the elements within its multiple element arrangements.
Therefore,  all revenue under such arrangements is being recognized ratably over
the  term  of the PCS  contract.  Revenue  from  transactional  services,  which
includes  hosting  and  application  services  provider  ("ASP")  services,   is
recognized as transactions are processed.

     Emerging  Issues Task Force Abstract  Issue No. 00-3,  Application of AICPA
Statement  of  Position  97-2 to  Arrangements  that  Include  the  Right to Use
Software Stored on Another Entity's Hardware ("EITF 00-3"), provides guidance in
determining  whether or not the  provisions  of  Statement of Position No. 97-2,
Software  Revenue  Recognition  ("SOP  97-2"),  should  be  applied  to  hosting
arrangements.  The Company has some  contracts  where the customers  operate our
software in an ASP  environment.  The  customer may not take  possession  of the
software without incurring  significant  transition and infrastructure costs, as
well as potential  payments of fees to the Company for the  termination  of such
arrangements.  In cases  where  the  customer  has not  licensed  software  from
InteliData,  the customer must also purchase a license prior to having the right
to use the  software  in its  own  operating  environment,  in  addition  to the
aforementioned fees. In these situations, the Company applies the guidance under
EITF 00-3 and the Staff  Accounting  Bulletin No. 101,  Revenue  Recognition  in
Financial  Statements,  and recognizes the revenue  associated  with the license
and/or implementation fees ratably over the initial term of the contract.

     Additionally,  based on the EITF 00-3 guidance,  the Company concluded that
SOP 97-2  should not be applied to certain of its  contracts  and their  related
revenues  for  license  and  professional  services  were  recognized  under the
percentage of completion  method.  In addition to our  developing and delivering
the solution, the Company is entitled to transaction fees based on the number of
users and  transactions.  These transaction fees are earned based on the monthly
user counts and as transactions are processed.

(d)  Recent Accounting  Pronouncements  - In May 2003, the Financial  Accounting
Standards Board ("FASB") issued SFAS No. 150,  Accounting for Certain  Financial
Instruments  with  Characteristics  of both Liabilities and Equity ("SFAS 150"),
which requires that an issuer  classify  financial  instruments  that are within
scope of SFAS 150 as a liability.  Under prior guidance,  these same instruments
would  be  classified  as  equity.  SFAS  150 is  effective  for  all  financial
instruments  entered  into or  modified  after May 31,  2003.  Otherwise,  it is
effective  on July 1, 2003.  The  adoption  of SFAS 150 does not have a material
effect on our financial position or results of operations.

     In May 2003,  the FASB issued SFAS No. 149,  Amendment of Statement  133 on
Derivative  Instruments and Hedging  Activities  ("SFAS 149"),  which amends and
clarifies  financial  accounting  and  reporting  for  derivative   instruments,
including   certain   derivative   instruments   embedded  in  other   contracts
(collectively  referred to as derivatives) and for hedging activities under SFAS
No. 133, Accounting for Derivative Instruments and Hedging Activities.  SFAS 149
is effective for contracts entered into or modified after June 30, 2003, and for
hedging  relationships  designated after June 30, 2003. The adoption of SFAS 149
does  not have a  material  impact  on our  financial  position  or  results  of
operations.

     In  December  2002,  the FASB  issued  Statement  of  Financial  Accounting
Standard  ("SFAS") No. 148,  Accounting for Stock-Based  Compensation-Transition
and  Disclosure-an  amendment of FAS 123 ("SFAS 148").  SFAS 148 amends SFAS No.
123,   Accounting  for  Stock-Based   Compensation   ("SFAS  123"),  to  provide
alternative  methods of transition for an entity that voluntarily changes to the
fair value based method of accounting for stock-based employee compensation.  It
also  amends  the  disclosure  provisions  of  SFAS  123  to  require  prominent
disclosure  about the effects on reported  net income of an entity's  accounting
policy  decisions with respect to stock-based  employee  compensation.  SFAS 148
also  amends  APB  Opinion  No.  28,  Interim  Financial  Reporting,  to require
disclosure  about those effects in interim  financial  information.  SFAS 148 is
effective for annual and interim  periods  beginning after December 15, 2002. As
the  Company  has  elected  not to  change  to the fair  value  based  method of
accounting for  stock-based  employee  compensation,  SFAS 148 does not have any
impact on our financial position, results of operations or cash flows.

     In June 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated
with  Exit  or  Disposal  Activities  (including  Certain  Costs  Incurred  in a
Restructuring)  ("SFAS 146"), which supersedes  Emerging Issues Task Force Issue
No. 94-3,  Liability  Recognition for Certain Employee  Termination Benefits and
Other Costs to Exit an Activity ("EITF 94-3"). SFAS 146 requires  recognition of
a liability  for costs  associated  with an exit or

<page>

disposal  activity when the  liability is incurred,  rather than when the entity
commits  to an exit  plan  under  EITF  94-3.  The  provisions  of SFAS  146 are
effective for exit or disposal activities that are initiated after September 30,
2002. As of March 31, 2003,  the Company  ceased use of certain  office space in
its corporate  offices in Reston,  Virginia.  The  remaining  obligation on this
lease was approximately $1,090,000 through December 31, 2006. In accordance with
SFAS 146,  the  Company  estimated  the fair  value of net  sublease  rent to be
approximately  $465,000  over  the  remaining  term.  Accordingly,  the  Company
recorded an expense of $625,000  and a  corresponding  liability as of March 31,
2003.  As of May 1, 2003,  the Company  has a  subtenant  for this space for the
majority of the remaining lease term and the actual results of net sublease rent
could differ from the above  estimates.  As of September 30, 2003, the estimated
liability was approximately $483,000.

(e)  Goodwill and Other Intangible Assets - SFAS No. 141, Business  Combinations
("SFAS 141") requires business combinations  initiated after June 30, 2001 to be
accounted for using the purchase method of accounting, and broadens the criteria
for recording  intangible assets separate from goodwill.  SFAS No. 142, Goodwill
and Other Intangible Assets ("SFAS 142") requires the use of an amortization and
non-amortization   approach  to  account  for  purchased  goodwill  and  certain
intangibles. Under a non-amortization approach, goodwill and certain intangibles
are not to be  amortized  into  results  of  operations,  but  instead  would be
reviewed for  impairment  and written down and charged to results of  operations
only in the  periods  in which  the  recorded  value  of  goodwill  and  certain
intangibles is more than its fair value. The  amortization and  non-amortization
provisions of SFAS 142 are to be applied to all goodwill and  intangible  assets
acquired  after June 30, 2001.  The  provisions of each  statement that apply to
goodwill and  intangible  assets  acquired prior to June 30, 2001 was adopted by
the Company on January 1, 2002. As of January 1, 2002,  in accordance  with SFAS
142,  the Company  ceased  recognizing  amortization  expense on  goodwill.  The
goodwill  and  intangible  assets  consisted  of the  following  components  (in
thousands):


     As of September 30, 2003:        Goodwill      Intangible        Total
                                    ----------      ----------       --------
         Gross carrying amount      $   29,793      $    7,200       $ 36,993
         Accumulated amortization       (3,555)         (1,960)        (5,515)
                                    ----------      ----------       --------
         Net                        $   26,238      $    5,240       $ 31,478
                                    ==========      ==========       ========



     As of December 31, 2002:         Goodwill      Intangible        Total
                                    -----------     ----------       --------
         Gross carrying amount      $   29,793      $    7,200       $ 36,993
         Accumulated amortization       (3,555)         (1,420)        (4,975)
                                    ----------      ----------       --------
         Net                        $   26,238      $    5,780       $ 32,018
                                    ==========      ==========       ========

     In  accordance  with SFAS 142, the Company had six months from adoption (up
until June 30, 2002) to complete the initial test for  impairment  as of January
1, 2002,  the  adoption  date of SFAS 142.  In  accordance  with the  transition
provisions  of SFAS  No.  142,  the  Company  conducted  the  first  step of the
impairment  tests as described above. The Company assessed the fair value of its
only reporting unit by considering its projected cash flows,  comparable company
valuations,  and recent  purchase  prices paid for entities within our industry.
Given consideration of these factors,  the Company concluded that the fair value
of the  reporting  unit  exceeded  the  carrying  amount of its net assets.  The
Company is required to perform  reviews for  impairment  in future  periods,  at
least  annually,  that may  result in  future  periodic  write-downs.  Tests for
impairment between annual tests may be required if events occur or circumstances
change that would more likely than not reduce the fair value of the net carrying
amount.  As of June 30, 2003, the Company  performed the required  annual review
for impairment using the same approach and similar considerations as the initial
test. As a result,  the Company  concluded  that the fair value of the reporting
unit exceeds the carrying  amount of its net assets.  As of September  30, 2003,
the  Company is not aware of any  events or  circumstances  that could  indicate
potential impairment.

     The   estimated   aggregate    amortization    expense   related   to   the
contracts/relationships  intangible  asset for each of the next five years is as
follows (in thousands):

              Year ending December 31:
                  2003                             $    720
                  2004                                  720
                  2005                                  720
                  2006                                  720
                  2007                                  720

<page>

     The amortization of certain intangibles  continued at an annualized rate of
$720,000 for the nine-month periods ended September 30, 2003 and 2002.

(3)  Discontinued Operations

     As of September 30, 2003, the net liabilities of discontinued operations of
$147,000 relate to the telecommunications divisions. These liabilities relate to
the potential  environmental  clean up associated with  InteliData's  former New
Milford, Connecticut property. In January 2000, InteliData sold the New Milford,
Connecticut building, its only remaining asset in discontinued operations of the
telecommunications  division.  In the context of this sale, InteliData agreed to
undertake  limited  remediation of the site in accordance with applicable  state
law. The subject site is not a federal or state  Superfund  site and  InteliData
has  not  been  named  a  "potentially  responsible  party"  at  the  site.  The
remediation  plan  agreed  to  with  the  purchaser  allows  InteliData  to  use
engineering and institutional controls (e.g., deed restrictions) to minimize the
extent  and costs of the  remediation.  Further,  at the time of the sale of the
facility,   InteliData   established  a  $200,000  escrow  account  for  certain
investigation/remediation  costs.  As of September 30, 2003, this escrow account
balance remained at $200,000.  Moreover,  InteliData has obtained  environmental
insurance to pay for remediation  costs up to $6,600,000 in excess of a retained
exposure limit of $600,000. InteliData estimates its remaining liability related
to this matter and other costs to be  approximately  $147,000 and has recorded a
liability for this amount.

     The Company has engaged a legal firm and an  environmental  specialist firm
to represent it regarding this matter. The timing of the ultimate  resolution of
this  matter is  estimated  to be from two to four  years  under  the  Company's
proposed  compliance  plan,  which involves a natural  attenuation  and periodic
compliance monitoring approach.  Management does not believe that the resolution
of this  matter  will likely  have a material  adverse  effect on the  Company's
financial condition or results of operations.

(4)  Stockholders' Equity

     During July 2003, the Company issued  1,431,364  shares of its common stock
pursuant to the exercise of warrants, as amended, by institutional investors who
participated in the Company's  private placement of common stock in November and
December, 2001. The warrant exercise resulted in gross proceeds of approximately
$3,335,000.  The  placement  agent  in the  transaction  received  approximately
$200,000 in  commissions.  All of the  warrants  that were issued as part of the
2001 private placement have now been exercised.

                                   * * * * * *

<PAGE>


ITEM 2:        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
----------------------------------------------------------------
               CONDITION AND RESULTS OF OPERATIONS
               -----------------------------------

Critical Accounting Policies

     We consider the following  accounting  policies to be the most important to
our  financial  position and results of  operations or are policies that require
the exercise of significant judgment and/or estimates.

     Revenue  Recognition - We consider our revenue  recognition policy critical
to the understanding of our business  operations and results of operations.  The
Company  supplies  Internet  banking and electronic bill presentment and payment
software to financial  institutions  ("FI's"). The Company's revenues associated
with  integrated  solutions that bundle  software  products with  customization,
installation  and  training  services are  recognized  using the  percentage  of
completion method of accounting.

     The Company's bill payment technology software does not require significant
customization. Upon delivery, the Company either recognizes revenue ratably over
the contract  period for  contracts  where vendor  specific  objective  evidence
("VSOE") of fair value for post contract customer support ("PCS") does not exist
or recognizes revenue in full where VSOE of fair value for PCS does exist.

     The Company enters into multiple element  arrangements.  Elements typically
include software,  consulting,  implementation and PCS. PCS contracts  generally
require  the  Company to  provide  technical  support  and  unspecified  readily
available software updates and upgrades to customers. Revenue for these multiple
element  arrangements  is  recognized  when there is  persuasive  evidence of an
arrangement  and  delivery to the customer  has  occurred,  the fee is fixed and
determinable,  and collectibility is considered  probable.  Advance payments are
recorded as deferred  revenue  until the  products  are  shipped,  services  are
delivered and all obligations are met. Currently, the Company does not have VSOE
of fair value for some of the elements within its multiple element arrangements.
Therefore,  all revenue under such arrangements is being recognized ratably over
the  term  of the PCS  contract.  Revenue  from  transactional  services,  which
includes  hosting  and  application  services  provider  ("ASP")  services,   is
recognized as transactions are processed.

     Emerging  Issues Task Force Abstract  Issue No. 00-3,  Application of AICPA
Statement  of  Position  97-2 to  Arrangements  that  Include  the  Right to Use
Software Stored on Another Entity's Hardware ("EITF 00-3"), provides guidance in
determining  whether or not the  provisions  of  Statement of Position No. 97-2,
Software  Revenue  Recognition  ("SOP  97-2"),  should  be  applied  to  hosting
arrangements.  The Company has some  contracts  where the customers  operate our
software in an ASP  environment.  The  customer may not take  possession  of the
software without incurring  significant  transition and infrastructure costs, as
well as potential  payments of fees to the Company for the  termination  of such
arrangements.  In cases  where  the  customer  has not  licensed  software  from
InteliData,  the customer must also purchase a license prior to having the right
to use the  software  in its  own  operating  environment,  in  addition  to the
aforementioned fees. In these situations, the Company applies the guidance under
EITF 00-3 and the Staff  Accounting  Bulletin No. 101,  Revenue  Recognition  in
Financial  Statements,  and recognizes the revenue  associated  with the license
and/or implementation fees ratably over the initial term of the contract.

     Additionally,  based on the EITF 00-3 guidance,  the Company concluded that
SOP 97-2  should not be applied to certain of its  contracts  and their  related
revenue  for  license  and  professional  services  were  recognized  under  the
percentage of completion  method.  In addition to our  developing and delivering
the solution, the Company is entitled to transaction fees based on the number of
users and  transactions.  These transaction fees are earned based on the monthly
user counts and as transactions are processed.

     Estimates  at  Completion  -  Revenues  related  to some  of the  Company's
contracts  are  recognized   using  the  percentage  of  completion   method  of
accounting,   which  requires  that  we  make  estimates  and  judgments  as  to
anticipated  project  scope,  timing and costs to  complete  the  projects.  The
completion  of certain  development  efforts  are  critical  for the  Company to
perform on certain  contracts.  Delays in product  implementation or new product
development  and  product  defects  or errors  could  affect our  estimates  and
judgments. Additionally, we may experience delays when implementing our products
at customer locations,  and customers may be unable to

<page>

implement our products in the time frames and with the functionalities that they
expect or require.  The accuracy of these  estimates and judgments  could affect
our business, operations and financial condition.

     Allowance  for  Doubtful  Accounts -  Determination  of our  allowance  for
doubtful accounts requires  significant  estimates.  Financial  instruments that
potentially  subject  the Company to credit risk  consist  principally  of trade
receivables.  The Company  sells its  products  primarily  to FI's in the United
States.  The Company believes that the concentration of credit risk in its trade
receivables  is  substantially   mitigated  by  the  Company's  on-going  credit
evaluation  process  and the  financial  position  of the FI's  that are  highly
regulated. The Company does not generally require collateral from customers. The
Company  establishes  an  allowance  for  doubtful  accounts  based upon factors
surrounding the credit risk of specific  customers,  historical trends and other
information.

     A number of factors are considered in establishing the allowance including,
but  not  limited  to,  historical  collection  experience,  the  macro-economic
environment,  estimates of forecasted write-offs,  and the aging of the accounts
receivable  portfolio.  If the  financial  condition of our accounts  receivable
portfolio deteriorates, additional allowances would be required.

     Valuation of Long-Lived  Assets - On an annual basis, we review  long-lived
assets such as  identifiable  intangibles  and goodwill for impairment  whenever
events or changes in circumstances  indicate that the carrying amount may not be
recoverable.  This review  requires  us to make  estimates  of our  undiscounted
future cash flows in order to determine if our  long-lived  assets are impaired.
If the total of the  expected  undiscounted  future  cash flows is less than the
carrying  amount  of the  assets,  we are  required  to  make  estimates  of our
discounted  future cash flows in order to  calculate  a loss for the  difference
between the fair value and  carrying  value of the assets.  We make  significant
assumptions and estimates in this process  regarding matters that are inherently
uncertain,  such as  calculating  remaining  useful lives and assuming  discount
rates.  The resulting  cash flows are computed over an extended  period of time,
which  subjects  those  assumptions  and  estimates to an even larger  degree of
uncertainty.  When known and available, we also use comparable values of similar
businesses in corroborating the results from the discounted cash flows approach.
This  process  involves  making  estimates  about  matters  that are  inherently
uncertain.  Reviews for  impairment  between  annual  reviews may be required if
events occur or circumstances  change that would more likely than not reduce the
fair value of the net carrying  amount.  While we believe that our estimates are
reasonable,  different  assumptions  regarding such cash flows could  materially
affect our valuation.

     Depreciation  of  Fixed  Assets  -  The  Company's  business  requires  our
investment in office and computer  equipment to facilitate  certain research and
development  activities  and to support the operations in serving our customers.
We record these assets,  which in management's opinion extend the useful life of
the underlying  asset,  at cost and  depreciate the assets over their  estimated
useful lives. We  periodically  reassess the economic life of these elements and
make  adjustments  to  these  useful  lives  using,  among  others,   historical
experience,  capacity  requirements,  and  assessments of new product and market
demands.  When these factors  indicate certain elements may not be useful for as
long as  anticipated,  we depreciate the remaining book value over the remaining
useful life.  Further,  the timing and deployment of any new technologies  could
affect the estimated lives of our assets,  which could have significant  impacts
on results of operations in the future.

     Recent  Accounting  Pronouncements - In May 2003, the Financial  Accounting
Standards Board ("FASB") issued SFAS No. 150,  Accounting for Certain  Financial
Instruments  with  Characteristics  of both Liabilities and Equity ("SFAS 150"),
which requires that an issuer  classify  financial  instruments  that are within
scope of SFAS 150 as a liability.  Under prior guidance,  these same instruments
would  be  classified  as  equity.  SFAS  150 is  effective  for  all  financial
instruments  entered  into or  modified  after May 31,  2003.  Otherwise,  it is
effective  on July 1, 2003.  The  adoption  of SFAS 150 does not have a material
effect on our financial position or results of operations.

     In May 2003,  the FASB issued SFAS No. 149,  Amendment of Statement  133 on
Derivative  Instruments and Hedging  Activities  ("SFAS 149"),  which amends and
clarifies  financial  accounting  and  reporting  for  derivative   instruments,
including   certain   derivative   instruments   embedded  in  other   contracts
(collectively  referred to as derivatives) and for hedging activities under SFAS
No. 133, Accounting for Derivative Instruments and Hedging Activities.  SFAS 149
is effective for contracts entered into or modified after June 30, 2003, and for
hedging  relationships  designated after June 30, 2003. The adoption of SFAS 149
does  not have a  material  impact  on our  financial  position  or  results  of
operations.

<PAGE>

     In  December  2002,  the FASB  issued  Statement  of  Financial  Accounting
Standard  ("SFAS") No. 148,  Accounting for Stock-Based  Compensation-Transition
and  Disclosure-an  amendment of FAS 123 ("SFAS 148").  SFAS 148 amends SFAS No.
123,   Accounting  for  Stock-Based   Compensation   ("SFAS  123"),  to  provide
alternative  methods of transition for an entity that voluntarily changes to the
fair value based method of accounting for stock-based employee compensation.  It
also  amends  the  disclosure  provisions  of  SFAS  123  to  require  prominent
disclosure  about the effects on reported  net income of an entity's  accounting
policy  decisions with respect to stock-based  employee  compensation.  SFAS 148
also  amends  APB  Opinion  No.  28,  Interim  Financial  Reporting,  to require
disclosure  about those effects in interim  financial  information.  SFAS 148 is
effective for annual and interim  periods  beginning after December 15, 2002. As
the  Company  has  elected  not to  change  to the fair  value  based  method of
accounting for  stock-based  employee  compensation,  SFAS 148 does not have any
impact on our financial position, results of operations or cash flows.

     In June 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated
with  Exit  or  Disposal  Activities  (including  Certain  Costs  Incurred  in a
Restructuring)  ("SFAS 146"), which supersedes  Emerging Issues Task Force Issue
No. 94-3,  Liability  Recognition for Certain Employee  Termination Benefits and
Other Costs to Exit an Activity ("EITF 94-3"). SFAS 146 requires  recognition of
a liability  for costs  associated  with an exit or disposal  activity  when the
liability is incurred, rather than when the entity commits to an exit plan under
EITF  94-3.  The  provisions  of SFAS 146 are  effective  for  exit or  disposal
activities  that are initiated  after  September 30, 2002. As of March 31, 2003,
the  Company  ceased use of certain  office  space in its  corporate  offices in
Reston,  Virginia.  The  remaining  obligation  on this lease was  approximately
$1,090,000  through  December 31, 2006. In accordance with SFAS 146, the Company
estimated the fair value of net sublease rent to be approximately  $465,000 over
the remaining term. Accordingly, the Company recorded an expense of $625,000 and
a  corresponding  liability as of March 31, 2003. As of May 1, 2003, the Company
has a subtenant for this space for the majority of the remaining  lease term and
the actual  results of net sublease rent could differ from the above  estimates.
As of September 30, 2003, the estimated liability was approximately $483,000.

Results of Operations for the Three Months Ended September 30, 2003 and 2002

     The  following   represents   the  results  of  operations  for  InteliData
Technologies Corporation for the three months ended September 30, 2003 and 2002.
Such  information  should  be read in  conjunction  with the  interim  financial
statements and the notes thereto in Part I, Item 1 of this Quarterly Report.

Revenues

     The Company's  third quarter  revenues were  $4,692,000 in 2003 compared to
$6,010,000  in 2002,  a decrease of  $1,318,000.  The decrease was a result of a
decrease in professional services,  recurring and termination fees of $1,157,000
and a decrease in software  revenues of  $161,000.  During the third  quarter of
2003,  the Company  generated  $22,000 of software  revenues and  $4,670,000  of
professional services,  recurring and termination fees. During the third quarter
of 2002,  software revenues were $183,000 and professional  services,  recurring
and termination fees were $5,827,000.

     The decrease in professional  services,  recurring and termination  fees in
the third  quarter of 2003  compared to the third  quarter of 2002 was primarily
due to the timing of  completion  of  deliveries  of  professional  services and
implementations  and to the decrease in the recurring revenue resulting from the
termination  of  clients  that  were  using the  Company's  Canopy  Banking  ASP
services.  The  decrease  in  software  revenues  in the third  quarter  of 2003
compared to the third  quarter of 2002 was primarily due to the timing of system
deliveries.

Cost of Revenues and Gross Profit

     The Company's  cost of revenues  decreased  $518,000 to $1,858,000  for the
third  quarter  of 2003 from  $2,376,000  for the  third  quarter  of 2002.  The
decrease was primarily  due to a decrease in service  provider  costs  resulting
from contract renegotiations and changes in service providers.

     Overall gross profit margin was 60% for the third quarter of 2003 and 2002.
The Company  anticipates  that gross profit  margins may fluctuate in the future
due  to  changes  in  product  mix  and  distribution,   outsourcing

<page>

activities associated with an ASP business model,  competitive pricing pressure,
the introduction of new products, and changes in volume.

General and Administrative

     General and  administrative  expenses  decreased $958,000 to $1,417,000 for
the third quarter of 2003 from  $2,375,000  for the third  quarter of 2002.  The
decrease was primarily  attributable to the Company's reduction of corporate and
administrative  expenses that resulted from the continued evaluation of on-going
cost  structures.  The Company  plans to  continually  assess its  operations to
manage its expenses and infrastructures in light of anticipated business levels.

Sales and Marketing

     Sales and marketing  expenses  decreased $342,000 to $451,000 for the third
quarter of 2003 from $793,000 for the third quarter of 2002.  This was primarily
attributable  to  decreases  in the number of selling and  marketing  employees,
travel and outside  professional  consulting  expenses  that  resulted  from the
continued  evaluation  of  on-going  cost  structures.   The  Company  plans  to
continually assess its operations to manage its expenses and  infrastructures in
light of anticipated business levels.

Research and Development

     Research and  development  costs  decreased  $564,000 to $1,369,000 for the
third  quarter  of 2003 from  $1,933,000  for the  third  quarter  of 2002.  The
decrease was primarily  attributable to the Company's  reduction of research and
development  expenses that  resulted  from the continued  evaluation of on-going
cost structures.  The Company incurs research and development expenses primarily
in  developing  the  next  generation,   open  standards-based   InteliWorks(TM)
Enterprise  Payment  Solution.  The  Company  plans to  continually  assess  its
operations to manage its expenses and  infrastructures  in light of  anticipated
business levels.

Amortization of Goodwill and Intangibles

     Statement of Financial  Accounting  Standards  No. 142,  Goodwill and Other
Intangible  Assets ("SFAS 142"),  requires the Company to not amortize  goodwill
and certain  intangibles  into  results of  operations,  but instead the Company
would review these assets for  impairment.  The assets would be written down and
impairment  losses would be charged to results of operations only in the periods
in which the recorded  values are  determined to be more than their fair values.
As of  January  1,  2002,  in  accordance  with SFAS  142,  the  Company  ceased
recognizing  amortization  expense  on  goodwill.  The  amortization  of certain
intangibles continues at an annualized rate of $720,000 for 2003 and 2002.

     In  accordance  with SFAS 142, the Company had six months from adoption (up
until June 30, 2002) to complete the initial test for  impairment  as of January
1, 2002,  the  adoption  date of SFAS 142.  In  accordance  with the  transition
provisions  of SFAS  No.  142,  the  Company  conducted  the  first  step of the
impairment tests. The Company assessed the fair value of its only reporting unit
by considering  its projected cash flows,  comparable  company  valuations,  and
recent   purchase   prices  paid  for  entities   within  our  industry.   Given
consideration of these factors, the Company concluded that the fair value of the
reporting  unit exceeded the carrying  amount of its net assets.  The Company is
required to perform reviews for impairment in future periods, at least annually,
that may result in future  periodic  write-downs.  Tests for impairment  between
annual tests may be required if events occur or circumstances  change that would
more likely  than not reduce the fair value of the net  carrying  amount.  As of
June 30, 2003, the Company  performed the required  annual review for impairment
using the same  approach and similar  consideration  as the initial  test.  As a
result,  the Company concluded that the fair value of the reporting unit exceeds
the carrying amount of its net assets.  As of September 30, 2003, the Company is
not  aware  of  any  events  or  circumstances  that  could  indicate  potential
impairment.

Other Income

     Other  income  (expense),  primarily  interest  income  and other  expenses
including  state and local  taxes,  decreased  $16,000 to $16,000  for the third
quarter of 2003 from  $32,000  for the third  quarter of 2002.  The  decrease is
primarily associated with decreased levels of interest income.


<PAGE>


Weighted-Average Common Shares Outstanding and Basic and Diluted Loss Per Common
Share

     The basic and diluted  weighted-average common shares outstanding increased
to 50,864,000 for the third quarter of 2003 compared to 49,359,000 for the third
quarter of 2002.  The  increase  resulted  primarily  from the issuance of stock
awards,  issuance of stock pursuant to the exercises of stock warrants and stock
options, and stock purchases under the Employee Stock Purchase Plan.

     Losses from  continuing  operations  were $567,000 and  $1,615,000  for the
three-month periods ended September 30, 2003 and 2002, respectively, while there
was no gain or loss from  discontinued  operations in either period.  Net losses
were $567,000 and $1,615,000 for 2003 and 2002, respectively. As a result of the
foregoing,  basic and diluted net loss per common  share was $0.01 for the third
quarter of 2003  compared to a basic and  diluted  net loss per common  share of
$0.03 for the third quarter of 2002.

Results of Operations for the Nine Months Ended September 30, 2003 and 2002

     The  following   represents   the  results  of  operations  for  InteliData
Technologies  Corporation for the nine months ended September 30, 2003 and 2002.
Such  information  should  be read in  conjunction  with the  interim  financial
statements and the notes thereto in Part I, Item 1 of this Quarterly Report.

Revenues

     The Company's  revenues for the first nine months were  $16,268,000 in 2003
compared to  $16,179,000  for 2002,  an increase of $89,000.  The increase was a
result of an increase in professional  services,  recurring and termination fees
of $133,000  and a decrease in  software  revenues of $44,000.  During the first
nine months of 2003,  the Company  generated  $660,000 of software  revenues and
$15,608,000 of professional services, recurring and termination fees. During the
first nine months of 2002,  software  revenues  were  $704,000 and  professional
services, recurring and termination fees were $15,475,000.

     The increase in professional  services,  recurring and termination  fees in
the first nine  months of 2003  compared  to the first  nine  months of 2002 was
primarily due to increases in the professional services billing rates and hours,
offset by the decrease in the recurring  revenue  resulting from the termination
of clients  that were using the  Company's  Canopy  Banking  ASP  services.  The
decrease in software  revenues in the first nine months of 2003  compared to the
first nine months of 2002 was primarily due to the timing of system deliveries.

Cost of Revenues and Gross Profit

     The Company's  cost of revenues  decreased  $674,000 to $5,740,000  for the
first nine months of 2003 from $6,414,000 for the first nine months in 2002. The
decrease was primarily  due to a decrease in service  provider  costs  resulting
from contract renegotiations and changes in service providers.

     Overall gross profit margins  increased to 65% for the first nine months of
2003 from 60% for the first nine months of 2002.  The  increase in gross  profit
margin was  attributable to increases in professional  services  revenue coupled
with  the  decrease  in  cost  of  revenues  as  discussed  above.  The  Company
anticipates that gross profit margins may fluctuate in the future due to changes
in product mix and distribution,  outsourcing  activities associated with an ASP
business model,  competitive pricing pressure, the introduction of new products,
and changes in volume.

<page>

General and Administrative

     General and administrative  expenses decreased $1,868,000 to $5,437,000 for
the first nine months of 2003 from $7,305,000 for the first nine months of 2002.
The decrease was primarily  attributable to the Company's reduction of corporate
and  administrative  expenses that  resulted  from the  continued  evaluation of
on-going cost structures. The Company plans to continually assess its operations
to manage its  expenses and  infrastructures  in light of  anticipated  business
levels.

Sales and Marketing

     Sales and marketing  expenses  decreased  $1,218,000 to $1,329,000  for the
first nine  months of 2003 from  $2,547,000  for the first nine  months of 2002.
This was  primarily  attributable  to  decreases  in the number of  selling  and
marketing employees,  travel and outside  professional  consulting expenses that
resulted from the continued evaluation of on-going cost structures.  The Company
plans  to  continually   assess  its  operations  to  manage  its  expenses  and
infrastructures in light of anticipated business levels.

Research and Development

     Research and development  costs decreased  $3,160,000 to $3,946,000 for the
first nine months of 2003 from $7,106,000 for the first nine months of 2002. The
decrease was primarily  attributable to the Company's  reduction of research and
development  expenses that  resulted  from the continued  evaluation of on-going
cost structures.  The Company incurs research and development expenses primarily
in  developing  the  next  generation,   open  standards-based   InteliWorks(TM)
Enterprise  Payment  Solution.  The  Company  plans to  continually  assess  its
operations to manage its expenses and  infrastructures  in light of  anticipated
business levels.

Amortization of Goodwill and Intangibles

     Statement of Financial  Accounting  Standards  No. 142,  Goodwill and Other
Intangible  Assets ("SFAS 142"),  requires the Company to not amortize  goodwill
and certain  intangibles  into  results of  operations,  but instead the Company
would review these assets for  impairment.  The assets would be written down and
impairment  losses would be charged to results of operations only in the periods
in which the recorded  values are  determined to be more than their fair values.
As of  January  1,  2002,  in  accordance  with SFAS  142,  the  Company  ceased
recognizing  amortization  expense  on  goodwill.  The  amortization  of certain
intangibles continues at an annualized rate of $720,000 for 2003 and 2002.

     In  accordance  with SFAS 142, the Company had six months from adoption (up
until June 30, 2002) to complete the initial test for  impairment  as of January
1, 2002,  the  adoption  date of SFAS 142.  In  accordance  with the  transition
provisions  of SFAS  No.  142,  the  Company  conducted  the  first  step of the
impairment tests. The Company assessed the fair value of its only reporting unit
by considering  its projected cash flows,  comparable  company  valuations,  and
recent   purchase   prices  paid  for  entities   within  our  industry.   Given
consideration of these factors, the Company concluded that the fair value of the
reporting  unit exceeded the carrying  amount of its net assets.  The Company is
required to perform reviews for impairment in future periods, at least annually,
that may result in future  periodic  write-downs.  Tests for impairment  between
annual tests may be required if events occur or circumstances  change that would
more likely  than not reduce the fair value of the net  carrying  amount.  As of
June 30, 2003, the Company  performed the required  annual review for impairment
using the same  approach and similar  consideration  as the initial  test.  As a
result,  the Company concluded that the fair value of the reporting unit exceeds
the carrying amount of its net assets.  As of September 30, 2003, the Company is
not  aware  of  any  events  or  circumstances  that  could  indicate  potential
impairment.

Realized and Unrealized Gains on Investments

     As part of the January 20, 2000 merger between Home Financial Network, Inc.
("HFN") and Sybase, Inc. ("Sybase"),  InteliData received certain  consideration
in exchange for its approximate  25% ownership  interest in HFN. As part of this
consideration,  the Company  received  640,000  "warrant units" with an exercise
price of $2.60 per warrant unit. Upon exercise of each warrant unit, the Company
was  entitled to receive  $1.153448 in cash and 0.34794  share of Sybase  common
stock.

<page>

     Statement  of  Financial  Accounting  Standards  No.  133,  Accounting  for
Derivative   Instruments  and  Hedging  Activities  ("SFAS  133"),   establishes
accounting and reporting  standards for derivative  instruments  and for hedging
activities by requiring that  derivatives be recognized in the balance sheet and
measured at fair value. The Company accounted for its investment in the warrants
to purchase Sybase common stock under SFAS 133.

     SFAS 133 requires that derivative  financial  instruments,  such as forward
currency exchange  contracts,  interest rate swaps and the Company's warrants to
purchase Sybase stock, be recognized in the financial statements and measured at
fair value regardless of the purpose or intent for holding them.  Changes in the
fair  value  of  derivative   financial   instruments   are  either   recognized
periodically in income or shareholders'  equity (as a component of comprehensive
income),  depending on whether the  derivative is being used to hedge changes in
fair value or cash flows.  During June 2002,  the Company  exercised  all of its
640,000  warrants  units to purchase  Sybase common stock and sold the resulting
223,000 shares of Sybase common stock.  The Company  recorded a loss of $748,000
as a result of the sales of investments.

Other Income

     Other  income  (expense),  primarily  interest  income  and other  expenses
including  state and local taxes,  decreased  $88,000 to ($1) for the first nine
months of 2003 from  $87,000 for the first nine months of 2002.  The decrease is
primarily associated with decreased levels of interest income.

Weighted-Average Common Shares Outstanding and Basic and Diluted Loss Per Common
Share

     The basic and diluted  weighted-average common shares outstanding increased
to 49,641,000  for the first nine months of 2003 compared to 48,901,000  for the
first nine months of 2002. The increase resulted  primarily from the issuance of
stock award,  issuance of stock  pursuant to the exercises of stock warrants and
stock options, and stock purchases under the Employee Stock Purchase Plan.

     Losses from  continuing  operations  were $725,000 and  $8,394,000  for the
nine-month periods ended September 30, 2003 and 2002, respectively,  while there
was no gain or loss from  discontinued  operations in either period.  Net losses
were $725,000 and $8,394,000 for 2003 and 2002, respectively. As a result of the
foregoing,  basic and diluted net loss per common  share was $0.01 for the first
nine months of 2003 compared to a basic and diluted net loss per common share of
$0.17 for the first nine months of 2002.

Liquidity and Capital Resources

     During  the  first  nine  months  of  2003,  the  Company's  cash  and cash
equivalents  increased by  $2,872,000.  At September  30, 2003,  the Company had
$8,546,000 in cash and cash  equivalents,  $7,176,000 of working capital with no
long-term debt, and $39,728,000 in stockholders' equity. The Company's principal
needs for cash in the first  nine  months  of 2003  were for  funding  operating
losses and changes in working capital.

     The Company's cash requirements for operating  activities in the first nine
months of 2003 were financed primarily by cash and cash equivalents on hand.

     Net cash used in investing  activities in the first nine months of 2003 was
$137,000 for the purchases of property and equipment.

     Financing  activities  provided  net cash of  $3,795,000  in the first nine
months of 2003 and  consisted of  $3,847,000  from the issuance of the Company's
common stock  through stock warrant  exercises,  stock option  exercises and the
Employee  Stock  Purchase  Plan,  offset by $52,000  related to payments made to
acquire treasury stock.

     During July 2003, the Company issued  1,431,364  shares of its common stock
pursuant to the exercise of warrants, as amended, by institutional investors who
participated in the Company's  private placement of common stock in November and
December, 2001. The warrant exercise resulted in gross proceeds of approximately

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$3,335,000.  The  placement  agent  in the  transaction  received  approximately
$200,000 in  commissions.  All of the  warrants  that were issued as part of the
2001 private placement have now been exercised.

     Based on the Company's  current  capital levels and its  assumptions  about
future  operating  results,  the Company  believes that it will have  sufficient
resources  to fund  existing  operating  plans  for the  remainder  of 2003  and
throughout  2004.  However,  if actual  results differ  materially  from current
assumptions,  the Company may not have sufficient capital resources and may have
to modify  operating  plans and/or seek  additional  capital  resources.  If the
Company  engages  in  efforts  to  obtain  additional  capital,  it can  make no
assurances  that  these  efforts  will be  successful  or that the terms of such
funding would be beneficial to the common stockholders.

Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private
Securities Litigation Reform Act of 1995

     The  information   contained  in  this  report   includes   forward-looking
statements,  the  realization of which may be impacted by the factors  discussed
below.  The  forward-looking  statements  are made  pursuant  to the safe harbor
provisions of the Private Securities  Litigation Reform Act of 1995 (the "Act").
This report  contains  forward-looking  statements that are subject to risks and
uncertainties,  including,  but not limited to, our ability to continue  funding
operating  losses,  our ability to manage our expenses in line with  anticipated
business levels, the ability of the Company to complete product  implementations
in required  time frames and the  Company's  ability to increase  its  recurring
revenues  from its ASP  business  model,  the  Company's  ability  to retain key
customers  and to  increase  revenue  from  existing  customers,  the  impact of
competitive  products,  pricing  pressure,  product demand and market acceptance
risks,  pace of  consumer  acceptance  of Internet  banking and  reliance on the
Company's bank clients to increase usage of Internet banking by their customers,
the effect of general economic  conditions on the financial  services  industry,
mergers and  acquisitions,  risk of integration  of the Company's  technology by
large  software  companies,  the ability of financial  institution  customers to
implement  applications in the  anticipated  time frames or with the anticipated
features,  functionality  or benefits,  reliance on key strategic  alliances and
newly  emerging  technologies,  the  ability  of the  Company  to  leverage  its
relationships  with third  parties into new business  opportunities  in the EBPP
market,  the on-going  viability  of the  mainframe  marketplace  and demand for
traditional mainframe products, the ability to attract and retain key employees,
the availability of cash for long-term growth, product obsolescence,  ability to
reduce product costs,  fluctuations in operating results,  delays in development
of  highly  complex  products  and  other  risks  detailed  from time to time in
InteliData  filings with the Securities and Exchange  Commission,  including the
risk  factors  disclosed  in the  Company's  Form 10-K for the fiscal year ended
December 31, 2002. These risks could cause the Company's actual results for 2003
and beyond to differ  materially  from those  expressed  in any  forward-looking
statements made by, or on behalf of,  InteliData.  The foregoing list of factors
should not be construed as exhaustive or as any admission regarding the adequacy
of disclosures made by the Company prior to the date hereof or the effectiveness
of said Act.  InteliData is not under any obligation (and expressly disclaims an
obligation)  to update or alter its  forward-looking  statements,  whether  as a
result of new information or otherwise.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
-------------------------------------------------------------------

     The Company currently has no long-term debt and is not currently engaged in
any transactions that involve foreign  currency.  The Company does not engage in
hedging activities.

ITEM 4.  CONTROLS AND PROCEDURES
--------------------------------

(a)  EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

     Pursuant to Rule 13a-15(b)  under the Securities  Exchange Act of 1934, the
Company  carried out an  evaluation,  with the  participation  of the  Company's
management,  including the Company's Chief Executive Officer and Chief Financial
Officer,  of  the  effectiveness  of  the  Company's   disclosure  controls  and
procedures (as defined under Rule 13a-15(e) under the Securities Exchange Act of
1934  as of the end of the  period  covered  by this  report.  Based  upon  that
evaluation,  the Company's Chief Executive  Officer and Chief Financial  Officer
concluded that the

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Company's  disclosure  controls and procedures are effective in timely  alerting
them  to  material   information   relating  to  the  Company's  (including  its
consolidated subsidiaries) required to be included in the Company's periodic SEC
filings.

(b)  CHANGE IN INTERNAL CONTROLS

     There has been no change in the Company's  internal  control over financial
reporting  during the  quarter  ended  September  30,  2003 that has  materially
affected,  or is reasonably likely to materially  affect, the Company's internal
control over financial reporting.

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

(a) EXHIBITS

     31.1 Certification  of Chief Executive  Officer  pursuant to Section 302 of
          the Sarbanes-Oxley Act of 2002.


     31.2 Certification  of Chief Financial  Officer  pursuant to Section 302 of
          the Sarbanes-Oxley Act of 2002.


     32.1 Certification  of Chief Executive  Officer  pursuant to Section 906 of
          the Sarbanes-Oxley Act of 2002.


     32.2 Certification  of Chief Financial  Officer  pursuant to Section 906 of
          the Sarbanes-Oxley Act of 2002.



(b)  REPORTS ON FORM 8-K

     The Company  furnished a Current Report on Form 8-K with the Securities and
Exchange  Commission  on July 30, 2003,  relating to Regulation FD Disclosure to
furnish  a copy  of the  press  release  dated  July  30,  2003,  that  reported
InteliData's results of operations and financial condition for the quarter ended
June 30, 2003.

                                   * * * * * *

<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 on November 6, 2003.

                                 INTELIDATA TECHNOLOGIES CORPORATION

                                 By:    /s/ Alfred S. Dominick, Jr.
                                       -----------------------------------------
                                       Alfred S. Dominick, Jr.
                                       Chairman and Chief Executive Officer


                                        /s/ John R. Polchin
                                       -----------------------------------------
                                       John R. Polchin
                                       Vice President, Chief Financial Officer,
                                       and Treasurer