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                       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 Quarter Ended:  September 30, 2002     Commission File Number  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)

                                 (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
   ---    ---

The number of shares of the registrant's  Common Stock  outstanding on September
30, 2002 was approximately 48,989,000.



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<PAGE>


                       INTELIDATA TECHNOLOGIES CORPORATION

                          QUARTERLY REPORT ON FORM 10-Q

                                TABLE OF CONTENTS


                                                                            Page
PART I - FINANCIAL INFORMATION                                              ----

 Item 1.  Unaudited Condensed Consolidated Financial Statements

          Condensed Consolidated Balance Sheets
          September 30, 2002 and December 31, 2001 ..........................  3

          Condensed Consolidated Statements of Operations
          Three and Nine Months Ended September 30, 2002 and 2001 ...........  4

          Condensed Consolidated Statement of Changes in Stockholders' Equity
          Nine Months Ended September 30, 2002...............................  5

          Condensed Consolidated Statements of Cash Flows
          Nine Months Ended September 31, 2002 and 2001......................  6

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

 Item 2.  Management's Discussion and Analysis of Financial Condition
          and Results of Operations ......................................... 13

 Item 3.  Quantitative and Qualitative Disclosures About Market Risk......... 19

 Item 4.  Evaluation of Disclosure Controls and Procedures................... 19



PART II - OTHER INFORMATION

 Item 6.  Exhibits and Reports on Form 8-K................................... 20

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

 CERTIFICATIONS  ............................................................ 21


<PAGE>


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

                       INTELIDATA TECHNOLOGIES CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                    SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
                  (in thousands, except share data; unaudited)

<TABLE>
                                                                                        2002            2001
                                                                                    ------------    ------------
<S>                                                                                <C>              <C>
ASSETS
CURRENT ASSETS
     Cash and cash equivalents                                                      $      5,821    $     12,026
     Investments                                                                             259           2,917
     Accounts receivable, net                                                              4,284           4,992
     Other receivables                                                                       198             563
     Prepaid expenses and other current assets                                               327             559
                                                                                    ------------    ------------
         Total current assets                                                             10,889          21,057

NONCURRENT ASSETS
     Property and equipment, net                                                           2,951           3,720
     Goodwill, net                                                                        26,238          22,549
     Intangibles, net                                                                      5,960          10,189
     Other assets                                                                            175             195
                                                                                    ------------    ------------

TOTAL ASSETS                                                                        $     46,213    $     57,710
                                                                                    ============    ============

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
     Accounts payable                                                               $      2,785    $      3,346
     Accrued expenses                                                                      3,692           5,357
     Deferred revenues                                                                     2,236           3,164
     Other liabilities                                                                       243             324
     Net liabilities of discontinued operations                                               91             204
                                                                                    ------------    ------------
TOTAL CURRENT LIABILITIES                                                                  9,047          12,395
     Net liabilities of discontinued operations                                              200             300
     Other liabilities                                                                       366             540
                                                                                    ------------    ------------
TOTAL LIABILITIES                                                                          9,613          13,235
                                                                                    ------------    ------------

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 49,795,000 shares in 2002 and 49,724,000 shares in 2001;
        outstanding 48,989,000 shares in 2002 and 48,917,000 shares in 2001                   50              50
     Additional paid-in capital                                                          302,857         303,141
     Treasury stock, at cost:  806,000 shares in 2002 and 2001                            (2,473)         (2,473)
     Deferred compensation                                                                  (391)         (1,395)
     Accumulated other comprehensive income                                                    9             210
     Accumulated deficit                                                                (263,452)       (255,058)
                                                                                    -------------   ------------
TOTAL STOCKHOLDERS' EQUITY                                                                36,600          44,475
                                                                                    ------------    ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                          $     46,213    $     57,710
                                                                                    ============    ============

</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, 2002 AND 2001
                (in thousands, except per share data; unaudited)

<TABLE>

                                                                 Three Months Ended               Nine Months Ended
                                                                   September 30,                    September 30,
                                                          -----------------------------   -------------------------------
                                                              2002              2001            2002               2001
                                                          -----------      -----------       -----------      -----------
<S>                                                       <C>              <C>               <C>              <C>

Revenues
     Software                                             $    183         $   1,195         $    704         $   1,603
     Consulting and services                                 5,827             4,112           15,475            11,210
                                                          -----------      -----------       -----------      -----------
         Total revenues                                      6,010             5,307           16,179            12,813
                                                          -----------      -----------       -----------      -----------

Cost of revenues
     Software                                                   --                --               --                 5
     Consulting and services                                 2,376             2,421            6,414             6,435
                                                          -----------      -----------       -----------      -----------
         Total cost of revenues                              2,376             2,421            6,414             6,440
                                                          -----------      -----------       -----------      -----------

         Gross profit                                        3,634             2,886            9,765             6,373

Operating expenses
     General and administrative                              2,375             3,058            7,305             8,550
     Sales and marketing                                       793             2,167            2,547             7,318
     Research and development                                1,933             3,850            7,106            12,635
     Amortization of goodwill and intangibles                  180             1,291              540             3,819
                                                          -----------      -----------       -----------      -----------
         Total operating expenses                            5,281            10,366           17,498            32,322
                                                          -----------      -----------       -----------      -----------

Operating loss                                              (1,647)           (7,480)          (7,733)          (25,949)
Realized gain (loss) on sales of investments                    --                --             (748)            1,130
Unrealized loss on Sybase warrants                              --            (1,554)              --            (2,268)
Other income (expenses), net                                    32                79               87               560
                                                          -----------      -----------       -----------      -----------

Loss before income taxes                                    (1,615)           (8,955)          (8,394)          (26,527)
Benefit for income taxes                                        --              (160)              --              (160)
                                                          -----------      -----------       -----------      -----------

Loss from continuing operations                             (1,615)           (8,795)          (8,394)          (26,367)
Discontinued operations, net of income taxes                    --                --               --                --
                                                          -----------      -----------       -----------      -----------

Net loss                                                  $ (1,615)        $  (8,795)        $ (8,394)        $ (26,367)
                                                          ===========      ===========       ===========      ===========

Basic loss per common share
     Loss from continuing operations                      $  (0.03)        $   (0.19)        $  (0.17)        $   (0.59)
     Income (loss) from discontinued operations               0.00              0.00             0.00              0.00
                                                          -----------      -----------       -----------      -----------
     Net loss                                             $  (0.03)        $   (0.19)        $  (0.17)        $   (0.59)
                                                          ===========      ===========       ===========      ===========
Diluted loss per common share
     Loss from continuing operations                      $  (0.03)        $   (0.19)        $  (0.17)        $   (0.59)
     Income (loss) from discontinued operations               0.00              0.00             0.00              0.00
                                                          -----------      -----------       -----------      -----------
     Net loss                                             $  (0.03)        $   (0.19)        $  (0.17)        $   (0.59)
                                                          ===========      ===========       ===========      ===========

Basic weighted-average common shares outstanding            49,359            45,521           48,901            45,007
                                                          ===========      ===========       ===========      ===========
Diluted weighted-average common shares outstanding          49,359            45,521           48,901            45,007
                                                          ===========      ===========       ===========      ===========

</TABLE>


     See accompanying notes to condensed consolidated financial statements.


<PAGE>

                       INTELIDATA TECHNOLOGIES CORPORATION
       CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                      NINE MONTHS ENDED SEPTEMBER 30, 2002
                            (in thousands; unaudited)

<TABLE>
                                                                                                             Accumulated
                                                                   Additional                                    Other
                                              Common Stock          Paid-in      Treasury      Deferred      Comprehensive
                                        -------------------------
                                          Shares       Amount       Capital       Stock      Compensation       Income
                                        ----------- ------------- ------------- ----------- --------------- ----------------

<S>                                     <C>         <C>           <C>           <C>         <C>             <C>

Balance at January 1, 2002                 49,724   $      50     $   303,141   $  (2,473)  $    (1,395)       $     210
Issuances of common stock:
   Exercises of stock options                  11           -              15           -             -                -
   Employee stock purchase plan                19           -              23           -             -                -
   Issuances of restricted stock              139           -             247           -          (247)               -
Cancellations of restricted stock             (98)          -            (375)          -           375                -
Home Account 2000 incentive plan                -           -            (194)          -           194                -
Realized gain on investments sold,
   net of income taxes                          -           -               -           -             -             (210)
Unrealized gain on investments,
   net of income taxes                          -           -               -           -             -                9
Amortization of deferred compensation           -           -               -           -           682                -
Net loss                                        -           -               -           -             -                -

Comprehensive loss

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

Balance at September 30, 2002              49,795   $      50     $   302,857   $  (2,473)    $    (391)       $       9
                                        =========== ============= ============= =========== =============== ================

                                          Accumulated   Comprehensive

                                            Deficit          Loss          Total
                                         -------------- --------------- ------------

Balance at January 1, 2002               $  (255,058)                   $  44,475
Issuances of common stock:
   Exercises of stock options                      -                           15
   Employee stock purchase plan                    -                           23
   Issuances of restricted stock                   -                            -
Cancellations of restricted stock                  -                            -
Home Account 2000 incentive plan                   -                            -
Realized gain on investments sold,
   net of income taxes                             -           (210)         (210)
Unrealized gain on investments,
   net of income taxes                             -              9             9
Amortization of deferred compensation              -                          682
Net loss                                      (8,394)        (8,394)       (8,394)
                                                          ---------------
Comprehensive loss                                        $  (8,595)
                                                          ==========
                                         --------------                 ------------

Balance at September 30, 2002            $  (263,452)                   $  36,600
                                         ==============                 ============


</TABLE>

     See accompanying notes to condensed consolidated financial statements.


<PAGE>


                       INTELIDATA TECHNOLOGIES CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                  NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                            (in thousands; unaudited)
<TABLE>


                                                                              2002                     2001
                                                                           -----------             ----------
<S>                                                                        <C>                     <C>
Cash flows from operating activities
     Loss from continuing operations                                       $    (8,394)            $  (26,367)
     Adjustments to reconcile loss from continuing operations
         to net cash used in operating activities of continuing operations:
         Realized loss (gain) on sales of investments                              748                 (1,130)
         Unrealized loss on Sybase warrants                                         --                  2,268
         Amortization of goodwill and intangibles                                  540                  3,819
         Depreciation and amortization                                           1,148                  1,266
         Deferred compensation expense                                             682                  1,540
         Loss on disposal of property and equipment                                  2                     --
         Changes in certain assets and liabilities:
              Accounts receivable                                                  708                 (3,200)
              Other receivables                                                    365                 (1,325)
              Prepaid expenses and other current assets                            252                     (6)
              Accounts payable                                                    (511)                  (463)
              Accrued expenses                                                  (1,929)                  (805)
              Deferred revenues                                                   (928)                 1,233
                                                                           -----------             ----------
                  Net cash used in operating activities of
                  continuing operations                                         (7,317)               (23,170)
                                                                           -----------             ----------

     Loss from discontinued operations                                              --                     --
     Change in net liabilities of discontinued operations                         (213)                  (184)
                                                                           -----------             ----------
                  Net cash used in operating activities of
                  discontinued operations                                         (213)                  (184)
                                                                           -----------             ----------

                  Net cash used in operating activities                         (7,530)               (23,354)
                                                                           -----------             ----------

Cash flows from investing activities
     Net proceeds from warrant exercise and sales of investments                 1,718                  4,883
     Release of cash from escrow                                                    --                    311
     Purchases of property and equipment                                          (381)                  (712)
     Sale of property and equipment                                                 --                    121
     Payments for acquisition costs for Home Account                               (50)                (1,749)
     Cash paid for Home Account common stock                                        --                   (268)
                                                                           -----------             ----------
                  Net cash provided by investing activities                      1,287                  2,586
                                                                           -----------             ----------

Cash flows from financing activities
     Proceeds from issuance of common stock                                         38                    403
     Payments to acquire treasury stock                                             --                   (350)
                                                                           -----------             ----------
                  Net cash provided by financing activities                         38                     53
                                                                           -----------             ----------

                  Decrease in cash and cash equivalents                         (6,205)               (20,715)

                  Cash and cash equivalents, beginning of period                12,026                 27,255
                                                                           -----------             ----------
                  Cash and cash equivalents, end of period                 $     5,821             $    6,540
                                                                           ===========             ==========

</TABLE>

     See accompanying notes to condensed consolidated financial statements.

<PAGE>


                       INTELIDATA TECHNOLOGIES CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                  NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                                   (Unaudited)


(1)     Basis of Presentation

        The condensed consolidated balance  sheet  of  InteliData   Technologies
Corporation  ("InteliData"  or the  "Company")  as of September  30,  2002,  the
related condensed  consolidated  statements of operations and cash flows for the
nine-month  periods ended September 30, 2002 and 2001, and the related condensed
consolidated  statement of changes in  stockholders'  equity for the  nine-month
period ended  September 30, 2002 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, 2001 was derived from the Company's audited December 31, 2001 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, 2001.

(2)     Summary of Significant Accounting Policies

(a)     Revenue  Recognition  - The Company   supplies  Internet  banking   and
electronic bill presentment and payment software to financial  nstitutions.  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  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  service  bureaus,  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 its
software in an application services provider  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

<PAGE>

licensed  software  from the Company,  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 are 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.

(b)     New  Accounting Pronouncements - In  June 2002, the Financial Accounting
Standards  Board  issued  Statement of  Financial  Accounting  Standard 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. The Company does not believe that the implementation of these provisions
will have a material impact on its financial position or results of operations.

(c)     Adoption of New Accounting Pronouncement - Prior to January 1, 2001, the
Company  considered  its  investment  in warrants to  purchase  common  stock of
Sybase,  Inc.  ("Sybase")  to be  available-for-sale  under  the  provisions  of
Statement of Financial  Accounting  Standards  No. 115,  Accounting  for Certain
Investments  in Debt and Equity  Securities.  Effective  January  1,  2001,  the
Company adopted Statement of Financial  Accounting Standards No. 133, Accounting
for  Derivative   Instruments  and  Hedging   Activities  ("SFAS  133"),   which
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.  Effective  January 1,  2001,  the
Company's investment in the Sybase warrants was accounted for in accordance with
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 stockholders'  equity (as a component of comprehensive
income),  depending on whether the  derivative is being used to hedge changes in
fair  value  or cash  flows.  The  Company's  adoption  of  this  pronouncement,
effective  January 1, 2001,  did not result in an adjustment  for the cumulative
effect of an accounting  change,  because the carrying value  reflected the fair
value under the previous accounting  guidance.  In accordance with SFAS 133, the
Company recorded an unrealized gain (loss) on investment of $0 and $(2,268,000),
for the nine months ended September 30, 2002 and 2001, respectively.

        The  Company  held 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.  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  received  net  proceeds  of  approximately  $1,718,000  and
recognized a realized loss from sales of investments of approximately $748,000.

        In June 2001,  the Financial Accounting Standards Board issued Statement
of Financial Accounting  Standards No. 141, Business  Combinations ("SFAS 141"),
and SFAS No. 142,  Goodwill and Other Intangible  Assets ("SFAS 142").  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 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

<page>

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  and  the  assembled  workforce
intangible asset, and the assembled workforce intangible asset was combined with
goodwill for financial accounting and reporting.  Accordingly,  the goodwill and
intangible asset consist of the following components (in thousands):


     As of September 30, 2002:          Goodwill      Intangible        Total
                                        --------      ----------        --------
         Gross carrying amount        $   29,793      $    7,200       $ 36,993
         Accumulated amortization         (3,555)         (1,240)        (4,795)
                                      -----------     -----------      ---------
         Net                          $   26,238      $    5,960       $ 32,198
                                      ==========      ==========       ========

     As of December 31, 2001:           Goodwill      Intangible        Total
                                        --------      ----------        --------
         Gross carrying amount        $   25,593      $   11,400       $ 36,993
         Accumulated amortization         (3,044)         (1,211)        (4,255)
                                      -----------     ----------       --------
         Net                          $   22,549      $   10,189       $ 32,738
                                      ==========      ==========       ========

        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:                  Expense
                                                        -------
                  2002                                  $    720
                  2003                                       720
                  2004                                       720
                  2005                                       720
                  2006                                       720

        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 September  30,  2002,  the Company is not aware of such events or
circumstances that could indicate potential impairment.

        The  adoption  of   this   accounting standard  reduced the amortization
expense  associated  with goodwill and certain  intangibles  by $3,279,000  from
$3,819,000 for the nine months ended September 30, 2001 to $540,000 for the same
period  in  2002.  The  following  sets  forth a  reconciliation  of  loss  from
continuing  operations and earnings per share  information  for the three months
and  nine  months  ended  September  30,  2002 and  2001,  as  adjusted  for the
non-amortization provisions of SFAS 142 (in thousands, except per share data):

<PAGE>
<TABLE>


                                                      Three Months Ended                  Nine Months Ended
                                                           September 30,                    September 30,
                                                 ----------------------------       ----------------------------
<S>                                              <C>              <C>               <C>              <C>

                                                     2002              2001            2002               2001
                                                 -----------      -----------       -----------      -----------

Reported loss from continuing operations         $  (1,615)       $  (8,795)        $  (8,394)       $  (26,397)
Add:  Goodwill amortization, net of taxes               --            1,111                --             3,299
                                                 -----------      -----------       -----------      -----------

Adjusted loss from continuing operations            (1,615)          (7,684)           (8,394)          (23,098)
Reported income (loss) discontinued operations          --               --                --                --
                                                 -----------      -----------       -----------      -----------

Adjusted net loss                                $  (1,615)       $  (7,684)        $  (8,394)       $  (23,098)
                                                 ===========      ===========       ===========      ===========

Basic and diluted loss per common share
     Adjusted loss from continuing operations    $   (0.03)        $  (0.17)       $    (0.17)      $     (0.51)
     Income (loss) from discontinued operations       0.00             0.00              0.00              0.00
                                                 -----------      -----------       -----------      -----------
     Adjusted net loss                           $   (0.03)        $  (0.17)           $(0.17)      $     (0.51)
                                                 ===========      ===========       ===========      ===========

Basic and diluted weighted-average
     common shares outstanding                      49,359           45,521            48,901            45,007
                                                 ===========      ===========       ===========      ===========
</TABLE>

        In  August   2001, the  FASB issued  SFAS  No. 144,  Accounting  for the
Impairment  or Disposal of Long-Lived  Assets  ("SFAS 144"),  which is effective
January 1, 2002.  This  statement  replaces  SFAS No.  121,  Accounting  for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of, and
some  provisions of Accounting  Principles  Board Opinion No. 30,  Reporting the
Effects of Disposal of a Segment of a Business  and  Extraordinary,  Unusual and
Infrequently  Occurring  Events and  Transactions.  SFAS 144  requires  that one
accounting  model be used  for  long-lived  assets  to be  disposed  of by sale,
whether  previously  held and  used or  newly  acquired.  It also  broadens  the
presentation of discontinued  operations to include more disposal  transactions.
The Company's  adoption of this  pronouncement on January 1, 2002 did not have a
material affect on the Company's financial position,  results of operations,  or
cash flows.

(3)     Acquisition of Home Account

        On    January 11, 2001, the Company acquired Home Account Holdings, Inc.
("Home  Account")  and its operating  subsidiary,  Home Account  Network,  Inc.,
pursuant to an agreement and plan of merger whereby a wholly-owned subsidiary of
the Company merged with and into Home Account,  with Home Account  surviving the
merger as the Company's wholly-owned subsidiary.  This acquisition was accounted
for as a purchase.  Following the  Company's  acquisition  of Home Account,  the
Company  provides a suite of UNIX-based  electronic  banking and electronic bill
presentment  and  payment  ("EBPP")  products  and  services  in an  application
services provider ("ASP") environment.

        Pursuant to the merger agreement, the Company purchased Home Account for
approximately  $320,000 in cash and 6,900,000 shares of Company common stock and
the merger was accounted for as a purchase. The purchase price was the result of
an arm's-length  negotiation between the Company and Home Account,  based on the
Company's  evaluation  of the  fair  market  value of Home  Account's  business,
including its  revenues.  The value of the shares issued as part of the purchase
consideration of approximately  $29,011,000 was measured based on the average of
the market price of the issued  common stock a few days before and after January
11,  2001 - the date that the merger  transaction  was agreed to and  announced.
This amount,  coupled with the liability  associated  with the Home Account 2000
Incentive  Plan  of  $2,946,000,  resulted  in an  increase  of  $31,957,000  in
stockholders'   equity  in  fiscal  year  2001.  The  total  purchase  price  of
approximately $31,186,000 consisted of the following (in thousands):

        Consideration and acquisition costs:
            Value of shares issued                       $    29,011
            Cash consideration                                   320
            Acquisition costs                                  1,855
                                                         -----------
                                                         $    31,186
                                                         ===========

<page>

        The  assets  acquired and liabilities assumed were recorded at estimated
fair values as  determined  by the  Company's  management  based on  information
currently  available and on current  assumptions  as to future  operations.  The
Company has obtained  independent  professional  services for the purchase price
allocation to the fair values of the acquired property, plant and equipment, and
identified intangible assets, and their remaining useful lives and has completed
its review and determination of the fair values of the other assets acquired and
liabilities assumed. A summary of the assets acquired and liabilities assumed in
the acquisition follows (in thousands):

   Allocation of purchase price:
       Current assets                                             $       1,562
       Property, plant and equipment                                      1,743
       Intangibles                                                       11,400
       Liabilities assumed and other                                     (4,344)
       Liabilities associated with Home Account Incentive Plan           (2,946)
       Acquisition integration liabilities                               (1,822)
       Goodwill                                                          25,593
                                                                  -------------
                                                                  $      31,186
                                                                  ==============

        Intangible  assets  consist of $4,200,000 for assembled workforce (which
has an  estimated  useful life of eight years prior to the adoption of SFAS 142)
and $7,200,000 for  contracts/relationships  (which has an estimated useful life
of ten years).  Assembled  workforce was determined  based on the number of Home
Account employees,  function,  compensation,  fringe benefits, recruiting costs,
training, and other factors. Contracts/relationships was determined based on the
history of low attrition, the high cost of switching,  market prices, forecasted
revenues,  evaluation of competitors,  and other factors.  Such  allocations and
designations  were  completed in accordance  with  Accounting  Principles  Board
Opinion No. 16,  Business  Combination.  Effective  January 1, 2002, the Company
adopted SFAS 142 and the  appropriate  transitional  accounting  is discussed in
Note 2.

        As a  result  of  the  acquisition of Home Account, the Company incurred
acquisition  expenses  for  costs to exit  certain  activities  at Home  Account
locations  and to  involuntarily  terminate  employees of the acquired  company.
Generally  accepted   accounting   principles  require  that  these  acquisition
integration  expenses,  which are not  associated  with the generation of future
revenues, have no future economic benefit and which meet certain other criteria,
be reflected as assumed  liabilities  in the allocation of the purchase price to
the  net  assets  acquired.  The  components  of  the  acquisition   integration
liabilities  balance of $1,822,000 included in the purchase price allocation are
approximately  $1,000,000  for lease  costs  for the now  vacated  Home  Account
headquarters  in  Emeryville,  California,  and  $822,000  related to  workforce
reduction.  As of September 30, 2002,  the Company had a remaining  liability of
$609,000  associated  with such lease  costs,  of which  $243,000 is current and
$366,000 is noncurrent.

        The  workforce   reductions focused  on three key areas: 1) streamlining
development  efforts,  2)  eliminating  redundant  administrative  overhead  and
support   activities,   and   3)   restructuring   and   repositioning   of  the
sales/marketing   and  research  and  development   organizations  to  eliminate
redundancies in these activities. As of December 31, 2001, 87 positions had been
terminated  and  approximately  $822,000 had been paid.  No  additional  changes
occurred  during the period  ended  September  30, 2002 and the Company does not
expect future adjustments related to this purchase price allocation.

        Due  to the fact that the acquisition was completed on January 11, 2001,
no pro forma quarterly financial  information is presented to give effect to the
acquisition  of Home  Account as if it occurred on January 1, 2001.  The Company
believes  that the  results  of  operations  for the  eleven-day  period are not
material.

(4)     Home Account 2000 Incentive Plan

        In 2000, Home Account approved the 2000 Incentive Plan to encourage  the
retention of certain  officers and managers of Home Account  through a change of
control transaction, and after such a transaction to the extent, up to one year,
as desired by the acquirer. Upon acquisition of Home Account by an acquirer, the
2000  Incentive  Plan  provided  for the  granting  to plan  participants  of an
aggregate of 15% of the net amount of the merger consideration

<page>

allocable to Home  Account's  preferred  stockholders  after payment of the debt
preference  and  other  expenses  associated  with  a  transaction.   Under  the
InteliData and Home Account merger transaction,  this incentive plan was payable
in the form of InteliData  common stock and such payments were to be made by the
group of former  Home  Account  preferred  stockholders  (who were  collectively
considered as a "principal  stockholder"  for the purpose of this 2000 Incentive
Plan).   Two-thirds  of  the  2000  Incentive  Plan  allocation  vested  on  the
transaction  closing  date and  represented  a  pre-acquisition  expense to Home
Account.  In  connection  with the merger  transaction,  the  Company  agreed to
advance  the  participants  funds to pay for their tax  withholding  obligations
associated with the two-thirds  portion.  The original  principal amount of this
receivable  balance was  approximately  $1,116,000.  The shares allocable to the
participants  were  placed in an escrow  account  and were  released to the Home
Account Stockholders' Representative in accordance with the Merger Consideration
Escrow Agreement.  As of December 31, 2001, the remaining outstanding receivable
balance, including interest, was approximately $466,000 and was reflected in the
"Other  receivable"  balance.  On February 4, 2002,  the  remaining  outstanding
balance plus additional interest accrued was paid in full.

        The   remaining one - third  of  the participants'  allocation vested on
January 11, 2002 (one year from the  transaction  closing  date).  All forfeited
shares  reverted  to the  former  preferred  stockholders  of Home  Account.  In
connection with the 2000 Incentive Plan  allocation,  the deferred  compensation
for the  one-third  portion  became  fixed  and  measurable  on April 1, 2002 at
$155,000  based on $1.20 (the  closing  price of the  Company's  common stock at
April 1, 2002). The difference between this amount and the recognized expense in
the prior  periods was recorded as a $183,000  reduction  of expense  during the
first quarter of 2002.

(5)     Discontinued Operations

        As of September 30, 2002, the net liabilities of discontinued operations
of $291,000  relate to the  telecommunications  divisions.  This  relates 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, 2002, 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  $291,000 and has recorded a
liability for this amount.

        The  Company has  engaged a  legal firm  and an environmental specialist
firm to represent  InteliData  regarding this matter. The timing of the ultimate
resolution  of this matter is estimated to be from three to five 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.

                                   * * * * * *

<PAGE>


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

Results of Operations for the Three Months Ended September 30, 2002 and 2001

        The  following  represents the  results  of  operations  for  InteliData
Technologies Corporation for the three months ended September 30, 2002 and 2001.
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 $6,010,000 in 2002 compared to
$5,307,000  in 2001,  an increase of  $703,000.  The increase was a result of an
increase in consulting  and services  revenues of  $1,715,000  and a decrease in
software  revenues of $1,012,000.  During the third quarter of 2002, the Company
generated  $183,000 from  software  sales and  $5,827,000  from  consulting  and
services.  During  the third  quarter  of 2001,  software  revenues  contributed
$1,195,000 and consulting and services contributed $4,112,000.

        The  increase in consulting and services revenues from the third quarter
of 2001 to the third  quarter  of 2002 was  primarily  due to  increases  in the
Company's  recurring revenue from fees associated with its application  services
provider ("ASP")  operations.  The decrease in software  revenues from the third
quarter of 2001 to the third  quarter of 2002 was primarily due to the timing of
system deliveries and fewer software license sales.

Cost of Revenues and Gross Profit

        The  Company's cost  of revenues  decreased $45,000 to $2,376,000 in the
third quarter of 2002 from $2,421,000 in the third quarter in 2001. The decrease
was due to the  offsetting of  approximately  $33,000 of costs against a forward
loss accrual that was expensed in previous periods.

        Overall gross profit margins increased to 60% for the  third quarter  of
2002  from 54% for the third  quarter  of 2001.  The  increase  in gross  profit
margins was  attributable  to an increase in recurring  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.

General and Administrative

        General  and administrative expenses decreased $683,000 to $2,375,000 in
the third  quarter of 2002 from  $3,058,000  in the third  quarter of 2001.  The
decrease was primarily  attributable to the Company's reduction of corporate and
administrative expenses that resulted from continued evaluation of on-going cost
structures  and the purchase of Home Account.  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 $1,374,000 to $793,000 in the
third quarter of 2002 from  $2,167,000  in the third  quarter of 2001.  This was
primarily  attributable  to  decreases  in the number of selling  and  marketing
employees,  travel and outside  professional  consulting  expenses.  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 $1,917,000 to $1,933,000 in the
third quarter of 2002 from $3,850,000 in the third quarter of 2001. The decrease
was  primarily  attributable  to the  Company's  expense  reduction  efforts  in
combining the operations of InteliData and Home Account and finding efficiencies
and synergies. The Company incurs research and development expenses primarily in
developing the next generation,

<page>

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.
The adoption of this  accounting  standard,  as of January 1, 2002,  reduced the
amortization  expense  associated  with  goodwill  and  certain  intangibles  by
$1,111,000,  from  $1,291,000  for the three months ended  September 30, 2001 to
$180,000 for the same period in 2002. As of January 1, 2002, in accordance  with
SFAS 142, the Company ceased  recognizing  amortization  expense on goodwill and
the assembled workforce intangible asset, and the assembled workforce intangible
asset was combined with goodwill for financial accounting and reporting.

        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
September  30,  2002,  the Company is not aware of such events or  circumstances
that could indicate potential impairment.

Realized Gains on Sales of Investments

        On January  20, 2000, Home Financial Network, Inc. ("HFN"), a company in
which  InteliData  held  approximately  a 25%  ownership  interest,  merged with
Sybase, Inc.  ("Sybase").  InteliData  accounted for its investment in HFN using
the equity method. As of the merger date, such  investment's  carrying value was
zero.  In exchange  for its portion of  ownership  in HFN,  InteliData  received
approximately  $5,867,000 in cash and  approximately  1,770,000 shares of Sybase
stock.  The Company also held warrants to purchase HFN common stock.  As part of
the merger  agreement,  such warrants were  converted  into warrants to purchase
Sybase  common  stock.  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.

        Prior to  January 1,  2001,  the  Company  considered  its investment in
Sybase  common  stock  and  warrants  to  purchase  Sybase  common  stock  to be
available-for-sale  under the  provisions  of Statement of Financial  Accounting
Standards  No.  115,  Accounting  for  Certain  Investments  in Debt and  Equity
Securities  ("SFAS  115").  Effective  January  1,  2001,  the  Company  adopted
Statement of Financial  Accounting  Standards No. 133, Accounting for Derivative
Instruments and Hedging  Activities ("SFAS 133"),  which 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.

        In  accordance with  SFAS 115,  the balance  sheets  include  $9,000 and
$210,000 of unrealized gain on investments (net of taxes),  within stockholders'
equity as of  September  30, 2002 and December  31,  2001,  respectively.  As of
September  30,  2002,  the  accumulated  other   comprehensive   income  balance
represents  the changes in the fair market value.  In accordance  with SFAS 133,
the change in the fair market  value of the Sybase  warrants was recorded in the
statement of operations.

        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

<page>

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.  The  Company's  adoption  of this
pronouncement,  effective  January 1, 2001,  did not result in an adjustment for
the  cumulative  effect of an  accounting  change,  because the  carrying  value
reflected the fair value under the previous accounting  guidance.  In accordance
with  SFAS 133,  the  Company  recorded  an  unrealized  loss on  investment  of
$1,554,000 in the statements of operations for the three months ended  September
30, 2001.

Other Income

        Other  income,  primarily   investment   and  interest income, decreased
$47,000  to  $32,000  in the third  quarter  of 2002 from  $79,000  in the third
quarter of 2001. The decrease is associated  with  decreased  levels of cash and
cash  equivalents  in 2002 as  compared  to 2001,  and the  incurrence  of other
expenses in 2002.

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

        The   basic  and diluted  weighted - average  common shares increased to
49,359,000  for the third quarter of 2002  compared to 45,521,000  for the third
quarter of 2001.  The  increase  resulted  primarily  from the exercise of stock
options,  stock  purchases  under the  Employee  Stock  Purchase  Plan,  and the
issuance of 2,863,000 shares for the private  placements of the Company's common
stock that closed in November and December of 2001.

        Losses from continuing operations were $1,615,000 and $8,795,000 for the
three-month periods ended September 30, 2002 and 2001, respectively, while there
was no gain or loss from  discontinued  operations in either period.  Net losses
were $1,615,000 and $8,795,000 for 2002 and 2001,  respectively.  As a result of
the  foregoing,  basic and diluted net loss per common share was ($0.03) for the
third  quarter of 2002 compared to a basic and diluted net loss per common share
of ($0.19) for the third quarter of 2001.


Results of Operations for the Nine Months Ended September 30, 2002 and 2001

         The  following  represents  the  results of  operations  for InteliData
Technologies  Corporation for the nine months ended September 30, 2002 and 2001.
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 in 2 002 were
$16,179,000  compared to  $12,813,000  in 2001, an increase of  $3,366,000.  The
increase  was a result of an increase in  consulting  and  services  revenues of
$4,265,000  and a decrease in software  revenues of  $899,000.  During the first
nine months in 2002,  the Company  generated  $704,000 from  software  sales and
$15,475,000 from consulting and services.  During the first nine months of 2001,
software revenues contributed $1,603,000 and consulting and services contributed
$11,210,000.

        The  increase  in consulting  and  services revenues from the first nine
months of 2001 to the first nine months of 2002 was  primarily  due to increases
in the Company's  recurring  revenue from fees  associated  with its application
services provider ("ASP") operations. The decrease in software revenues from the
first nine months of 2001 to the first nine months of 2002 was  primarily due to
the timing of the system deliveries and fewer software license sales.

Cost of Revenues and Gross Profit

        The   Company's cost of revenues decreased $26,000 to $6,414,000 for the
first nine months of 2002 from $6,440,000 for the first nine months of 2001. The
decrease was due to the offsetting of approximately  $198,000 of costs against a
forward  loss  accrual  that was  expensed  in previous  periods,  offset by the
increased costs associated with increased revenues.
<page>

        Overall  gross profit margins increased to 60% for the first nine months
of 2002 from 50% for the first nine months of 2001. The increase in gross profit
margins was  attributable  to an increase in recurring  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.

General and Administrative

        General and  administrative  expenses decreased $1,245,000 to $7,305,000
in the first nine  months of 2002 from  $8,550,000  in the first nine  months of
2001.  The decrease was primarily  attributable  to the  Company's  reduction of
redundant  corporate and  administrative  expenses that resulted from  continued
evaluation of on-going cost  structures and the purchase of Home Account,  which
included the  elimination of the former Home Account  headquarters.  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 $4,771,000 to $2,547,000 in the
first nine months of 2002 from $7,318,000 in the first nine months of 2001. This
was primarily  attributable  to decreases in the number of selling and marketing
employees, travel and outside professional consulting expenses,  associated with
efficiencies and synergies while eliminating redundancies that resulted from the
purchase of Home Account. 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  $5,529,000 to $7,106,000 in
the first nine months of 2002 from $12,635,000 in the first nine months of 2001.
The decrease was  primarily  attributable  to the  Company's  expense  reduction
efforts in combining the  operations of InteliData  and Home Account and finding
efficiencies and synergies while  eliminating  redundancies.  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.
The adoption of this  accounting  standard,  as of January 1, 2002,  reduced the
amortization  expense  associated  with  goodwill  and  certain  intangibles  by
$3,279,000,  from  $3,819,000  for the nine months ended  September  30, 2001 to
$540,000 for the same period in 2002. As of January 1, 2002, in accordance  with
SFAS 142, the Company ceased  recognizing  amortization  expense on goodwill and
the assembled workforce intangible asset, and the assembled workforce intangible
asset was combined with goodwill for financial accounting and reporting.

        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
September  30,  2002,  the Company is not aware of such events or  circumstances
that could indicate potential impairment.

<page>

Realized Gains on Sales of Investments

         On January 20, 2000, Home Financial Network, Inc. ("HFN"), a company in
which  InteliData  held  approximately  a 25%  ownership  interest,  merged with
Sybase, Inc.  ("Sybase").  InteliData  accounted for its investment in HFN using
the equity method. As of the merger date, such  investment's  carrying value was
zero.  In exchange  for its portion of  ownership  in HFN,  InteliData  received
approximately  $5,867,000 in cash and  approximately  1,770,000 shares of Sybase
stock.  The Company also held warrants to purchase HFN common stock.  As part of
the merger  agreement,  such warrants were  converted  into warrants to purchase
Sybase  common  stock.  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.  The Company  recognized a realized gain of  approximately
$1,259,000 on sales of Sybase common stock during the first nine months of 2001.

        As  part of  this merger  transaction, an escrow account was established
to provide Sybase indemnity  protection against possible claims that might arise
against  HFN.  Approximately  133,000  shares of Sybase  common  stock  owned by
InteliData  were put in escrow,  along with  approximately  $440,000 of cash. In
March 2001, the Company received the escrow payments less approximately $129,000
for  miscellaneous  claims under the escrow provision and the Company recorded a
loss on escrow in the first quarter of 2001 of $129,000.

        Prior  to January   1, 2001,  the  Company  considered its investment in
Sybase  common  stock  and  warrants  to  purchase  Sybase  common  stock  to be
available-for-sale  under the  provisions  of Statement of Financial  Accounting
Standards  No.  115,  Accounting  for  Certain  Investments  in Debt and  Equity
Securities  ("SFAS  115").  Effective  January  1,  2001,  the  Company  adopted
Statement of Financial  Accounting  Standards No. 133, Accounting for Derivative
Instruments and Hedging  Activities ("SFAS 133"),  which 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.

        In  accordance  with  SFAS  115, the balance  sheets  include $9,000 and
$210,000 of unrealized gain on investments (net of taxes),  within stockholders'
equity as of  September  30, 2002 and December  31,  2001,  respectively.  As of
September  30,  2002,  the  accumulated  other   comprehensive   income  balance
represents  the changes in the fair market value of the Sybase common stock.  In
accordance  with SFAS 133,  the  change in the fair  market  value of the Sybase
warrants was recorded in the statement of operations.

        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.  The  Company's  adoption  of  this  pronouncement,
effective  January 1, 2001,  did not result in an adjustment  for the cumulative
effect of an accounting  change,  because the carrying value  reflected the fair
value under the previous accounting  guidance.  In accordance with SFAS 133, the
Company  recorded  an  unrealized  loss  on  investment  of  $2,268,000  in  the
statements  of  operations  for  the  nine  months  ended  September  30,  2001.
Additionally,  the Company recorded a $377,000 unrealized loss during the second
quarter  of 2002 to bring the  year-to-date  unrealized  loss to $0, in order to
reflect the exercise of the Sybase warrants.

        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  received  net  proceeds  of  approximately
$1,718,000  and  recognized  a  realized  loss  from  sales  of  investments  of
approximately $748,000. For the nine months ended September 30, 2001, InteliData
recognized a net realized gain of approximately $1,130,000.

<PAGE>


Other Income

        Other  income,  primarily  investment  and  interest  income,  decreased
$473,000 to $87,000 in the first nine months of 2002 from  $560,000 in the first
nine months of 2001. The decrease is associated  with  decreased  levels of cash
and cash  equivalents  in 2002 as compared to 2001,  and the incurrence of other
expenses in 2002.

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

        The  basic  and  diluted  weighted - average  common shares increased to
48,901,000  in the first nine months of 2002 compared to 45,007,000 in the first
nine months of 2001. The increase resulted  primarily from the exercise of stock
options,  stock  purchases  under the  Employee  Stock  Purchase  Plan,  and the
issuance of 2,863,000 shares for the private  placements of the Company's common
stock that closed in November and December of 2001.

        Losses  from  continuing  operations were $8,394,000 and $26,367,000 for
the nine-month  periods ended September 30, 2002 and 2001,  respectively,  while
there was no gain or loss from  discontinued  operations in either  period.  Net
losses were  $8,394,000 and $26,367,000  for 2002 and 2001,  respectively.  As a
result of the foregoing, basic and diluted net loss per common share was ($0.17)
in the first nine  months of 2002  compared  to a basic and diluted net loss per
common share of ($0.59) in the first nine months of 2001.

Liquidity and Capital Resources

        During  the  first nine  months  of 2002,  the Company's  cash  and cash
equivalents  decreased by  $6,205,000.  At September  30, 2002,  the Company had
$5,821,000 in cash and cash equivalents, $259,000 in investments,  $1,842,000 of
working capital with no long-term debt, and $36,600,000 in stockholders' equity.
The Company's principal needs for cash in the first nine months of 2002 were for
funding operating  losses.  The Company funded decreases in accounts payable and
accrued expenses of $511,000 and $1,929,000,  respectively,  for the nine months
ended September 30, 2002,  which was partially  offset by a decrease in accounts
receivable and other receivables of $708,000 and $365,000, respectively.

        The  Company's  cash  requirements for operating activities in the first
nine months of 2002 were  financed  primarily  by cash and cash  equivalents  on
hand.

        Net  cash provided  by investing  activities in the first nine months of
2002 was $1,287,000.  This was primarily  related to the sales of investments of
$1,718,000 and was offset by the purchases of property and equipment of $381,000
and cash paid for  acquisition  costs related to the purchase of Home Account of
$50,000.

        Financing   activities   provided net cash  of $38,000 in the first nine
months of 2002 from the issuance of  the Company's common stock for stock option
exercises.

        Through  the  remainder of  2002  and continuing into 2003, the  Company
expects  its  operating  losses to  continue  declining  based on  increases  in
revenues  due to  increases  in the  adoption  rates  and  penetration  rates of
Internet  banking,  Card  Solutions(TM)  and EBPP  Solutions,  and  based on our
periodic  rationalization  of  headcount  and  other  expenses  in  light of our
available capital and anticipated business  projections.  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.  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.

<PAGE>


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, the Company's ability to continue
funding operating losses,  the Company's ability to manage expenses in line with
anticipated business levels and to achieve profitability on a sustainable basis,
the  Company's  ability to complete  product  implementations  in required  time
frames and to  increase  its  recurring  revenues  and  profits  through its ASP
business model,  whether a market will emerge for the Company's  InteliWorks(TM)
product line,  the impact of competitive  products,  pricing  pressure,  product
demand and market acceptance risks, pace of consumer  acceptance of home banking
and reliance on the Company's  clients to increase usage of Internet  banking by
their customers,  an overall slow down in business due to the effects of general
economic  conditions  on the  financial  services  industries  and the resulting
delays caused by such  economic  conditions in  implementing  solutions  such as
those  offered  by the  Company,  the  lengthy  cycle  for  sales of many of the
Company's more complex products,  mergers and acquisitions,  risk of integration
of the Company's  technology,  the ability of the Company's clients 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 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
and the possible  migration of  customers  to  competitor  solutions or in-house
solutions,  ability to reduce product costs,  fluctuations in operating results,
delays in  development  of highly  complex  products,  the  impact of  increased
government  regulations  in the Internet and financial  services  industry,  the
impact of  declines  in the  Company's  stock  price and its ability to maintain
minimum listing standards of the NASDAQ stock markets,  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, 2001.  These risks could cause the Company's
actual results for 2002 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.

        As  of  September  30, 2002,  the fair value of the Company's investment
portfolio  was   approximately   $259,000,   which  consisted  of  fixed  income
securities.  Changes  in the fair  value of the  fixed  income  securities  will
continue  to  be  recognized  in   shareholders'   equity  (as  a  component  of
comprehensive income).


ITEM 4. EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
--------------------------------------------------------

(a)     Evaluation of Disclosure Controls and Procedures
        ------------------------------------------------

        The Company's chief executive officer and chief financial officer, after
evaluating  the  effectiveness  of  the  Company's   "disclosure   controls  and
procedures"  (as defined in the Securities  Exchange Act of 1934 Rules 13a-14(c)
and  15-d-14(c))  as of a date  ("Evaluation  Date")  within 90 days  before the
filing of this quarterly  report, have concluded that as of the Evaluation Date,
the Company's  disclosure  controls and procedures were adequate and designed to
ensure that material  information  relating to the Company and its  consolidated
subsidiaries would be made known to them by others within those entities.

<page>

(b)     Change in Internal Controls
        ---------------------------

        There  were no  significant  changes  in our internal controls or to our
knowledge,  in other  factors  that could  significantly  affect our  disclosure
controls and procedures subsequent to the Evaluation Date.


PART II: OTHER INFORMATION
--------------------------
ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
-----------------------------------------

(a)      Exhibits
         --------

         None.

(b)      Reports on Form 8-K
         -------------------

        The  Company filed a  Current Report on Form 8-K with the Securities and
Exchange Commission on August 12, 2002, relating to the certifications of Alfred
S. Dominick,  Jr., the Company's chief executive  officer,  and John R. Polchin,
the Company's chief financial officer,  required pursuant to 18 U.S.C. ss. 1350,
as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002.





                                 SIGNATURES

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


                                 INTELIDATA TECHNOLOGIES CORPORATION



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


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


<PAGE>


                            CERTIFICATION PURSUANT TO
               RULE 13A-14 OF THE SECURITIES EXCHANGE ACT OF 1934,
                             AS ADOPTED PURSUANT TO
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Alfred S. Dominick,  Jr., President,  Chief Executive Officer and Director of
the Company, certify that:

1.      I have reviewed this  quarterly   report  on  Form  10-Q  of  InteliData
Technologies Corporation (the "registrant");

2.     Based on my knowledge, this quarterly report does not contain any  untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.      Based  on  my  knowledge, the  financial statements, and other financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.      The  registrant's  other certifying  officers  and I are responsible for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

(a)     designed such disclosure controls and procedures to ensure that material
        information relating to  the  registrant,   including  its  consolidated
        subsidiaries, is made  known to  us by  others  within  those  entities,
        particularly during the period in which this  quarterly  report is being
        prepared;

(b)     evaluated the effectiveness of the registrant's disclosure  controls and
        procedures as of a date within 90 days prior to the filing  date of this
        quarterly report (the "Evaluation Date"); and

(c)     presented    in  this   quarterly  report   our  conclusions  about  the
        effectiveness  of  the  disclosure  controls and procedures based on our
        evaluation as of the Evaluation Date;

5.      The registrant's other certifying officers and I have disclosed,   based
on our most  recent  evaluation,  to the  registrant's  auditors  and the  audit
committee  of  registrant's  board  of  directors  (or  persons  performing  the
equivalent function):

(a)     all significant deficiencies in the  design  or  operation  of  internal
        controls which could adversely affect the registrant's ability to record
        process, summarize and report financial data and have identified for the
        registrant's auditors any material weaknesses in internal controls; and

(b)     any fraud, whether or not material, that  involves  management  or other
        employees who have a  significant  role  in  the  registrant's  internal
        controls; and

6.      The  registrant's other  certifying officers and I have indicated in the
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.


Date:  November 7, 2002         By:  /s/ Alfred S. Dominick, Jr.
                                     ---------------------------
                                     Alfred S. Dominick, Jr.
                                     President, Chief Executive Officer
                                     and Director




<PAGE>

                            CERTIFICATION PURSUANT TO
               RULE 13A-14 OF THE SECURITIES EXCHANGE ACT OF 1934,
                             AS ADOPTED PURSUANT TO
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002


I, John R. Polchin, Vice-President, Chief Financial Officer and Treasurer of the
Company, certify that:

1.      I  have  reviewed  this  quarterly  report  on  Form  10-Q of InteliData
Technologies Corporation (the "registrant");

2.      Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.      Based  on  my  knowledge,  the financial statements, and other financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.      The  registrant's  other  certifying  officers and I are responsible for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

(a)     designed such disclosure controls and procedures to ensure that material
        information relating to  the  registrant,   including  its  consolidated
        subsidiaries,  is made  known to  us by others  within  those  entities,
        particularly during the period in which  this quarterly  report is being
        prepared;

(b)     evaluated the effectiveness of the registrant's disclosure  controls and
        procedures as of a date within 90 days prior to the filing  date of this
        quarterly report (the "Evaluation Date"); and

(c)     presented      in  this  quarterly     report  our conclusions about the
        effectiveness  of   the disclosure  controls and procedures based on our
        evaluation as of the Evaluation Date;

5.      The  registrant's  other certifying officers and I have disclosed, based
on our most  recent  evaluation,  to the  registrant's  auditors  and the  audit
committee  of  registrant's  board  of  directors  (or  persons  performing  the
equivalent function):

(a)     all  significant deficiencies in the design  or  operation  of  internal
        controls  which could   adversely   affect the  registrant's  ability to
        record,   process,   summarize  and   report  financial  data  and  have
        identified  for  the  registrant's  auditors any material  weaknesses in
        internal controls; and

(b)     any fraud, whether or not material, that  involves  management  or other
        employees who  have a  significant role  in  the  registrant's  internal
        controls; and

6.      The  registrant's other  certifying officers and I have indicated in the
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.


Date:  November 7, 2002            By:  /s/ John R. Polchin
                                        -------------------
                                        John R. Polchin
                                        Vice President, Chief Financial Officer
                                        and Treasurer