CFT became a leader among IT suppliers for banks
CNews Analytics Agency has published an updated ranking of «IT in banks and insurance companies 2014». The Center of Financial Technologies took the lead in the ranking of major Russian IT suppliers for banks by “Profit from financial sector projects in 2013”.
In 2013 profit of CFT GC’s received from projects in the financial sector grew by 26.85% as compared to 2012 and comprised RUB 12,757,957 ths.
According to analytics, the Russian core banking market is showing only 5–10% growth in 2013. The number of new signings for core software is dropping off and this is not only due to crisis developments in economics. The market is close to be glutted, most banks have already implemented core banking systems and they tend to focus on support and upgrade projects bringing in about two-thirds of revenues to the developers of core banking systems.
Key priorities for credit institutions are risk management, credit scoring and promotion of new products and services. To solve this, banks would rather opt for “short” IT projects with a pay-back period less than a year. Banks started cutting costs.
Within this framework, outsourcing towards cost optimization became as relevant as ever. “Outsourcing of our CFT-Bank system will be a key trend of CFT’s software business for the short-term, – notes Andrey Fomichev. – Among notable deals of 2013 are transit to IT outsourcing of Stromcombank and Sibbusinessbank both being part of Expobank since 2013. Another addition to the CFT customer fold was Expo Capital and Miraf-Bank. CFT-Bank system is currently outsourced by nine credit establishments”.
Despite the crisis, banks are ramping up their technological effectiveness. With rapidly implemented mobile applications and mobile proximity payments, the market definitely has perspectives for growth. Leading players of core banking market, integrators and financial institutions, treat the current situation as a challenge and prepare for the times when they can make maximum use of their IT capacities towards new achievements.