CFT in TOP-3 Major Bank IT Vendors

CNews Analytics agency has published its annual review "IT in Banks and Insurance Companies", which includes a rating of major bank IT vendors. The rating is based on the results of the activity of market participants in 2017. Center of Financial Technologies remained second in the rating of Russia's major IT developers.  

According to CNews analysts, the actions of the Central Bank of the Russian Federation in many ways determined how financial institutions used their IT budgets in 2017.  

Since 2013, the Central Bank of the Russian Federation has taken active steps to improve the banking industry. Over the past five years, licenses have been revoked from hundreds of banks, the number of operating banks has almost halved from 956 (as of January 1, 2017) to 508 (as of October 1, 2018). In 2017, 62 credit institutions lost their banking licenses; over the first nine months of 2018, another 53 banks were closed in Russia. In addition, the Central Bank temporarily took over the management of a number of large banks (Otkritie, Binbank, Promsvyazbank), starting the procedure for their rehabilitation. In early 2018, Promsvyazbank was transferred to the Federal Property Management Agency, it is planned to turn it into a base bank for government orders of the defense-industrial complex (DIC). Binbank and Otkrytie, in turn, will be merged starting from January 1, 2019 as part of their rehabilitation process.  

The measures taken by the regulator are paying off. Over the past 1.5 years, the banks' assets have increased from $ 80.1 trillion as of January 1, 2017 to $ 88.7 trillion as of September 1, 2018.

The rehabilitation of the banking industry has a positive effect on the IT supply to the financial sector. According to the CNews rating, by the end of 2017, this segment of the IT market has grown by almost one third (+ 29%) in terms of rubles.

At the same time, the growing influence of the state affects the structure of banking IT procurement, with the focus on centralization, stabilization, controllability of the business, and compliance with the requirements of the regulatory activities of the CBR.

The current consolidation of the banking sector is creating demand for high-performance solutions, Deputy Chairman of the Board of CFT Group Andrey Fomichev comments on the CNews rating: "Mergers and acquisitions in the large bank segment are common today. Larger market players need new high-performance solutions, both at the application level and at the system and hardware level."

Read the review "IT in banks and insurance companies"