Center of Financial Technologies: Annual Results of 2013

Center of Financial Technologies (CFT Group), solutions provider for Russian and CIS financial market participants, has announced 2013 annual results. The total revenue from sales in all business directions, represented by the products for core banking, products for all kinds of banking activity and participation in the payment market, has made 14.9  billion rubles over the reporting period, which is 25% as much as in 2012.
 
In 2013 CFT continued implementation of strategy for sales of core banking products based on the logic of the Platform and platform-based functional Applications. During the reporting period CFT Group has signed 517 contracts for implementation of CFT-Bank Application complexes, 9 of which were deals with new customer banks. The customer portfolio of the company’s software business gained the banks Investtradebank, National Standard, Promselhozbank, Russian South Bank, UBS Bank and others.
 
The year 2013 brought new projects at BINBANK where CFT Applications for automation of internal activity and quick budget control of the financial organization were successfully implemented, and at Baltinvestbank where 6 branches and 42 additional bank offices in Saint Petersburg and other Russian regions were transferred to the new advanced information platform. Implementation projects were also completed at Nordea Bank, Kedr Bank, Eurocommerce Bank, Europlan Bank, National Bank of Tajikistan and other.
 
During the reporting year there were several successful projects on the transfer to complex IT outsourcing based on CFT-Bank. In particular, Stromkombank and Sibbiznesbank which became part of Expobank in 2013 completed their transfer projects.  Bank Expo Capital and Baltic Development Bank have also selected CFT-Bank outsourcing and CFT currently provides their IT support. An agreement was also signed with Miraf-Bank. The outsourcing model of servicing of financial institutions in case of their acquisition of the Platform and Applications allows the banks to minimize the costs for maintenance of the hardware system and software infrastructure.
 
CFT considers outsourcing as one of the key development areas. Therefore the company implemented a number of measures aimed at improvement of the quality of the Platform and Application outsourcing services. In particular, a project on external audit of internal control systems of CFT-Bank outsourcing services was conducted. Experts from PricewaterhouseCoopers confirmed the high quality of organization of outsourcing processes at CFT.
 
CFT is developing its own data center infrastructure in accordance with Tier 3 safety level of TIA-942[1] standard and it is using external data centers to solve sub-tasks. In particular, in 2013 CFT signed a contract with Rostelecom OJSC.
 
A significant impulse to the development of CFT processing was given by the extension of the pool of partners engaged in issue and acquiring of cards of VISA and MasterCard international payment systems on the basis of CFT data processing center marketed under CardStandard brand. During the year of 2013 partner agreements were signed with 40 banks and the total issue of cards processed by CardStandard independent processing center exceeded 17 mln. The Banks which choose CardStandard for servicing of their card business also actively use other CFT services including “Faktura.ru” Internet banking service, service for collection of utility and other bulk payments within the “Gorod” system and “Golden Crown - Loan Repayment” service. In May 2013 CardStandard processing service launched a new project on the issue of prepaid cards for microfinance institutions, and within seven months more than 30 microfinance institutions became the service partners.
 
One of the fastest-growing CFT products for a number of years has been a solution for instant retail money transfers promoted under the “Golden Crown – Money Transfers” brand. The overall volume of transactions during the year 2013 amounted to RUB 572bln which was 35% higher than in 2012. The overall number of transactions exceeded 31 mln. Partner agreements were signed with more than 100 banks and trade networks in Russia and CIS countries making the total number of service participants and partners exceed 550. The service infrastructure has grown by more than 20%. Golden Crown’s partner network obtained such financial market players as ROSBANK, ROSGOSSTRAKH BANK, BINBANK, Sobinbank, Baltinvestbank, Centr-invest, VTB-Kazakhstan, National bank of foreign economic activity (Uzbekistan), TBS Bank (Georgia) and Azerpoct.  Active development of service infrastructure happened largely due to the recognition of Golden Crown as a socially important payment system by the Central Bank of Russia. Additionally, in 2013 the Golden Crown – Money Transfer service expanded to a number of new markets including  Czech Republic, Mongolia, Vietnam and Israel. Thus, the service is currently available in 15 countries. 
 
“2013 was a key milestone for us with respect to product development, - says Andrey Visyaschev, Chairman of CFT Management Board. – We delivered a complex of “multithreaded applications” which offer brand new opportunities in information system performance and upgrade banks to a new level of integration. Modern architecture tools used in the New CFT-Bank, our flagship solution, significantly accelerate such processes as setting up banking products and generating mandatory reporting while guaranteeing its high quality. All Golden Crown – Money Transfer partner banks were successfully converted to next generation program solutions. We have also made a number of significant steps to take our customer support service to the next level. In 2014 we plan to implement several large-scale projects in banks, and we are expecting a growing interest of credit institutions to IT infrastructure complex outsourcing model”.
 

[1] TIA-942 is a standard developed in 2005 by Telecommunications Industry Association (TIA), it is a recognized international standard of designing and infrastructure of data processing center.