Center of Financial Technologies: results of 2014
Center of Financial Technologies Group (CFT), provider of solutions for financial market participants in RF and CIS countries, summarized results of 2014. Consolidated revenues from sales of core banking products, performance of banking business and participation in the payment market for the reporting period increased by 8% as compared to 2013 results and constituted RUB 16 bln.
Despite the downturn and economic and banking uncertainty of 2014, the Company has managed to retain positive growth dynamics in the banking automation market. Growth of TOP-50 banks and foreign-invested banks’ share in CFT’s portfolio of customers can be considered a major achievement of the previous year. 470 license agreements for CFT banking systems have been signed with credit institutions during the period under review, 16 of them have been signed with new client banks. These include: VTB 24, Russian Agricultural Bank, Credit Bank of Moscow, Novikombank, Devon Credit Bank, Vega-Bank, Bank Yenisei, Idea Bank, Moscow-Paris Bank, Central European Bank, Central-European Bank, Adamon Bank, Korea Exchange Bank Rus and others.
In 2014 banking systems were implemented in OTP Bank, Russian Standard Bank, Nordea Bank, FIA-Bank, Orenburg Bank, etc. Investtorgbank has all its key business processes automated through CFT-Bank system. CFT-Bank has allowed RN Bank to implement complicated integration of a new ABS with the front-office system applied in the bank and perform a large amount of work to upgrade factoring transactions functionality. One stage of a large-scale project aimed at reducing the number of existing ABS has been successfully finished in MDM Bank.
In 2014 Idea Bank and Adamon Bank has been transferred to CFT’s outsourcing. Korea Exchange Bank Rus is being partially outsourced: CFT performs part of IT functions – customer service and CFT-Bank system maintenance.
In 2014 CFT has dynamically developed its processing business represented by Golden Crown payment service system, CardStandard processing center, Faktura.ru multibank platform designed for online-banking and Gorod universal solution for payment acceptance.
In 2014 Bank of Russia has confirmed Golden Crown’s status of a socially important payment system, and included Credit Union “Payment Center” (Ltd.), an operator of the Golden Crown, on the register of significant credit institutions in the payment services market.
In 2014 more than 31 mln retail transactions for the total amount of RUB 608 bln have been performed via Golden Crown – Money Transfer service. 119 more institutions in Russia, near and far abroad countries became partners of the service. Expansion to new markets made the service available in 19 countries of the world and increased total service infrastructure to more than 48 thousand of locations.
Golden Crown – Loan Repayment service, that offers loan repayment, reloading accounts and cards of any bank’s clients and largest RF microfinance organisations, has increased its service infrastructure by 30% and extended its network to 12 thousand locations throughout Russia. Total service turnover as compared to 2013 grew by 64% and amount of payments grew bigger by half.
Golden Crown payment system has generalized its experience of creation of financial service stores in close technological cooperation with microfinance market participants and united a range of services offered to MFI into a unified product complex – Golden Crown – Services for MFI. Clients using a complex solution for MFI include leaders of microfinancing in Russia: Domashniye Dengi, Viva Dengi, BistroDengi, Finterra, Nano-Finance, Cashelot, Express Dengi, etc. In 2014 microfinance organisations being partners of the Golden Crown have released more than 250 thousand cards, total amount of loans issued to the cards increased RUB 5 bln.
In 2014 CFT has brought to the market a new type of a gift card – reloadable gift cards for corporate clients. Besides, the company has introduced branded gift cards for corporate customers – myGift.ru. In total, 22 gift card products have been released and are successfully operating on the basis of CFT technologies.
CardStandard processing center has also achieved major results. In 2014 projects on migration of 45 banks’ card portfolios to CardStandard processing center’s facilities have been successfully implemented. Total number of partner banks committed their card business to the trust of CardStandard processing center exceeded 100. Aggregate issued securities portfolio under service of processing provider comprises 23 million of cards (12 months growth – 35%) and acquiring infrastructure has exceeded 22 thousands of devices throughout Russia.
In 2014 a solution for HCE mobile applications has been developed and brought into operation, it allows to re-evaluate the view of contactless NFC payments and set the stage for their mass usage. CFT-developed contactless mobile payment solution became the first HCE application in Russia designed in full compliance with Visa payment system’s specification.
During previous year one of the leading aggregators of mass payments market – Gorod Federal System – obtained 50 more agents as its partners and the number of services available for payment increased by 1,6 thousands.
A whole range of new financial organisations acceded to the existing partners of Faktura.ru in 2014, including Nordea Bank, Baltic Investment Bank, IntechBank, Investment Trade Bank, SIBES bank (JSC), Idea Bank, National Standard CB, Uraltransbank, Miraf-Bank, etc. Following the results of 2014 number of partners of Faktura.ru exceeded 340 banks and branches. As compared to 2013 the number of private customers of partner banks of Faktura.ru using internet bank increased by 62%, corporate – by 22%. Number of payments made via internet banking service has increased by 60% and the same indicator for mobile application has tripled.
“2014 was a highly productive year for CFT GC, despite the complicated economic situation in the market, – says Andrey Visyaschev, Chairman of the Management Board. – we have managed to improve qualitative and quantitative characteristics of solutions for our customers, proceed with further development of complex outsourcing, when we offer banks a total package of software decisions and a range of processing services. I do believe that in a new social and economic context this offer will be particularly topical”.