CFT Group: Annual Results of 2012
Center of Financial Technologies (CFT Group), solutions provider for the financial market of Russia and the CIS, has announced 2012 annual results. The total revenue from sales in all business directions, represented by the platform and products for core banking, products for all kinds of banking activity and participation in the payment market, has made 11.8 billion rubles over the reporting period, which is 32% as much as in the previous year. The growth was both due to the customer base extension by 77 new credit organizations, and due to intensive development of relations with current customers, the total number of which as of the end of 2012 has exceeded 500 banks in Russia and the CIS.
In 2012 CFT continued integration of the new sales logic for core banking products that are represented in the Company portfolio as a universal Platform and a set of platform-based applications for separate bank business processes, as well as preset financial products for different kinds of banking activity. This logic significantly simplifies relations between CFT customers and the company as IT provider, and accelerates the process of purchase and integration of required products, which conforms to modern banking requirements. In 2012 CFT performed 368 sales using this business scheme, 16 of which were to new customer banks.
New CFT product, outsourcing of the Platform and products for banking activity, has also been successfully sold during the year. The peculiarity of this product is that it is not outsourcing of the typical solution of an IT provider but of individual configuration used by the bank in the necessary scope.
With all its high technology, the banking market is nevertheless very careful in accepting new IT approaches. This is why CFT is proud to state that its customers put great trust in the Company: during the first year the outsourcing model of service at the purchase of the Platform has been chosen by six credit organizations. Two of them, Starbank and Expobank, transferred the IT support of their own business processes to outsourcing in CFT data processing center. Thus the project of CFT Group on organization of complex outsourcing of Expobank IT infrastructure won the Outsourсing Russian Award and was declared the best outsourcing project of 2012 in the field of Russian information technologies.
Outsourcing is one of CFT’s major growth directions; therefore a range of events is planned for 2013 in order to improve the quality of the Platform and application outsourcing. In particular, it is planned to perform external audit of CFT outsourcing services, and also the Company has begun introducing the new Platform 2 MCA as the main one, which will provide customers with higher product performance characteristics – great efficiency and reliability, and improved opportunities for bank business development.
One of the most popular CFT products over the last years has been the solution for organization of instant retail transfers promoted under the brand “Golden Crown – Money Transfers”. Over 2012, 99 credit organizations from Russia and the CIS linked to the product. The high growth dynamics of “Golden Crown – Money Transfers” is achieved due to the combination of the use of all current money transfer means and technologies that improve the convenience of transfer performance by bank tellers and end users, focus on creation of service infrastructure “within walking distance”, and competitive rates and large-scale marketing initiatives.
All this in general allowed the partners of “Golden Crown – Money Transfers” to continue showing growth performance ahead of the market growth in 2012 as well, which was respectively fixed in CFT earnings dynamics. In all, over the past year 26 million transfers have been performed using “Golden Crown – Money Transfers” to the amount of over 424 billion rubles, which has exceeded the previous year’s performance by 44% and 67% respectively.
Another CFT product most actively sold in 2012 is solutions for issue and acquiring by credit organizations of payment cards of international payment systems VISA and MasterCard based on CardStandard processing center. These products help CFT customers not only optimize investments in card business but also provide end users with high-quality service and advanced functionality of card products of international payment systems. In 2012 these products were acquired by 14 new customer banks. The total number of cards serviced using CardStandard products has exceeded 16 million.
Among the main directions of CFT development are cooperation and integration projects that result in infrastructure development and appearance of opportunities for improvement of existing and creation of new Company products. Cooperation with the leaders of payment industry helped launch successful projects unique for the Russian payment market.
A product has been launched in partnership with MasterCard, which allows banks to organize the issue of co-badged cards of two payment systems – international MasterCard and Russian Golden Crown. This product combines MasterCard payment application with Golden Crown payment services, allowing accepting such cards both in the global service network and in the Golden Crown service network, thus extending the retail payment infrastructure for cardholders.
In partnership with the Chinese UnionPay payment system, the co-branded “Golden Crwon – UnionPay” card has been issued, which enjoys high popularity in Russia’s Far East and Siberia.
CFT business growth was supported by the Company intensive development; over the year, the number of employees has reached 2,190 and a wide regional network has been extended. At present CFT Group is represented by: Research and Development Center in Novosibirsk, R&D centers in Russia’s leading economic regions that operate on a unified technology in terms of the tasks of all CFT customers, Marketing and Sales Center in Moscow, as well as two foreign representative offices.
“For us 2012 was the year of corporate development,” says Andrey Visyaschev, Chairman of the Board of CFT Group. “It took us less than a year to create a unified system of R&D centers, diversified in territory, but centralized in unified standards of development and solution of the tasks of our customers. Successful development of an IT company is only possible when investing in top-ranked specialists. CFT is a team of professionals in the field of development of products for the financial market, which is why we have even more ambitious development plans for 2013.”