Fundtech's ASP business tops 100 clients worldwide
Fundtech Ltd. (NASDAQ: FNDT), a leading provider of payments, cash management and settlement software and services, announced that its ASP (Application Services Provider also known as managed services) business has experienced significant growth worldwide in 2003. Globally, the company's ASP revenue grew over 40% in 2003; in the US market, sales grew almost 150% year over year. The company now provides ASP services to over 100 banking and brokerage clients throughout the world from its facilities in Atlanta GA, San Leandro, CA and Zurich Switzerland.
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Fundtech provides the financial services industry with a variety of ASP services such as wholesale payments, cash management, disaster & recovery services and financial communication networking services.
The company operates the world's largest SWIFTNet service bureau, and is aggressively expanding this business through a series of geographic and industry specific distribution partnerships. It recently announced its expansion into Scandinavia through an agreement with BGC (previously Bankgirocentralen), and is planning to enter the US market shortly.
Among the clients that currently use ASP services provided by Fundtech are: Barclays Bank SA, Deutsche Bank AG, Merrill Lynch Capital Markets Bank Ltd., First Charter Bank, Colorado Business Bank, and National Commerce Financial Corp.
Fundtech's ASP growth is part of a global trend that industry analysts have been following closely. TowerGroup projects that outsourced IT services in the financial services industry will grow at two and a half times the growth rate of overall IT spending in financial services; and that payment will be one of the fastest growing sub-segments.
Analysts attribute this growth in the financial services industry to a few key factors:
- Shifting business modes away from fixed costs in favour of variable costs
- The need to stay competitive through a combination of lowered operating expense and expanded service offerings, available through newly available applications
- A trend toward "Strategic Cost Management," the process of focusing human and financial resources on activities that will deliver a competitive advantage to customers.
Speaking on the expansion of Fundtech's ASP business, Reuven BenMenachem, Fundtech CEO, said "Our ASP business has experienced significant growth in the past year which is due to our commitment to this fast growing market. We are seeing interest and demand from a wide variety of clients globally, which challenges the perception that managed services is strictly for small banks. Banks of all sizes are seeing the benefits of having experienced service providers manage their day-to-day operations - thereby saving them money and delivering a more reliable service."