NZX listed financial technology company, Finzsoft Solutions (NZX:FIN) has contracted technology and services firm Datacom to manage its professional services division under a five-year deal worth $20 million.
Finzsoft managing director, Andrew Holliday, said the move would allow his company to focus on its core business of product development, and enable it to better leverage Datacom’s professional services arm “to better align with the evolving needs of customers.”
“We believe that a deep product focus is the best way for Finzsoft to continue to meet the growing demands of modern financial institutions around the globe,” Holliday said.
Finzsoft issued a press release on 1 December saying it had “extended its relationship with technology and services firm Datacom to an alliance.” However it had been rather more specific in its announcement to the NZX the day before, saying that Finzsoft Solutions (New Zealand) Limited, a the subsidiary of the listed entity, had agreed to transfer to Datacom the existing staff from its Services division and that Datacom would “provide to the Finzsoft group software support and development services.” Customer contracts will remain with Finzsoft.
Datacom, Finzsoft said, would establish a fintech centre of excellence for Finzsoft and a dedicated systems integration capability, and would “undertake continuous improvement in relation to the services to be provided.”
According to Finzsoft it chose Datacom because the latter is “a New Zealand leader in applications development and infrastructure provisioning and management, able to provide software support, development and professional services to the Finzsoft group not only in New Zealand and Australia but also in Asia through its regional offices.”
Finzsoft said it expected the arrangement would “create new synergies between the two companies, creating significant value for both organisations and providing greater flexibility for the Finzsoft group,” and that Datacom would provide assistance “to enhance Finzsoft's offering of its leading digital - API core and vertical banking software products and its software-as a-service offerings.”
Finzsoft looking to raise capital
Finzsoft is also looking to raise further capital “to fund its expansion plans for Australia and Asia in respect of its disruptive technology, particularly in the credit union, digital – API banking and SaaS areas,” it said.
“The fintech sector globally and regionally is set for exponential growth. A recent report from Frost & Sullivan forecasted the Australian fintech sector will grow at a CAGR of 76.36 percent and reach $A4.2 billion by 2020, with sharp growth expected in 2017,” Finzsoft said.