Best Technology Provider: Surecomp

Runner-up: Misys
Commended: China Systems
2007 Winner: Surecomp

There are not many software vendors that can build software to the exacting standards of the banking world – and fewer still capable of supporting banks’ increasingly complex trade finance requirements. Indeed, while the software industry has largely consolidated around a handful of major vendors offering extensive platforms, this award was basically a three-horse race between three respected specialists: Surecomp, Misys and China Systems.

Despite a strong showing by Misys, Surecomp once again emerged as the winner for the second year running.

Joel Koschitzky, Surecomp’s Chairman and CEO, believes that the key deciding factor is that the company’s software has been built from the ground up over the past two decades and evolved by integrating tried and trusted technology, rather than incorporating the latest fad in an industry renowned for its short-lived fashions.

“In each of our product lines there are exciting new technological developments,” says Koschitzky, “We have released a universal configuration module (UCT) in our IMEX back office trade finance solution. This module provides total user control in the design of screens. We have released a transaction application (TransApp) middle office module in our allNETT front office trade finance solution. This enables two-way communication between corporates and the bank, and further enhances the straight-through processing (STP) of the system.

“We released the trade-services utility (TSU) version of our Java J2EE allTRA back office trade-finance system. Additionally, we released the application service provider (ASP) version of our new allFAC receivables management solution. All these developments are technology driven and exemplify the Surecomp mission statement.”

More importantly, there has been a flow of new deals and new customers during the past year, despite the credit crunch: China Minsheng Banking Corporation in Beijing licensed Surecomp’s comprehensive STP end-to-end trade finance solution, De Lage Landen in the Netherlands – a member of the Rabobank Group – licensed allFAC globally, Landisbanki in London licensed IBSnet and allNETT, Produbanco in Ecuador and Panama licensed allNETT and, in Venezuela, Banco del Caribe licensed the Java J2EE version of Surecomp’s comprehensive STP end-to-end trade finance solution.

However, the credit crunch has nevertheless had an impact. “The effect of the credit crunch has been severe in the international banking system, particularly in the United States and Europe. New projects and initiatives in the trade finance arena have been frozen,” says Koschitzky. However, 2007 was nevertheless an “excellent” year for Surecomp in terms of both net income and revenues, he says.

Whatever the economic outlook, the shift from letters of credit to open account will maintain momentum, believes Koschitzky, especially as more banking organisations increase their own emphasis on trade finance. “We are seeing significant movement in tier two and tier-three banks entering the trade-finance market for the first time.”

Compliance and anti-money laundering regulations, together with the market opportunity of providing a genuinely tailored, individual service to customers, is driving tier two and tier three banks to upgrade to more sophisticated trade finance systems. “We are seeing across the globe a growing need for receivables-management solutions,” he adds.

While many banks may be struggling, investment in trade finance and the systems to support them remain a must. “The necessity and importance of KYC – know your client – has been drummed into financial institutions for years. The current crisis brings to the forefront the necessity to KYV – know your vendor. Too many banks and financial institutions are neglecting to closely examine the long-term viability of their technology vendors. Some institutions are literally putting their operations at risk by failing to perform detailed KYV on their vendors,” says Koschitzky.

“The effect of the credit crunch has been severe in the international banking system, particularly in the United States and Europe. New projects and initiatives in the trade finance arena have been frozen.”

Joel Koschitzky, Surecomp