Misys (FTSE: MSY.L), the global application software and services company, today celebrates the 15th anniversary of its business in Russia as the latest of the country's leading banks, SOYUZ Bank, chooses its core banking solution, Misys Equation as well as Misys Trade Innovation to support its expansion strategy.
SOYUZ Bank, one of the fastest growing universal banks in Russia, is developing all areas of its business to meet increasing demands from its retail, corporate and investment banking customers. Having evaluated several solutions in the market, including one from Infosys, the bank selected Misys because of its many implementation successes in the region, the level of localisation of the solution and the experienced professional services team that are ensuring the project success.
Misys is the longest serving international banking solutions provider in the CIS. Bank SOYUZ will implement its integrated solution comprising the core banking system, Misys Equation, and the latest version of the award-winning trade finance system, Misys Trade Innovation. This solution will enable SOYUZ Bank to support the whole of its universal banking business, significantly reducing operating costs and improving reporting and analytical facilities.
Misys Equation will be the bank's technological platform for the future, as Vladimir Smirnov, Deputy Chairperson of the Board, comments: "We are constantly improving the way we deliver results to our customers and we needed a solution that would support our development over the foreseeable future. Misys Equation gives us a solid core platform for the overall IT upgrade we need, coupled with one of the best trade finance solutions available."
Guy Warren, Executive Vice President and General Manager of Misys Banking comments, "There has been an explosion of growth in the whole of the Russian banking sector recently. The consumer lending market has grown twice as fast as the corporate loans market with volumes of consumer loans growing by more than twelve times just over the last four years. Financial institutions in the region have benefited from our expertise and solutions for 15 years, as we have helped them expand their businesses and drive value to their customers in retail banking, corporate banking and treasury. Russia and the CICIS is a very important market for us as we continue to focus on high growth regions as part of our business strategy. We look forward to continuing to support the Russian economy and adding value to the institutions and citizens in the future."
Misys has been delivering solutions that drive value to customers in Russia and the CIS since it opened its first Russian office in Moscow in 1992. It has helped many of the region's largest and rapidly growing financial institutions build their businesses and deliver results to their customers. During the last 15 years Misys has provided solutions and expertise to clients including VTB, Alfa Bank, Raiffeisen Bank Moscow, International Moscow Bank, AK BARS, Tatfondbank, Kazkommertsbank (Kazakhstan), AVAL Bank (Ukraine), TuranAlem Bank (Kazakhstan), National Bank of Belarus and First Ukrainian International Bank. More than 30 banks now benefit from Misys solutions, including core banking systems, trade finance, treasury and capital markets solutions.
Separately, A new agreement between Misys, the global application software and services company, and Pricing Partners, the independent valuation solutions firm, has been finalised today, creating a unique solution which enables financial institutions to gain more accurate, independent pricing for standard and hybrid exotic derivatives with an extensive asset classes coverage.
Pricing Partners' multi-asset pricing engine, Price-it, will be integrated with Misys' flagship solution for cross-asset derivatives trading and structured products - Misys Summit FT. The new integrated solution will take unique deal representations from both solutions and create a single payoff description for trades. By providing access to all Price-it capabilities directly from the Summit solution, firms will be able to manage complex derivatives positions more efficiently by automatically valuing the latest innovative products including inflation, interest rate, equity, credit, commodities and FX derivatives, as well as hybrid products.
Dan Cohen, Misys Summit Product Manager comments: "Across the sell side and buy side, firms face mounting pressure from investors, regulatory authorities and accounting standards bodies to obtain valuation of financial products independently of those offered by the trading floors of large investment banks. This agreement strengthens our customers' ability to gain accurate and independent pricing and valuation for a greater variety of financial instruments, and fits with our strategy to create more value to our customers through winning partnerships."
Misys has an exclusive right to promote and resell the integrated solution as well as the Excel version (stand alone) of Price-it in US and Asia. As part of an exclusive agreement, Pricing Partners has committed to not work with any competitor of Misys which would allow a competitor to resell, licence or offer Pricing Partners Products either as a standalone or integrated solution.
Eric Benhamou, CEO Pricing Partners says: "Misys is a leading technology firm in terms of innovation and experience in today's market, and we believe that joining our derivatives pricing functionality with Misys Summit's optimised portfolio analytics and front-to-back STP creates a powerful solution that increases clients' ability to obtain independent valuation and time to market with regard to financial product innovations. This agreement will also allow us to leverage their significant global footprint as we target more treasury and capital market participants, particularly in Asia and the Americas as well as the UK market."
Cubillas Ding, Senior Analyst at Celent comments: "With a heightened scrutiny on valuation practices from investors, regulators and ratings agencies, institutions are looking for more rapid options to go-to-market with derivatives pricing. There is a need for greater coordination between deal and portfolio risk management activities—which includes, at the bare minimum, alignment and linkages between deal pricing and portfolio re-valuation."
The fully integrated solution will be available to the market in Q2 2008.