Longtop Financial Technologies Limited ("Longtop") (NYSE:LFT), a leading software developer and solutions provider targeting the financial services industry in China, today announced that it has won a contract from a leading National Commercial Bank to develop a customized Wealth Management IT system to support the rapid growth of the customer's private banking operations.
Under the terms of the contract, Longtop will develop a fully integrated system that provides all front, middle and back office support services required by the customer. The objective of the system is to help the bank optimally manage its private banking customers; support targeted marketing initiatives; and provide a comprehensive set of wealth management functions including product management, risk management and compliance, portfolio and accounting management, as well as performance reporting. The system will be implemented by the bank's headquarters and used nationwide by its private banking divisions.
"We are pleased with our first material contract win in the area of wealth management, a new and rapidly growing segment in China's banking industry where we can leverage our leading market position in management related solutions," said Weizhou Lian, Chief Executive Officer of Longtop. "Our timely investment in high-end consulting and our industry-leading delivery capabilities have led us to this contract win and position us well to capitalize further on the opportunities in this market."
Private wealth is growing rapidly in China because of three decades of rapid economic growth and thriving entrepreneurship. The population of 364,000 High Net Worth Individuals (HNWI) in China became the fourth largest in the world in 2008, according to the 2009 Asia-Pacific Wealth Report published by Merrill Lynch and Capgemini. In their 2010 World Wealth report, Merrill Lynch and Capgemini project that the combined wealth of Asia Pacific's HNWI is estimated to grow at an annual rate of 8.8% until 2018, outpacing the global average of 7.1%, with China and India likely to lead this growth.