FinSource, the specialist provider of administrative, software and infrastructure solutions to the financial services industry, has signed an agreement with US multinational giant, Sungard, to use the world's leading InvestOne system to underpin its back-office administration services.
InvestOne is a global, real-time, investment accounting solution that processes over $8-trillion in assets. It is used by 175 mutual fund groups, 16 of the top 20 U.S. banks, and 11 of the top 40 world banks. It has been voted the best back-office system in Europe every year since 1989.
FinSource Group CEO, Dale Lippstreu, says the SunGard deal will allow FinSource to offer business processing outsourcing (BPO) to the financial services industry on a global basis from South Africa.
"The development confirms Cape Town's position as an ideal BPO hub, particularly in the area of financial services, following the entry into the local market of State Street and JP Morgan in recent months."
Lippstreu says in addition to standard portfolio accounting, the InvestOne system is used extensively overseas for accounting in respect of alternative investments used in hedge funds and closed-end funds.
John Schroeder, a senior vice president and director of SunGard, says FinSource was a logical business partner, because it is the only company in South Africa to service the fund management industry through the front-, middle- and back-offices.
"This is in line with international trends. The front and back offices are inextricably linked, and those that can offer end-to-end solutions have the edge," he says.
The choice of Sungard as FinSource's software business partner comes after the selection of another Sungard product, Decalog, as FinSource's front office system of choice in 2002. Decalog is well established in South Africa and is used by leading financial institutions such as Old Mutual and Sanlam.
Sungard Systems has been represented in South Africa by Johannesburg-based financial systems integration specialist Ensemble since 1998.