Asseco Group enters the Philippine market
Asseco has acquired over 60% of shares in Nextbank Software Sp. z o.o., a company from Kraków, which provides solutions to the banking sector in the Philippines. The company is a manufacturer of a core banking system with the option of mobile access for customers, available in the cloud. Thanks to the transaction, the Asseco Group will strengthen its international position in the financial sector and enter a completely new market.
The system developed by Nextbank is fully adapted to deposit and credit products specific for Southeast Asia and is integrated with both a mobile application for bank advisers, enabling them to execute transactions outside a branch, and with a mobile banking application offered to clients. The solution is made available in the cloud and provides a set of functionalities necessary to run a mid-sized bank. Currently it operates in 5 Philippine cooperative banks.
The Asseco Group has been joined by a very substantive and business-oriented team. Nextbank is still a small company, but it has already carried out implementations in 5 banks in the Philippines and is currently running further implementations. It has a very interesting product - a core-banking system with the possibility of mobile access for bank customers, which is available in the Amazon cloud. It is fully adapted to the needs of local institutions. We are also counting on the possibility of achieving synergy in the area of our product portfolio in the future, as well as on the exchange of know-how between our teams, said Zbigniew Pomianek, Vice President of the Management Board, Asseco Poland.
There are currently over 500 banks in the Philippines, 450 of which are cooperative banks with limited IT investment budgets and limited access to qualified IT staff in the provinces. For the Asseco Group, the new investment means first of all the possibility of conducting business operations in the Philippines, where no implementations have been carried out so far. It is also an impulse to expand the company's product offer.
Thanks to Nextbank joining the Asseco Group, we have strengthened our potential in the financial sector, which is one of our key areas of operations and currently generates 40% of the Group's total revenues. Our services and products for banks are developed by a team of over 4,000 experts. We deliver them to financial institutions in more than 30 countries on 3 continents. We are present in Central and South-Eastern Europe, in Portuguese-speaking countries, but also in Russia, Georgia, Gibraltar and Vietnam. We have completed over 1,000 implementations with more than 650 customers. Currently over 500 banks use our core banking system. Thanks to Nextbank joining Asseco Group, we have gained an opportunity to enter a completely new market - the Philippines is a region of the world where the Asseco Group has not operated so far, said Marek Panek, Vice President of the Management Board, Asseco Poland.
Joining the Asseco Group is a great opportunity for us to scale our business quickly. Already the first 18 months were very intensive because in such a short time we managed to build a complete product and implement it in 5 financial institutions. The success and satisfaction of these organizations very quickly translated into the decision of several other banks, with which we are currently conducting implementations and the interest of several dozen, with which we are beginning talks. The capital received from Asseco will above all enable us to significantly expand our implementation team and address the demand, which currently exceeds our operating capabilities, as well as to build further complementary systems which will become part of the platform and enable our clients to transform into innovative fintech organizations, fully ready to compete on an equal footing with the emerging fintech startups, said Krzysztof Kogutkiewicz, CEO, Nextbank Software.
Over 20 years of Asseco's experience in building central systems is also very valuable capital of knowledge, which will allow us to avoid potential mistakes. Finally, entering new markets, especially Indonesia, Myanmar and Vietnam, will be much easier with such a partner supporting us, he added.
The transaction value of the acquisition of shares in Nextbank Software is PLN 17 million. There are no plans to merge the Kraków-based company with the Asseco Group.
Asseco Poland is the largest Polish IT company listed on the Warsaw Stock Exchange (WSE) and the sixth-largest producer of software in Europe. It leads international Asseco Group, which operates in 54 countries and employs over 24,000 people. The development of software for banks is one of the key business areas of Asseco Poland, which offers solutions which meet the latest trends in global banking. Asseco has completed over 1,000 implementations with more than 650 customers. Currently over 500 banks use our core banking system.