Governance, Risk & Compliance

Governance, Risk & Compliance

May 17, 2011

Longtop Financial Technologies to Provide Risk Management Solutions for Commercial Bank in China

Longtop Financial Technologies Limited was awarded a contract to provide risk management solutions for a leading city commercial bank in China, according to a company statement. The company provided data integration and Business Intelligence (BI) solutions to the bank previously.

Longtop develops software and provides solutions for financial services in China. Longtop will put in an Asset Liability Management (ALM) system for the bank, bringing them into compliance with China Banking Regulatory Commission (CBRC) requirements and the Basel II accord.

The ALM system analyzes a bank's risk profile of financial products. It is a growth sector for the company.

“We are facing the tremendous opportunity that many banks will implement or replace their ALM systems in the near term in light of the more rigorous regulatory requirements that followed the 2008 financial crisis. With our deep domain know-how and wide spectrum of reference cases, complemented by our capabilities in consulting, localization, mature implementation methodology and processes, as well as data integration with our proprietary BI solutions, we believe that we are well positioned in this market. We expect to gain more market share in the ALM solutions area, and even more in Risk Management solution areas,” Weizhou Lian, CEO of Longtop, said in a company statement.

Risk management is an “investment hotpot” in the management solutions sector, as it is expected to increase at a Compound Annual Growth Rate (CAGR) of 23.8 percent, the company said.

Longtop was ranked No. 2 in the market segment and had an 8.8 percent market share in 2009.

TMCnet reports that Longtop has implemented many ALM projects working with larger commercial banks, national banks, big-city commercial banks and rural commercial banks in China.

Longtop is a software development and solutions provider for financial services based in China. In addition, the company said it is the “highest ranked Chinese financial technology provider on the Global FinTech 100 survey of top technology partners to the financial services industry.” Also, IDC (News - Alert) named Longtop the No.1 market share leader in China's Banking IT solutions and the No.2 market share leader in China's Insurance IT solutions during 2009, the company said in a press release.

Longtop has six solution delivery centers, three research and development centers, and 95 ATM service centers, which are in 27 out of the 31 provinces found in China. Its headquarters are located in Beijing.

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Ed Silverstein is a TMCnet contributor. To read more of his articles, please visit his columnist page.

Edited by Jennifer Russell

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