News
Outsource deal looks far beyond banks
29 July 2005 / National Business Review - by Kate McLaughlin
A highly specialised payment solutions company has launched for a new offer that may change the face of finance as smaller companies get to compete with their big brothers.
A unique outsourcing deal signed in Australia involving a New Zealand company, allows a finance company to affordably offer a credit card product to its clients.
The new service, from Auckland-based payment solutions company GFG Group, allows credit, debit and finance cards to be launched without the traditional overheads and time constraints of the past. It targets small-ticket finance companies, which have traditionally been at a disadvantage in the card market because they don't have the bargaining muscle of the banks.
The project is being implemented in Australia, in partnership with IT and communications company Fujitsu, which provides secure, high-bandwidth IT infrastructure for GFG's software to sit on.
Their first customer is CIT Group, the Australian subsidiary of US commercial and consumer finance company, CIT Group, the Fortune 500 company best known as the finance behind Dell Computers.
CIT and GFG had worked together for some time building a production process for a new range of products for CIT's Australian company.
GFG Group managing director Anthony Howard said the new service allows CIT and any other companies that sign up to move with speed once they decide to enter a new market, be it geographic or financial.
"The moment people hear that you're coming in, they start going on the defensive, so speed to market and agility are absolutely paramount." "This service is balanced by integrity you can't get it wrong."
Called GFG:Utility, the service is based on a scaled-down version of GFG's current software package, GFG:UniCARD, a credit and debit card-issuing and management service, which has more than 50 customers in 40 countries.
Although in New Zealand it tends to stay under the radar, GFG has been accredited by the World Bank and is considered a leader in its field.
It is best known here for providing ASB Bank's card management system and for being behind Vodafone's new HotLink service, which allows Vodafone customers to top up their phone accounts from a nominated bank account using their mobile phone.
GFG Group chief executive Anthony Howard said about 70% of GFG's revenue comes from overseas. The group has offices in Auckland, Christchurch, Wellington, Melbourne, Australia, Manila, Philippines and Singapore.
Its products span four payment areas: card management systems, customer and merchant loyalty systems, mobile payment solutions and payment tools.
"We're dealing with mission critical systems, we're talking 7x24... It's no good wanting to get money and you can't access it because the system's down as a company you just won't survive."
GFG's strategy with its new service is to make the issuing of credit and debit cards accessible and affordable for a new range of customers, including finance companies, building societies and large retailers.
"We've sort of got that juxtaposition where we have experienced capable people but in essence what we're bringing to market with this service is something completely new."
