GFG GROUP - NEWS ARCHIVES - 2004

Intellectual property transfer triggers major growth plans for GFG Group

1 August 2004 / Media Release

The GFG:UniCARD software behind card management systems used by more than 100 banks around the world is the focus of a major redevelopment and global marketing drive by payment solutions experts, GFG Group.

GFG Group chairman Ralph Green says agreement has been reached with New Zealand's ASB Bank and with Unisys Corporation regarding the transfer of GFG:UniCARD intellectual property rights to GFG Group. This, Green says, opens the way for GFG to invest both in new global sales and ongoing product development.

He says the international card payments market is growing strongly, stimulated by fast, accessible and more secure Internet connections. Cards are becoming increasingly 'virtual', and financial services are being offered by non-traditional payment businesses such as mobile phone operators and larger retail chains. Nearly two billion traditional credit and debit cards are estimated to be in use around the world today. This figure is forecast to double over the next decade as the technology to support card transactions becomes even more accessible and merchants and consumers become more aware of the advantages of card transactions.

"With GFG:UniCARD we have arguably the most successful banking software developed in New Zealand, an established customer base, and great opportunities for growth both within and outside that base," Green says.

GFG Group originally designed and built the GFG:UniCARD system as an in-house solution for ASB Bank back in 1989. Subsequently, Unisys adopted GFG:UniCARD for worldwide distribution, with GFG continuing to provide support and ongoing product development.. Sales have been made to 21 banks around the world. Many of these banks use GFG:UniCARD to support bureau operations servicing other banks. For example, ASB Bank uses GFG:UniCARD directly with its own customers, and for online banking customers of subsidiary BankDirect, as well as services to Kiwi Bank and the TSB Bank. In the same way, a GFG:UniCARD customer in Russia, SBRF, provides a bureau service to 60 other banks.

In total, GFG:UniCARD supports more than 4 million cards in 16 countries including USA, Russia, China, Australia, Costa Rica, Dominican Republic, Malaysia and South Africa. Green says GFG Group is currently raising capital to fund GFG:UniCARD product development, as well as boosting sales and marketing required to support an aggressive business plan for the group to double in size and revenues over the next 12 months. GFG is a private company, majority owned by its management and staff.

New appointments include Ant Howard as a minority shareholder and acting managing director. Howard is a former managing director of Wang New Zealand, and - through his strategic management and investment firm Howard & Co-works with companies in the technology sector to maximise their growth potential. Marie Tamplin-Woods, a former senior sales executive with IBM New Zealand and Jade Software, has been hired to build the new international sales team. Green says GFG's business plan, known as 'Project Shift', aims to leverage GFG's strong international reputation as consulting and product support experts specialising in the payment solutions market niche.

"Despite our relatively small size today, we have a big international footprint in our market niche, with consulting and support assignments and contracts carried out for customers in over 40 countries," Green says.

"These customers want us to be more active in the software application side of our business. In particular, our GFG:UniCARD customers want to see the competitive advantage enabled by the product preserved and augmented. In stepping up to that challenge, we also open up major new sales opportunities. Project Shift is about meeting that challenge, making the investment, and in the process embarking upon a much more dynamic growth path into the future," Green said.

 

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