Datacom has extended its alliance with fintech solutions provider, Finzsoft Solutions, through the signing of a $20 million-plus deal spanning five years.
Designed to promote new synergies between both parties, Finzsoft’s professional services division will be managed by the technology provider from 17 December 2017.
Specifically, the alliance will see Finzsoft’s professional services team hired by Datacom, although customer contracts will remain with Finzsoft, with both companies working together to ensure a well-managed transition.
According to Finzsoft managing director Andrew Holliday, the move will allow the company to focus on its core business of product development.
“The separation of Finzsoft’s core product development function from the professional services function will enable us to focus on strategic product development and delivering these to market,” Holliday added.
“It also allows us to leverage Datacom’s market leading professional services arm to better align with the evolving needs of our customers.
“We believe that a deep product focus is the best way for Finzsoft to continue to meet the growing demands of modern financial institutions around the globe.”
Publicly-listed on the NZX, the Finzsoft group includes Finzsoft Solutions across both New Zealand and Australia markets, including Sush Global Solutions as a wholly-owned subsidiary of Finzsoft Solutions.
With a long heritage in providing technology solutions for the banking sector across New Zealand, Datacom Auckland director Vernon Kay said the strategic alliance represents a “natural extension” of the provider’s current relationship with Finzsoft.
“Our two firms share both a proud Kiwi heritage but also a customer-centric approach to innovation that keeps us relevant and agile,” Kay added.
“The strategic alliance is a clear reflection of Datacom’s proposition of using technology and services to free our customers to focus on their core business and strategic activities.”
Across New Zealand, and the world, the fintech sector continues to grow exponentially, with this new deal designed to "significantly enhance" Datacom’s capability and capacity across the market.
“Financial services is a key growth area for us,” Kay added.
A recent report from Frost & Sullivan forecasted the Australian Fintech Sector will grow at a CAGR of 76.36% and reach A$4.2 billion by 2020, with sharp growth expected in 2017.