Fatca expertise among benefits cited for technology mergers

Fatca has been cited as one of the areas that can be better addressed through the merger of technology companies, more specifically in the form of the recent acquisiton of US based AnalytX by eFront, the specialist in solutions for alternative asset managers.

The deal has brought together two businesses that have been respectively focused on low to mid-tier clients and mit to higher-tier clients, as well as having different geographic presence in the US and Europe and Asia.

And it is that US presence of AnalytX, which eFront founder and CEO Oliver Dellenbach says will provide benefits in terms of reacting to regualtory demand such as Fatca.

“Analytx increases footprint of eFront in America and therefore our capability to serve this market. Of course it brings us some unique skillsets that efront will leverage, including Fatca experience,” Dellenback says.

The benefits will flow both ways, however, with European markets targeted by AnalytX solutions in turn.

“Analytx products will mostly target clients who want to have a more packaged, less configured, system and do not face the type of complexity that a more customized high-end solution like eFront can solve,” Dellenback continues.

Regulatory developments are cited by eFront as a significant driver of its growth in recent years. It claims a CAGR of 30% over the past five years, as it has opened offices in Sydney, Abu Dhabi and San Francisco.

Users of its IT solutions face more onerous regulatory requirements, reduced margins and more pressure on costs. All this is driving clients towards using more of the sorts of solutions that the company has been developing or acquiring.

Regulatory drivers

The opportunities seen by eFront in Fatca legislation are unlikely to go away anytime soon, according to the findings of a survey recently published by by NICE Systems, the US listed provider of a financial crime, risk and compliance software platform under the name NICE Actimize.

In a poll of representatives from some 100 financial firms during a webinar this spring it found that more than 55% rated their understanding of Fatca as ‘average’ or ‘poor’. Key challenges identified among these respondents include lack of clarity around the Fatca requirements, scarecity of Fatca expertise and operational impact and data issues.

Amir Orad, president and CEO of NICE Actimize, noted that financial firms affected by Fatca were still facing a struggle to meet the deadlines of the legislation.

 

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