Fundtech, the New Jersey-based provider of payments, cash management and settlement software, says Korea Financial Telecommunications and Clearings Institute (KFTC) has bought its PAYPlus application as a CLS Bank solution.
Korean banks will use the utility for foreign exchange (FX) transactions when the Korean Won, its national currency, goes live with CLS in November 2004.
KFTC, a financial industry organization whose members include Korean banks and the Central Bank of Korea is responsible for payments clearing and funds transfer in Korea. Banks will link directly to the utility service hosted by KFTC to process FX transactions through PAYplus for CLS.
PAYplus for CLS is a web-enabled platform that aims to integrate internal and third party services.
Fundtech says it worked closely with its regional distribution partner Comas throughout the competitive bidding process.
Providing access to CLS through a utility enables banks to share the costs of CLS connectivity and operations. Korea Exchange Bank (KEB) and Kookmin Bank have signed as CLS settlement members and will provide third party CLS services for the remaining 17 Korean banks.
“Its essential that the Korean Won participates with CLS, to help us strengthen our position in domestic and international markets,” says Minjae Kim, CLS project manager for KFTC. “By Fundtech providing us with access to CLS, Korea can reach a new level in terms of international financial recognition. Fundtech was chosen for its history of successful projects with PAYPlus for CLS, especially for third-party CLS connectivity.”
According to Michael Sgroe, President and Chief Operating Officer of Fundtech, the KFTC sale is “a strategic win for Fundtech as we expand our CLS business globally and increase our presence in Asia.”