Fundtech Ltd. (FNDT), today announced that the Korea Financial Telecommunications and Clearings Institute (KFTC) has selected its PAYplus clearing for settlement (CLS) solution as the core application for the Korean CLS utility system. Korean banks will use the utility for foreign exchange 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 foreign exchange transactions through PAYplus for CLS.
PAYplus for CLS is a web-enabled platform that integrates internal and third party services. It is the only solution to integrate trade and payments processing combined with real-time risk and liquidity management. Fundtech 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.
MinJae Kim, CLS project manager from KFTC says, "It's essential that the Korean Won participates with CLS, to help us strengthen our position in domestic and international markets. 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, "This is a strategic win for Fundtech as we expand our CLS business globally and increase our presence in Asia."
KFTC was established in 1986 by integrating the Korea Clearing & Reporting Credit Reporting Center and the Korea Banking Giro Center. Since its foundation in 1986, KFTC has continued to play an important role in the efficient operations of payments systems such as check clearing and bank giro systems and in the development of an innovative electronic funds transfer mechanisms in Korea.
Published by Globes [online] - www.globes.co.il - on Tuesday, June 29, 2004