The banking software provider hiked revenue and profits on the year. The Swiss company views itself as ideally positioned for the crisis.
Switzerland's largest provider of financial software lifted revenue by 6 percent to 609 million Swiss francs ($630 million) last year, it said in a statement on Thursday. As in 2018, this represents a slowing of Avaloq's double-digit revenue growth.
Among Avaloq's achievements last year were 12 new client wins and renewals including Brewin Dolphin, DBS, Bank Mandiri, Maybank Premier and Germany's Apotheker-und Aerztebank. The company said it also lifted its share of wallet with existing clients.
The online migration of 900 branches of Swiss cooperative bank Raiffeisen was another milestone, completed early in 2019. The gargantuan project was delayed several times and tied up considerable Avaloq resources. Raiffeisen bought out 49 percent of Arizon, the joint IT venture with Avaloq.
Corona Drives Digitization
The company's outlook alluded heavily to the coronavirus pandemic which is rushing banks into digital methods of communicating with clients: «Our success is based on a simple truth: the future of financial services is digital,» CEO Juerg Hunziker said.
«Only banks and wealth managers with highly agile digital platforms across front, middle and back offices will compete effectively and succeed – particularly as the likes of automation, robotics and even artificial intelligence have now become mainstream developments.»
He views Avaloq as ideally positioned for the crisis: «Our business model, with long-term contracts and recurring revenue streams, provides us with precisely the stability a financial institution looks for in a partner these days.»
