Local financial services software producer, Classic Solutions is set to expand operations into the US market after a hefty injection of venture capital.
Local financial services software producer, Classic Solutions is set to expand operations into the US market after a hefty injection of venture capital.
The group, which produces risk management software for financial services organisations will make the step after signing a joint development agreement with Ernst and Young LLP.
The agreement will result in Ernst & Young in the US adopting Classic’s MoSes financial modelling software as the worldwide tool for actuarial consulting. At the same time Ernst & Young will work with Classic to adapt the product to the wider US market.
The announcement of the joint venture comes after the group attracted $4 million in funding from local and overseas partners and an in principle grant of $2 million from the Federal Government.
So far the company has already built a presence in the UK market over the last two years with clients including Axa-Sun Life, Prudential, Swiss Re and KPMG. Local clients include Westpac and the Commonwealth Bank.
Classic chief executive officer Mark Schneider says the software is in use in over 20 countries worldwide which has come as a result of increasing levels of regulation within financial services globally.
At the same time the push to greater transparency has forced financial services groups to perform detailed projections while increasing competition has placed pressure on margins increasing the need for risk management modelling.
“The adoption of modelling software allows organisations to price products more precisely, measure the impact of shrinking margins and model the effect of these changes on the group,” Schneider says.
Currently Classic’s main customers are life and general insurers but the group plans to target other markets including pensions, banking, reinsurance, unit trusts companies and accounting and actuarial firms.
