Wales financial services - technology growth

The sector currently generates 5% of Welsh GDP and is highlighted by the Welsh Assembly Government as a key sector for development.

Banking and building societies dominate the sector in Wales, employing 62% of the financial services workforce, whilst insurance and pension companies employ 21%, leaving 17% in operation and supervision.

HBOS, Lloyds TSB, HSBC, Zurich, GMAC, and Legal and General have set up and expanded operations in Wales. The sector now boasts a growing mix of activities from micro contact centres to European headquarters and provides a broad range of services. One of our technology companies is highlighted below:

peterevans: dominating its niche in securities

peterevans, set up in Cardiff in 1984, is a leading independent provider of secure ‘front to back office’ IT solutions for the financial services, securities and investment sector. It has a high profile in the financial heart of the City of London and a loyal customer base of blue chip companies featuring major international banks and stockbrokers. Millions of pounds worth of stocks and shares are processed every day on markets all around the world by software designed and maintained by peterevans. The company has provided software systems that handle around 20 per cent of the retail trades executed on the London Stock Exchange. All software development takes place in Cardiff and the firm is a real Welsh success story in the financial technology sector. Since it was established, peterevans has experienced steady growth and increased year-on-year profits.

“We are proud of the reputation we have built and of the track record of our software and services. Our client list includes some major players in the financial services sector. We are now building on this hard-won success and value the continued support we have received in Wales, which has helped us to achieve even greater growth.”

Michael Foley, Managing Director, peterevans.

For twenty two years peterevans has provided highly specialised software for the financial services sector. Currently, the company develops software that supports approximately 20% of retail trades executed on the London Stock Exchange. Its flagship TRACS system is one of the most advanced and complete back office systems available today. AXIM, its full function CREST settlement solution complements the TRACS system.

In October 2006, peterevans launched its new ‘xanite’ suite of products at SIBOS Sydney. ‘xanite’ is a modern and flexible platform that comprises a range of web-based modules covering wealth management; custody; corporate actions; clearing and settlement; private client and online stock broking with full operational support for front, middle and back office.

Flexibility is the key: peterevans’ software can integrate with technology developed by big players such as Microsoft and Oracle as well as opensource.

Global growth – Welsh stability

Despite facing competition from large US multinationals, the company has proved it can compete with giants, securing major accounts like Mellon, HBOS and squaregain. It has experienced steady growth and year-on-year profit increases since its was established – and recently won a record three awards at the Summerson Goodacre City of London’s 2006 Annual Securities Industry Awards, including wins in the ‘Superior Customer Service’ and ‘Best Marketing Material’ categories. Mike Foley also took the award for ‘Highest Rated CEO’.

The company is building on this success and is working closely with the Welsh Assembly Government in a number of areas.

“We are proud of the reputation we have built and of the track record of our software and services. We are now building on this hard-won success and value the continued support we have received in Wales, which has helped us to achieve even higher growth,” says Foley.

Developing in Cardiff

The company’s roots lie, in part, in Cardiff University. Retired Burrough’s Sales Manager, Peter Evans, set up the company, keen to spend his spare time working on an idea he had begun developing. He approached a local software house that developed the product utilising some of their sponsorship students from Cardiff University.

Managing director Michael Foley recalls: “I was conducting research at the University when Peter came to us with a proposal to build a prototype of his idea. Three months later we successfully developed the end product.”

Despite most of the demand for its early software coming from London-based banking institutions, the company’s development centre has remained in south east Wales.

“We have never regretted setting up our development centre in Cardiff. More than twenty years of stability and consistently low staff attrition levels have been good for business; indeed, the second person I ever employed in Cardiff still works for the company,” says Foley.

The company has established links with both Cardiff University and Glamorgan University, where students have assisted with data research for clients in the UK market.

Opening a sales office in London enabled peterevans to work closely with its City clients, but the majority of its staff are Cardiff based, helping it to provide clients with high quality, cost effective software.

Client communication is vital to peterevans. “The key thing for us is communication,” comments Foley. “A superb technical infrastructure including Broadband here in Wales is complemented by excellent rail and air links. It’s so easy to get from Cardiff to London, and indeed, the rest of Europe. This is essential for our business.”

Exciting results helped by public sector support

peterevans turned to the WDA (now merged with Welsh Assembly Government), to help it cement its future growth and development. The company worked closely with the WDA in a number of areas, including the developing of marketing and communications programmes, internal drives to raise the company profile and received a marketing grant to help implement new ideas resulting from these programmes.

“We’ve taken on board a lot of the advice and outputs of the programmes and incorporated them in our strategic business plans, says Foley.”

“Our Welsh Assembly Government account manager is helping us with future plans and has been introducing us to the right people at the right time,” says Foley. Most recently peterevans has been awarded an Assembly Investment Grant to assist with a recruitment campaign.

As part of its plans for expansion, peterevans refurbished and extended its offices in Cardiff to create a state-of-the-art design studio, to house the growing number of staff. It was officially opened in September 2006 by the Welsh Assembly Government Minister for Enterprise, Innovation and Networks, Andrew Davies.

peterevans – fast facts

• peterevans is leading independent provider of ’front to back office’ IT systems to the financial services sector.
• The company opened its headquarters and development centre in Wales in 1984. It subsequently opened a London sales office.
• Its clients include HBOS, Mellon, and squaregain.
• The company won three awards at the Summerson Goodacre’s City of London 2006 Annual Securities Industry Awards, including wins in the ‘Superior Customer Service’ and ‘Best Marketing Material’ categories. Mike Foley also took the award for ‘Highest Rated CEO’.
• www.peterevans.com

peterevans and Wales – fast facts

• Most recently peterevans has been awarded an Assembly Investment Grant to assist with recruitment.
• Wales’s ‘Fit to Win’ and ‘Winning Business’ programmes have helped peterevans to focus its strategic marketing and enhance its understanding of its target markets.

www.internationalbusinesswales.com