KPMG uses Markets IT to drive fintech

KPMG Australia’s acquisition of Markets IT is expected to boost the firm’s depth and scale in the burgeoning capital markets technology sector. The terms of the deal were not disclosed.

Markets IT has developed since 2011 into a leading Australian technology consultancy specialising in financial services. The Melbourne-based firm implements integrated trading, risk management, regulatory reform, trader surveillance, processing and post-trade solutions for both buy and sell-side organisations including banks, clearing brokers, central banks, investment managers and hedge funds. 

In 2013 Markets IT became Australia’s first system integration partner for Murex, a global provider of cross-asset trading, risk management and processing technology.

“Financial services organisations face an unprecedented landscape of rapid change – continual regulatory changes, heightened competition, innovation threats and opportunities, and technology changes,” KPMG Australia CEO Gary Wingrove said.

“There has never been a greater need in the market for integrated, business-centric technology services for these clients. And effective implementation will require deep subject matter expertise in both business and technology.

“Markets IT is a very timely and strategic acquisition that also supports our global capital markets strategy, and our growing Murex-related services here in Australia as well as in Asia Pacific, Europe and South Africa,” he said.

Mr Wingrove said capital markets had been grappling with regulation challenges for the past five years, but the intensity had increased as implementation deadlines of associated rules, controls and technology arrived. 

“Significant cost cutting pressures provide further complexity,” he said.

“Globally, system consolidation and replacement of legacy technology remains the biggest driver of anticipated technology spending increases.”

KPMG research showed total capital markets technology spending globally is forecast to exceed US$100 billion by 2018, with forecast spend allocated to risk management-related technology rising to over 18 percent of this by 2018.

Founder of Markets IT, Tim Robinson, has joined KPMG Australia as a partner. Co-founder Craig Snell and fellow director John Rusjan also join KPMG as directors together with their team of specialists in Melbourne and Sydney.

Merging with KPMG’s existing Capital Markets Technology team, this creates a combined team of around 40 experts nationally, supported by the group’s existing regional and global capability.

Markets IT was founded in 2011 and has grown rapidly off the back of successful project delivery and strong working relationships with major financial institutions.

“Our growth was driven initially as a provider of Murex services, but increasingly we’re diversifying through delivery of regulatory related technology services including trader surveillance,” Robinson said.

“Market IT’s offering is directly complementary to KPMG’s business, regulatory and technology enablement services and strategic areas of focus. I believe the combination of business platform enablement services, together with KPMG’s brand and broader risk and transformation expertise positions us strongly to become the local market leader,” he said.

“We anticipate further rapid growth in the Australian market going forward.”

KPMG Technology leader, Richard Marrison, who oversaw the deal, said, “Technology enablement is a priority investment area for KPMG. This is the third acquisition we’ve made in this space recently in Australia.  Technological advances will continue to reshape operating models and service delivery in financial services over the coming years.

“The most successful organisations will utilise technology to ease the regulatory burden, and support growth and innovation.”

The Market IT deal is the 11th acquisition by KPMG Australia in the past two years including social media risk consultancy, SR7; the Melbourne team of Pacific Strategy Partners; an accounting practice in Karratha, WA; mining services consultancy Momentum Partners; SGA Property Consultancy; First Point Global cyber security business; accounting and advisory business Hayes Knight (WA); human rights and social impact consultancy, Banarra; Microsoft implementation partner, Hands-on Systems; and The Performance Clinic.

www.kpmg.com.au

 

About KPMG

KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 155 countries and have 174,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

 

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