Microlink Solutions keen to partner fintech firms

KUALA LUMPUR: Banking solutions provider Microlink Solutions Bhd is keen to partner with financial technology (fintech) companies, to leverage on their financial services.
Fintech are generally startups that use technology to make financial services more efficient.
“We want to (have) control (on) our large system, but partnering small fintechs to run small initiatives is something that we must do,” Microlink’s group CEO Chia Yong Wei told reporters after its AGM here yesterday.
“This is because we like their modules. We like the way that they are (operating) in low cost subscription-based opex (operating expense) model. We will definitely partner with them,” he added.
Recently, Bank Negara Malaysia (BNM) governor Datuk Muhammad Ibrahim said rather than looking at the fintech revolution as unwelcoming, financial institutions should embrace it as an opportunity.
He said based on global consulting group McKinsey report, the number of fintech startups globally has exceeded 2,000, which is more than twice the number just under a year ago. 
Microlink, which has been providing financial services for conventional and Islamic banking for over 20 years, currently serves local clients including Bank Rakyat, RHB Bank and Agro Bank, as well as international clients in Brunei.
Its executive director Monteiro Gerard Clair said the group is also actively seeking for financial services deals in Indonesia and expects to close some jobs within a year. However, he said at the moment 90% of the group’s revenue contribution comes from its domestic jobs.
Gerard said the group’s orderbook currently stands close to RM100 million, which will be recognised in its current financial year ending March 31, 2017 (FY17).
“We have a healthy job in the pipeline, therefore we are cautiously optimistic on the group’s financial performance in FY17,” he said.
For the first quarter ended June 30, 2016 (Q1FY17), the group recorded a net profit of RM142,000, from a net loss of RM723,000 in the same period last year.
Meanwhile, Chia said the group is also looking to venture into new technologies under its enterprise solutions segment, such as Internet of Things, mobility and cloud solutions to help increase its recurring revenue stream.
“Last year, we have said that we want to try to move from the lumpy contracts and businesses to more steady and continuous income, and this is the start of it.”
”We made RM236 million in revenue last year. Out of that, we will spend about 5% to 10% on R&D (research and development) and new development of technologies,” Gerard added.