Software development company RS2 has applied to the Malta Financial Services Authority for its shares to be listed on the official list of the Malta Stock Exchange. RS2 and its majority shareholder plan to offer shares to the public some time between May and June of this year. RS2 is planning to use the funds raised from the market to boost development and marketing of its card management products.
The company's origins date back to 1988 when two international bankers, German Reinhold Schaffter and American Richard Stacks - whose initials inspired the name - decided to develop card management systems for smaller banks, which only had thousands of cards to handle.
"Until then, the products were aimed at larger banks that had mainframes," chief executive officer Mario Schembri said.
"They wanted to come up with something that could be used on a PC."
The pair contacted Eurocard, now part of Mastercard, which immediately showed interest. Lady Luck stepped in: Eurocard had just been contacted by Mid-Med Bank in Malta, seeking just such a system for its own card operation. It became the company's first client in 1989. This relationship continues to the present day as RS2's card management systems have been retained following HSBC's takeover of Mid-Med's operations.
That year also saw the fall of the Iron Curtain, with numerous smaller banks in the former Soviet states suddenly opening their horizons and seeking similar systems. Mr Schaffter was sentimental about his first order and decided to set up RS2 International in Malta. He was thrilled to be able to find enough skilled developers here to carry on with his work and the number of clients gradually grew, spreading to the Middle East and across Europe, particularly in Scandinavia.
Mr Schembri left a local bank to join RS2 in 1999 to head the company and a team of project managers and developers that worked hard to create a high volume engine (HVE). By 2006, BankWORKS was HVE-ready, deployed and operational
"It was a huge leap forward. We were now able to offer a product that could handle three million transactions an hour, based on all that we had learned over almost two decades," Mr Schembri said.
Once the product was ready, the company moved to expand its distribution through different channels, selling directly as well as through service providers. This means they cannot say with any certainty how many card users are serviced through BankWORKS.
"But it is clearly millions, probably tens of millions," Mr Schembri smiled.
The company has always been profitable - although some years were better than others - but the time has come to take the next step which will enable it to continue with its organic growth and to consider growth by acquisition. Other expansions are already on the cards: RS2 plans to open offices in Jordan, Scandinavia and Germany, with one in the US also likely within the next two to three years.
"We already have a critical mass of clients in the Middle East and Scandinavia, so an office will ensure that we can offer appropriate levels of service and support. We have moved from supply to much more comprehensive licences that include on-site support and maintenance. These are very important as they generate regular, long-term revenue," Mr Schembri said.
"We have two clients in the US and another licence should be signed in a few weeks' time for a client handling some 400 million transactions a year, so our activity is also growing on that continent."
What is next for RS2? With over 30 banks and service providers (servicing approx. 300 clients worldwide) in 23 countries, it has seen growing demand for training. The company plans to open a training academy within the next 18 months, which will bring a few hundred people to Malta, including some from partner companies who would use its facilities.
The company currently employs 50 people in Malta and hopes to increase this to around 80, with the total workforce expected to reach 100 within the coming two years.
Mr Schembri is understandably excited about the opportunities.
"The card market is constantly developing. The introduction of the Single Euro Payments Area has mandated a number of changes which will boost cross-border payments - which will undoubtedly boost card use. We are also helping clients to move to new chip technology and to comply with other payment directives. We are always looking at the next technology, such as smart cards, biometrics and telephone chips."
The company's origins date back to 1988 when two international bankers, German Reinhold Schaffter and American Richard Stacks - whose initials inspired the name - decided to develop card management systems for smaller banks, which only had thousands of cards to handle.
"Until then, the products were aimed at larger banks that had mainframes," chief executive officer Mario Schembri said.
"They wanted to come up with something that could be used on a PC."
The pair contacted Eurocard, now part of Mastercard, which immediately showed interest. Lady Luck stepped in: Eurocard had just been contacted by Mid-Med Bank in Malta, seeking just such a system for its own card operation. It became the company's first client in 1989. This relationship continues to the present day as RS2's card management systems have been retained following HSBC's takeover of Mid-Med's operations.
That year also saw the fall of the Iron Curtain, with numerous smaller banks in the former Soviet states suddenly opening their horizons and seeking similar systems. Mr Schaffter was sentimental about his first order and decided to set up RS2 International in Malta. He was thrilled to be able to find enough skilled developers here to carry on with his work and the number of clients gradually grew, spreading to the Middle East and across Europe, particularly in Scandinavia.
Mr Schembri left a local bank to join RS2 in 1999 to head the company and a team of project managers and developers that worked hard to create a high volume engine (HVE). By 2006, BankWORKS was HVE-ready, deployed and operational
"It was a huge leap forward. We were now able to offer a product that could handle three million transactions an hour, based on all that we had learned over almost two decades," Mr Schembri said.
Once the product was ready, the company moved to expand its distribution through different channels, selling directly as well as through service providers. This means they cannot say with any certainty how many card users are serviced through BankWORKS.
"But it is clearly millions, probably tens of millions," Mr Schembri smiled.
The company has always been profitable - although some years were better than others - but the time has come to take the next step which will enable it to continue with its organic growth and to consider growth by acquisition. Other expansions are already on the cards: RS2 plans to open offices in Jordan, Scandinavia and Germany, with one in the US also likely within the next two to three years.
"We already have a critical mass of clients in the Middle East and Scandinavia, so an office will ensure that we can offer appropriate levels of service and support. We have moved from supply to much more comprehensive licences that include on-site support and maintenance. These are very important as they generate regular, long-term revenue," Mr Schembri said.
"We have two clients in the US and another licence should be signed in a few weeks' time for a client handling some 400 million transactions a year, so our activity is also growing on that continent."
What is next for RS2? With over 30 banks and service providers (servicing approx. 300 clients worldwide) in 23 countries, it has seen growing demand for training. The company plans to open a training academy within the next 18 months, which will bring a few hundred people to Malta, including some from partner companies who would use its facilities.
The company currently employs 50 people in Malta and hopes to increase this to around 80, with the total workforce expected to reach 100 within the coming two years.
Mr Schembri is understandably excited about the opportunities.
"The card market is constantly developing. The introduction of the Single Euro Payments Area has mandated a number of changes which will boost cross-border payments - which will undoubtedly boost card use. We are also helping clients to move to new chip technology and to comply with other payment directives. We are always looking at the next technology, such as smart cards, biometrics and telephone chips."