GFT: AI division to be expanded further

Last Updated: 10. Januar 2024By

German digitalization specialist GFT recently announced that they are expanding their expertise in the rapidly growing market of Artificial Intelligence (AI). In addition, GFT has reported an exciting partnership. But first, let me introduce you to the company and its business model.

GFT Technologies SE is a German IT service provider and software developer for the financial and insurance industry, as well as the industrial sector. Founded in 1987 and based in Stuttgart, the company offers consulting and development services for various technology topics and software products.

This includes topics such as cloud engineering (application of engineering disciplines to cloud computing), artificial intelligence (AI), or Industry 4.0 (connected factories).

GFT currently employs around 8,800 full-time employees, and the GFT stock has been listed on the Frankfurt Stock Exchange since 1999. Since December 2021, the stock has been listed on the SDAX, a small-cap index.

GFT wins AI award GFT’s AI expertise has been recognized for the second year in a row in Europe by the Google Cloud ecosystem. This recognition highlights the company’s growing expertise and innovative solutions in the field of Artificial Intelligence (AI).

GFT has extensive experience with AI and data analysis projects in the Google Cloud and continues to invest in tailored solutions and capabilities, making it a top choice for data analysis and machine learning (ML) services in Europe, as recognized by the award.

In 2022, GFT was also recognized for its leading role in data analysis and machine learning within the Google Cloud Partner ecosystem. This year, the company not only maintained this status but also further expanded its position, underscoring its commitment to AI innovations and excellence.

Exciting partnership launched Now onto the mentioned partnership: GFT is working with UK-based Starling Bank as an implementation partner for their Software-as-a-Service (SaaS) business „Engine by Starling.“ To explain, Software-as-a-Service refers to software solutions from the cloud.

Engine by Starling provides banks with access to a cloud-based, modular, and API-based (API = application programming interface) banking platform originally developed by Starling’s own technology team for the operation of Starling Bank.

Engine is now available to banks worldwide and has recently announced its first two customers. GFT has been chosen as Engine’s partner to provide design, integration, and implementation services for banks utilizing the Engine platform. In short, GFT will help banks modernize faster in the future.

Based on recent numbers and mid-term outlook, my analysis shows that GFT’s stock is currently undervalued. The price-earnings ratio (P/E) based on expected earnings for 2024 is only 14, which is very low for a high-growth technology company. This makes the GFT stock definitely worth a closer look.