UK subsidiary TSB and its Spanish parent Banco Sabadell, have signed a ten-year deal with IBM to build and run its entire banking infrastructure on a private cloud.
Based on the $1 Billion group deal, IBM will now take full control of Sabadell IT operations which involves creating and hosting a private cloud that starts with running TSB’s core banking platforms, and handle the entire management of associated infrastructure.
“As the financial services industry continues its rapid digital transformation, banks need a reliable, resilient and secure technology environment to meet the needs of customers and address complex security and regulatory environments,” said Tosca Colangeli, UK and Ireland GST general manager at IBM.
Banco Sabadell acquired TSB in 2015 and suffered a great loss in April 2018 from its UK subsidiary due to series of IT failures, which occurred when it was upgrading systems and switching customers’ data from the former owner Lloyds Banking Group’s data center to Sabadell facility.
To consolidate its IT operations and optimize how it runs its IT infrastructure, the bank will now utilize Red Hat OpenShift technology and other cloud services provided by IBM, to deploy on-container architecture and a hand-full of new cloud-native applications.
“This agreement with IBM helps enable us to advance into the modernization and transformation of our technology infrastructure and in the simplification of our operational model,” says Miguel Montes, director of operations and people at Banco Sabadell.
“With this, we are not only continuing to increase our resilience, security and scalability capabilities, but we can also adopt key elements of the new technology paradigm like cloud, the intense use of data and artificial intelligence.”
TSB also announced the creation of a new technology center in Edinburgh, which could create 100 new jobs with openings for technical specialists, data engineers and analysts, and IT run specialists. The Technology center is expected to open in April 2020.