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  • FIRST POST
    • 18cc
    • By 18cc 15th Jan 20, 7:56 PM
    • 2,080Posts
    • 1,535Thanks
    18cc
    TSB outsourcing entire banking IT to IBM
    • #1
    • 15th Jan 20, 7:56 PM
    TSB outsourcing entire banking IT to IBM 15th Jan 20 at 7:56 PM
    at a cost of 1 billion....

    "TSB parent, Spain's Banco Sabadell, has signed a €1bn group deal with IBM to build and run its entire banking infrastructure via a private cloud among a raft of other services – the outage-hit UK arm has told The Register.

    The decade-long agreement will provide a much needed shot in the arm for Big Blue's hard pressed Global Technology Services (GST), and is designed to shore up TSB online banking services.

    The head of comms at TSB, Supreet Thomas told us the contract means "IBM will be the main provider around technology services and our cloud strategy", and confirmed the nine-figure valuation penned by Sabadell.

    She was unable to confirm the cost element for TSB, but estimated it at millions of pounds."
Page 1
    • Milarky
    • By Milarky 15th Jan 20, 8:26 PM
    • 6,301 Posts
    • 2,210 Thanks
    Milarky
    • #2
    • 15th Jan 20, 8:26 PM
    • #2
    • 15th Jan 20, 8:26 PM
    I guess the '1bn' is the lifetime value of the con trick tract
    .....under construction....
    • born again
    • By born again 15th Jan 20, 9:30 PM
    • 1,444 Posts
    • 796 Thanks
    born again
    • #3
    • 15th Jan 20, 9:30 PM
    • #3
    • 15th Jan 20, 9:30 PM
    Will take them most of the 10 years to get it up and running. Unless they already have done it for another bank.
    • colsten
    • By colsten 15th Jan 20, 10:24 PM
    • 11,713 Posts
    • 11,058 Thanks
    colsten
    • #4
    • 15th Jan 20, 10:24 PM
    • #4
    • 15th Jan 20, 10:24 PM
    Unless they already have done it for another bank.
    Originally posted by born again
    https://www.finextra.com/newsarticle/34713/ibm-launches-financial-services-ready-public-cloud-with-bank-of-america

    Still a formidable undertaking.
    • GTR King
    • By GTR King 15th Jan 20, 10:38 PM
    • 918 Posts
    • 160 Thanks
    GTR King
    • #5
    • 15th Jan 20, 10:38 PM
    • #5
    • 15th Jan 20, 10:38 PM
    Dose that mean new Online Banking Design New PDF Statements etc?? hopefully won't be as bad as last time they switched online banking or I probably will leave TSB For good
    • Uxb1
    • By Uxb1 16th Jan 20, 8:15 PM
    • 364 Posts
    • 552 Thanks
    Uxb1
    • #6
    • 16th Jan 20, 8:15 PM
    • #6
    • 16th Jan 20, 8:15 PM
    Well it was IBM who were brought in during the TSB banking meltdown chaos in 2018 to emergency-fix the mess created by Sabadell for the TSB "upgrade" and make it sort-of work properly.

    So IBM already have an idea of how bad it was
    • Thrugelmir
    • By Thrugelmir 16th Jan 20, 10:44 PM
    • 66,353 Posts
    • 58,410 Thanks
    Thrugelmir
    • #7
    • 16th Jan 20, 10:44 PM
    • #7
    • 16th Jan 20, 10:44 PM
    IBM already provide banking solutions to over 40 out of the world's top 50 banks. You could almost say off the shelf.
    “Risk comes from not knowing what you are doing. – Warren Buffett”
    • born again
    • By born again 17th Jan 20, 5:53 PM
    • 1,444 Posts
    • 796 Thanks
    born again
    • #8
    • 17th Jan 20, 5:53 PM
    • #8
    • 17th Jan 20, 5:53 PM
    IBM already provide banking solutions to over 40 out of the world's top 50 banks. You could almost say off the shelf.
    Originally posted by Thrugelmir
    They might, but each banks works in it's own way with it's own systems.

    So you just pull a system off the shelf and expect it to work with a new banks data without a hell of a lot of testing...

    TSB have already been here once. So will be even more careful now.
    • veryintrigued
    • By veryintrigued 17th Jan 20, 6:46 PM
    • 2,860 Posts
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    veryintrigued
    • #9
    • 17th Jan 20, 6:46 PM
    • #9
    • 17th Jan 20, 6:46 PM
    Interesting news.

    The move to outsource IT is one thing. Moving onto the IBM cloud could make them very dependent on them if the required thinking, to get them away from this, hasn't been done.
    • Thrugelmir
    • By Thrugelmir 17th Jan 20, 10:57 PM
    • 66,353 Posts
    • 58,410 Thanks
    Thrugelmir
    They might, but each banks works in it's own way with it's own systems.
    Originally posted by born again
    Banking is primarily in nature universal. The core engine of the system will be the same.
    “Risk comes from not knowing what you are doing. – Warren Buffett”
    • realaledrinker
    • By realaledrinker 18th Jan 20, 1:24 AM
    • 1,625 Posts
    • 567 Thanks
    realaledrinker
    This relates to the infrastructure powering the banking system. If the latter stays the same - and I wager it will - then you'll get a more robust system still prone to many of the same functionality issues.

    .. spoken from experience

    .. Co-**
    Ethical moneysaver
    • born again
    • By born again 18th Jan 20, 3:46 PM
    • 1,444 Posts
    • 796 Thanks
    born again
    Banking is primarily in nature universal. The core engine of the system will be the same.
    Originally posted by Thrugelmir

    While the underlying banking/card systems for money movement are. What the bank overlay with for their own use are not.
    Different banks using different systems for customer notes. Credit card systems are different. How things like chargebacks & fraud are dealt with on systems are different.
    We have had a external Co (IBM) come in and look at ours. They were shocked at the systems and totally could not understand how to work a new system in to work with our background systems.
    All they wanted to do was dump our existing systems and set up their system.
    Management soon put a hold as the cost/time of retraining everybody to use new systems and the actual moving of data was far to much trouble.
    • No_6
    • By No_6 18th Jan 20, 10:12 PM
    • 829 Posts
    • 162 Thanks
    No_6
    Do not leave yet !
    maybe another big fail or f..up
    and another £150 for each account.

    I love TSB

    6
    • born again
    • By born again 19th Jan 20, 5:55 PM
    • 1,444 Posts
    • 796 Thanks
    born again
    Do not leave yet !
    maybe another big fail or f..up
    and another £150 for each account.

    I love TSB

    6
    Originally posted by No_6
    Thats why I have taken a account with them, as well as the £50 cashback & interest.
    • pafpcg
    • By pafpcg 20th Jan 20, 1:37 PM
    • 477 Posts
    • 428 Thanks
    pafpcg
    I guess the '1bn' is the lifetime value of the con trick tract
    Originally posted by Milarky
    But did you see how much TSB, after their de-merger from Lloyds Banking Group, were paying LBG to continue to use the LBG IT infrastructure? That's the explanation for why TSB was in such a desperate rush to set-up their own systems.
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