Feeds

Co-op Bank to splash £500m on system revamp

So is this where the next banking-IT disaster will hit - or where it won't?

Choosing a cloud hosting partner with confidence

The Co-operative Bank has put tech suppliers operating in Blighty's financial services sector on red alert after confirming plans to spend £500m on overhauling its creaking IT infrastructure after years of "under-investment".

A wider rescue plan is being initiated by the bank after it discovered a £1.5bn black hole in the balance sheet created by defaulted loans and the 2009 merger with Britannia Building Society.

The backbone of the turnaround efforts, thrashed out this weekend, include shuttering around 15 per cent of UK branches and axing part of the workforce, but also extend to dragging its aged IT into the 21st century.

"As a result of historical underinvestment (among other factors), a number of the bank's IT systems now, or will soon, require their hardware and operating systems to be updated and improved," the bank said in its recapitalisation plan.

A review of the pressing needs has been completed and an IT development roadmap has been agreed. This has been split into four phases: remediation, digital catch-up, simplification and strategic optimisation.

The "primary focus" for next year and 2015 is "remediation of existing system issues" to meet commitment to regulators and create an IT rig that improves the web-based and mobile banking services.

The execution of the bank's turnaround strategy will take three years, the Co-Op stated.

"The bank has currently budgeted in the region of £500m in connection with the re-engineering of the bank's IT platform to support the Core Business strategy, its cost saving programme, and the reorientation of the bank's distribution channels."

"Within this amount, total investment spend on transformation, including IT remediation, digital catch up and other IT initiatives in the next three years of approximately £400m to £450m is currently budgeted, of which approximately 40 to 45 per cent is currently expected to be capitalised," the Co-Op added. ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.