January 15, 2020 / 8:06 AM / 2 days ago

Spain's Banco Sabadell hires IBM for 1 billion euro IT upgrade

MADRID, Jan 15 (Reuters) - Spain’s Banco Sabadell has hired IBM for a 1 billion euro ($1.11 billion) overhaul of its IT systems over the next ten years, the companies said on Wednesday.

The bank seeks to makes its computer systems leaner and more efficient to handle more data and transactions from customers´ mobile phones, said Miguel Montes, Sabadell´s director of operations and people.

IBM is offering its hybrid cloud services developed by its recently acquired Red Hat unit, said Marta Martinez, IBM’s head for Spain and other southern European countries.

Traditional banks are investing huge amounts to upgrade their IT systems to keep up with the rising competition from new on-line banks, with no branches and no physical infrastructure, which are able to offer cheap, mobile-only banking services.

IBM will also help Sabadell’s U.K. bank TSB, which experienced severe IT glitches in the past years.

The bank will open a new technology centre in Edinburgh where it will handle all the British unit’s data. ($1 = 0.8986 euros) (Reporting by Inti Landauro, editing by Louise Heavens)

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