The Royal Bank of Scotland (RBS) and Lloyds TSB have
announced plans tosell off business unitsand more than 1,000 retail
branches, posing technical challenges as they disentangle their IT
systems.
But the fact that the businesses being sold are not fully
integrated with the banks will make their transfer to acquirers
simpler, according to industry commentators.
Lloyds TSB will sell about 600 branches, as well as its
Cheltenham & Gloucestershire, Lloyds TSB Scotland and
Intelligent Finance businesses.
RBS will sell all of its RBS-branded branches in England and
Wales and NatWest branches in Scotland, as well as its insurance
businesses.
Robert Morgan, director at outsourcing consultancy Hamilton
Bailey, said both banks had acquired insurance and building society
businesses but had not fully integrated them. "These companies have
been acquired along the way and systems are unattached. Because of
this it will be easier to split off the companies."
Although the banks have integrated reporting systems, this
software will be easy to decommission, said Morgan.
But he added that the banks could face problems if they have let
too many IT staff go from companies they have acquired. "They may
have to reemploy the IT skills if they have slimmed down too
much."