Metro bank outsources everything

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The new bank that recently hit UK high streets has taken the pioneering step and outsourced everything, according to reports.

Niu Solutions is going to manage all IT operations and run them from a datacentre.

Terminals and security will be the only services run in-house. Here is a story about it.

Banks are big outsourcers and as they attempt to cut costs further following the financial system crash they are outsourcing even more. But they are often hampered by legacy systems that are as much as 40 years old.

Metro Bank has an advantage in that it is brand new.

Christian Ball, who works in the banking division at Capgemini, says this is an appropriate decision by a bank of Metro's size. Obviously it is still very small and costs per transaction would be very high.

It will be interesting to see if it takes more services in-house as it grows. I doubt it.

2 Comments

I agree. It makes more sense to outsource now that the bank's size is still rather small because then the risks would not be as drastic as they would if the bank were bigger in size. However, the advent of banking and other financial services outsourcing are growing at a steady pace, which makes outsourcing a valuable move.

good decision on the banks part. now they can even concentrate on how to rise up to the problems they are dealing without worrying the IT operation side of the company.

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This page contains a single entry by Karl Flinders published on October 7, 2010 4:24 PM.

Service provider's Linux system, which dethroned .Net, has its big test at the weekend was the previous entry in this blog.

Government spending review should be starting pistol for reform through IT is the next entry in this blog.

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