Spanish banking giant Banco Santander is planning to integrate Alliance & Leicester with its core banking system after Santander and the UK building society agreed a £1.3bn take-over.
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Santander expects to make efficiency savings of between £30m and £50m by integrating Allance & Leicester with Partenon core banking system.
The move follows Santander's take over of Abbey in 2004. Santander's expects to make £300m cost savings after integrating Abbey with Partenon.
"Santander believes that it is possible to realise substantial benefits by transferring Alliance & Leicester's operations to Partenon, its proprietary IT platform, and integrating its back office functions with those of Abbey," it said in a statement.
"The implementation of Partenon at Abbey is now reaching its final stages and Santander is now ready to integrate Alliance & Leicester."
Alliance & Leicester had been in the process of moving to Accenture's Alnova banking platform,. Alnova was designed to replace Alliance and Leicester's systems used for current and savings account customers and loans and commercial banking business.
Santander's strategy to acquire companies and integrate them into the Partenon core banking platform. It aims to reduce costs and improve efficiency through the creation of a single view of customers.
A spokesman at Alliance & Leicester said it was too early to comment on IT plans.
According to Ralph Silva, analyst at Towergroup, Santander there is a question about how Santander will move Alliance and Leicester over to Partenon.
"The question is will it put Alliance & Leicester as an extension of the Abbey version of Partenon or create a new version," he said. "If it becomes an extension of the Abbey system the only system that will have to be changed is the mortgage system because it will not have the capacity to take in all the Alliance and Leicester mortgages."
Santander is in the process of completing the integration of UK bank Abbey, which it acquired in 2004, to its global banking platform Partenon.