The bank, formed by the merger last year between Bank of Scotland and Halifax, hailed the deal as a first for the financial services sector.
The project will create a single customer service platform to support multiple products and brands under a single customer service system, with the aim of reducing customer servicing costs by 25%.
Analysts said that other insurers would follow the example of HBOS in a bid to reduce processing costs for a myriad of complex products.
"A lot of insurance companies are focusing on costs at the moment with 1% [fixed customer] charges and the decline in the equity market," said Daniel Mayo, lead analyst in the financial services group of analyst firm Datamonitor.
HBOS will create a common system for life and pension products by extending the technology platform of the recently acquired Equitable Life.
John Edwards, chief executive officer for HBOS Life and Pensions, said: "To succeed in today's financial services arena you must give your customers the highest service quality while simultaneously driving down costs. That is precisely what this project hopes to achieve."