TSB has launched its first service that harnesses the proprietary IT system of its parent bank, with more new services planned.
The bank has launched a mobile app for Android and iOS devices, which has been developed using the Proteo IT platform inherited through its owner Spanish bank owner Sabadell.
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When it acquired TSB for £1.7bn, Sabadell said it planned to migrate TSB to its own proprietary Proteo in-house IT platform. It said this will cut costs by £160m annually, as well as offer an opportunity to build services.
TSB uses a version of Proteo known as Proteo4UK. The mobile app uses the platform and TSB said more is to come. Prior to Proteo, TSB used the IT systems of previous owner Lloyds Banking Group.
When it separated from Lloyds Banking Group (LBG), TSB launched alone with five million customers, eight million accounts, 8,000 staff and 632 branches. But because TSB’s systems were run on LBG’s IT platform, the Office of Fair Trading (OFT) had concerns over TSB’s ability to compete.
“The Proteo IT platform is the start of a whole new era for TSB and will allow us to become more agile. The new app is just the starting point; we will be bringing updates every month from now on and we look forward to further improving the service we provide to customers,” said TSB CIO Carlos Abarca.
As well as offering fingerprint authentication and a wide range of services, the mobile app integrates with third-party apps and services from financial technology (fintech) startups.
“Our mobile app is the first service built by our Proteo IT platform. We’ve worked on improving the features, such as the introduction of fingerprint login, to make the app easier and quicker to use,” said Abarca.
Sabadell’s strategy echoes that of Santander, which is another Spanish banking giant. Santander’s growth strategy saw it acquire UK financial services firms and move them onto its in-house core banking platform, known as Parthenon, which uses in-house middleware called Banksphere.
Santander bought Abbey in 2004 and Alliance & Leicester and Bradford & Bingley in 2008. Santander expected to make £300m cost savings after integrating Abbey with Partenon.
It planned to make efficiency savings of between £30m and £50m by integrating Alliance & Leicester with the Partenon core banking system. The bank’s strategy to migrate acquired customers to its Partenon core banking platform gains huge advantages by standardising its operations and creating a single view of customers.