April 16, 2021

Santander 'tab' to IBM for 620 million to accelerate its technological change | Economy

Santander 'tab' to IBM for 620 million to accelerate its technological change | Economy

The Santander and the IBM technology announced on Wednesday that they have signed a contract in which the bank will pay 700 million dollars (620 million euros) to the US firm in a five-year agreement. The objective is for the technology "to help Santander accelerate and deepen its business transformation". According to the joint statement, despite the large figure, this agreement means "generating savings" for the bank in its annual spending on technology. The key is that until now the bank only signed technological contracts year after year. Closing the long-term alliance, during a five-year period, has reported a reduction in its cost in return.

Banks are increasingly competing for the technological terrain. The goal is for customers to have the office on their mobile, and not in every corner of the cities. Competition also comes from within the Network: at fintech, Companies born on the Internet that offer financial services, adds the interest of technological giants like Google or Amazon to also operate as banks.

Ana Botín, president of Santander, already announced at the shareholders' meeting in 2017 that her bank would bet to become a serious digital competitor. He assured that they would invest 1,900 million euros per year in this field. In January, in the presentation of results for 2018, it raised the figure to 2,000 million. And the signed contract now does not compute in that figure: that is, it is an added expense, destined to technological changes, not digital transformation.

In its presentation of results for 2018, the entity also assured that it now has close to 32 million digital customers, after raising the figure by 26% in the year. The main niche of users of its virtual office is in Brazil, with more than 11 million, while in Spain it has about 4.7 million.

Previous joint projects

After signing the new agreement with IBM, the technology company said it will help the bank of Cantabrian origin "to enrich its services and applications" with artificial intelligence technologies, blockchain Y big data, in addition to reinforcing its computer security.

Currently, Santander is already using the artificial intelligence platform IBM Watson, both externally (to adapt services to what customers ask), and internal (in terms of access to training and productivity for its employees). They also indicated that IBM is already collaborating with the bank on "methodologies and processes" of the Cloud Competence Center [tecnología remota en la nube], which Santander has created and where it is using a set of technologies such as IBM DevOps and IBM API Connect, among others.

"This contract will allow us to have a global partner with the best technology to accelerate the transformation in information technologies. We believe that this agreement with IBM represents a great support to our strategy of constant progress, while protecting our technological investment, "said David Chaos, Santander's global technology director.

The bank raises its offer to buy its headquarters


Banco Santander continues with his battle to buy back his Financial City and it raises its offer until it matches that of its rival in the bid to acquire it, according to Europa Press. The site that wants to recover the bank, in Boadilla del Monte, is in the hands of Marme, the fund to which it was sold in 2008 after agreeing to stay for 40 years of rent. Marme is in bankruptcy since 2014, and now the bankruptcy administrator is liquidating the company. In the bid he organized, he decided to consider the winner of the Simon and David Reuben brothers' fund, because his offer was 51.5 million higher than that of Santander. The bank filed an appeal against the offer and is pending resolution. However, he has decided to exercise his right of first refusal and launch a counteroffer.

If the circumstance arises that the appeal for reconsideration proceeds, this counteroffer would not be necessary and the proposal of the Reuben would be invalidated, although Santander prefers to keep its back by exercising its right of first refusal if the procedure of optional nature does not prosper. .


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