Metro Bank has contracted Infosys to support its digital business transformation and use of automation, artificial intelligence (AI) and data technologies in a deal that will also help it meet cost-cutting targets.
According to reports, the bank is planning to cut 300 staff, including those working in its IT department. This follows an announcement of 1,000 job cuts in March, part of a plan to cut costs by £80m.
The Infosys relationship also aims improve customer services through embedding AI using Infosys’s generative AI (GenAI) platform, Topaz.
“By the end of this transformation, we will be a very different business, but the true essence of Metro Bank will remain the same – a high-quality service organisation putting customers centre-stage,” said Metro Bank CEO Daniel Frumkin.
A Metro Bank spokesperson told Computer Weekly: “We are outsourcing activities across business operations, IT and support functions. This may unfortunately result in redundancies, however we are also actively recruiting in our growth areas of regional commercial and corporate banking. We will be working with colleagues through consultation to try and avoid redundancies where possible. Store and call centre colleagues are not impacted.
Metro Bank became the first new UK bank in more than 100 years when it was launched in 2010. In contrast with some of the more recent challenger banks, which have gone branchless, Metro opted for a business model that included a branch network.
Frumkin said branches, or stores, as Metro refers to them, still play a major role. “Our vision for Metro Bank in 2025 and beyond places our store network firmly at its heart, as we continue with our plans to open new stores and bring the Metro Bank experience to the north of England,” he said.
Infosys is building its European banking services customer base through deals with traditional digital banks across Europe. Last year, Infosys took over Danske Bank’s IT operation in India as part of an IT outsourcing contract with the Nordic bank worth $454m over five years. The acquisition of the IT centre in Bangalore, which houses 1,400 IT professionals, enabled it to introduce GenAI into its services.
It also sealed a contract with Benelux-based online bank Keytrade Bank, which saw it replace its legacy core banking system with Infosys Finacle’s core banking software as a service, hosted in the public cloud with Microsoft Azure.
“We are excited to collaborate with Metro Bank in driving this transformation by leveraging advanced digital and AI capabilities, banking domain experience, as well as modernisation and automation focus through Infosys Topaz,” said Dennis Gada, global head of banking and financial services at Infosys.