IBM closes billion-dollar deal with ABN Amro for further digitization of banking

ABN Amro has signed a multi-billion dollar contract with IBM. Over the next ten years, IBM will provide hardware and software to enable ‘banking in the cloud’ for ABN Amro. ABN Amro wants to save costs with the new platform.

The contract that the two parties signed would be worth “several billions of dollars” according to IBM, but the IT company does not want to give a precise indication. Under the agreement, IBM will build the cloud infrastructure for ABN Amro and standardize and simplify existing IT processes. To build this infrastructure, IBM claims to provide mainframes, servers, storage systems, application support and client systems, as well as a helpdesk for support.

ABN Amro announced two weeks ago that it will cut approximately 650 to 1000 jobs until 2018, mainly by closing bank branches. The bank says that its customers increasingly arrange their banking affairs via the Internet and that the number of visitors to the branches continues to decline. By entering into an agreement with IBM, the bank aims to further reduce its costs and improve its services.

In addition to ABN Amro, ING also recently announced a round of layoffs that would be the result of the increasing digitization of banking. 1,700 jobs will be lost at ING, including those of approximately 600 IT professionals.