Bank and Abbey Essay
Keywords: IS strategy; IT architecture; merger …show more content…
In the 080s and 1990s, the European retail banking sector saw various national M&A which aimed to achieve greater scale in a new global landscape. Yet, few mergers achieved
IT synergies. Fuster noted:
There was virtually no integration among these new applications given that they were built at different points in time. This made for loose co-ordination between the front office and back office and internal departments. ...
Customer information did not flow easily across the organisation. By the early 1990s, banking IT management had greatly increased in complexity. Citing increasing operational complexity due to its aggressive growth strategy, Santander outsourced all IT operations to Andersen Consulting.
Even the role of CIO was performed by an Andersen partner. Soon, however, many felt that the outsourcing deal compromized systems integration and business process management, and that impeded strong alignment with the bank’s changing strategy. By 1995, a decision was taken to back-source IT.
BS acquires Banesto – and Partenon
In 1994, BS acquired Banesto. Although this bank was in deep trouble at that time, Santander top managers saw value in Banesto’s IT system and governance. Alfredo Sa´enz and Jose´ Marı´a Fuster6 had overseen