TSB is to open a technology centre in Edinburgh – creating 100 new jobs – as part of the bank’s £120m investment in digital.

The bank is embarking on a new two-year digital strategy which will see it run services on IBM Services’ cloud.

The technical specialists, data engineers and analysts, and IT run specialists will be based at the bank’s Henry Duncan House HQ in the capital.

The announcement follows the Bank’s pledge to invest £120 million to transform digital channels over the next three years, as part of its 2022 strategic plan, announced by the Bank’s new CEO, Debbie Crosbie, in November last year; it builds on TSB’s commitment in March 2019 to consolidate its IT operations and optimise how it runs its IT infrastructure and supplier relationships.

The services agreement will see IBM build and manage TSB’s private cloud environment, running services across TSB’s core banking platforms with all of the infrastructure being operated and managed by IBM under supervision by TSB.

By hosting and managing select services on a private cloud, operated by IBM, TSB will be able to strengthen IT resilience and leverage higher value technology, including AI, to deliver new innovative cloud-native services to its customers.

This is the first step in the TSB strategy to optimise its new state-of-the-art platform which provides multi-cloud and data capabilities for the Bank. All core banking channels and applications including ATMs, internet banking, mobile banking and high street branches will now run on a unified cloud platform. This will offer customers the best services while ensuring the security and confidentiality of their data.

As part of this move, TSB will itself also create a new Technology Centre in Edinburgh, bringing around 100 new IT jobs to the region, including technical specialists, data engineers and analysts, and IT run specialists.  The new Technology centre will be based in Henry Duncan House in George Street, opening in April 2020.

TSB’s Chief Operating Officer, Suresh Viswanathan, said: “Our partnership with IBM marks the next exciting phase in our tech transformation. At a time when both the pace of change and the customer demand for new services is increasing, our partnership ensures our digital offering remains competitive and allows us to act faster to meet the needs of TSB customers.”

IBM UK and Ireland, Global Technology Services General Manager, Tosca Colangeli, said: “As the financial services industry continues its rapid digital transformation, banks need a reliable, resilient and secure technology environment to meet the needs of customers and address complex security and regulatory requirements. An open hybrid IT cloud platform, built and managed with IBM’s deep industry expertise, is the best foundation for financial services providers to respond to these challenges and prepares them to securely integrate with IBM financial services ready public cloud capabilities in the future.”

IBM and TSB signed this transaction in IBM’s fourth quarter of 2019.