Three building societies outsource IT to Unisys cloud to cut costs

Three UK building societies will migrate their core IT platforms to the cloud as part of the launch of a software as a service offering from Unisys, offering predictable delivery costs and support for regulatory compliance.

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Three building societies will migrate their core IT platforms to a new private cloud platform from Unisys in a bid to reduce costs and enable greater flexibility in managing their IT requirements.

Ipswich, Loughborough and Dudley building societies – which have combined assets of over £1 billion – will move their mortgage and savings platforms to the cloud as part of 10-year contracts with the IT supplier. Skipton Building Society, the fourth largest in the UK, is currently delivering the IT to the three firms as part of a shared services deal.

The Unisys cloud platform will support delivery of all aspects of customer account services, from customer enquiry and application to account closure, and will also provide support for branch and call centre operations. Furthermore Unisys will provide data warehousing capabilities, arrears management and full data centre backup and recovery solutions.

“The managed service approach is ideally suited to our needs and gives us access to best of breed solutions for account management and compliance at a cost effective price,” said Jeremy Wood, CEO at Dudley Building Society. “The Unisys solution ensures we can deliver a robust, secure service that enables us to deliver excellent customer service to our customers.”

“Our priority is to provide top-quality service to our customers, and this new approach will allow us to focus on the business while relying on Unisys to deal with the management of our core IT system,” added Paul Winter, CEO at Ipswich Building Society.

Unisys will be responsible for migrating account and customer data from the building societies and their existing suppliers to the new IT platform. The cloud service will be delivered from Unisys’ UK data centre in Milton Keynes after its launch in early 2014.

The three companies are the latest UK building societies to move their core IT to the cloud. Yorkshire Building Society partnered with HP on a project to deliver mortgage and savings systems to other financial sector firms via a virtual private cloud, with Leeds Building Society named as the first customer of the shared service.

Last month Furness Building Society also announced that it has replaced its core IT infrastructure with a mortgage and savings suite from Sopra Banking Software in a bid to speed up product development.