IBM has signed a $700 million agreement with Banco Santander to help the Spanish banking giant improve and expand its digital capabilities. Santander`s agreement with IBM will help it take advantage of the benefits of digital skills and technologies in the company`s transformation. Many traditional banks still operate legacy systems, making it painful and costly to maintain and modify their IT architecture, while the lack of modern technologies to analyze customer data makes it difficult to meet the changing needs of their customers. Santander has signed a five-year, $700 million global technology contract with IBM as it plans to keep its digital services and banking technologies fresh. After signing the new agreement with IBM, the technology company said it will help the cantabrian-owned bank “enrich its services and applications” with artificial intelligence technologies, Blockchain Y Big Data, in addition to strengthening its IT security. In other industries, IBM announced last week a multi-million euro agreement with Smart Energy Water, which provides saas loyalty and analysis tools to distribution companies. Next came IBM Cloud`s contracts with Vodafone ($550 million) and France`s largest bank, BNP Paribas. IBM continues to inject profits into the financial services contract and has entered into a huge $700 million global agreement with Banco Santander, as well as with ICBC Argentina and the Hyundai and Kia Motors card unit. The agreement, valued at approximately $547 million, will help Santander Group evolve into an open, flexible and modern IT environment it needs to realize the important role that technology and digital skills play in the company`s business strategy. Santander is one of a list of financial institutions that have contracts with IBM for hybrid cloud offerings and services, including bank of the Philippine Islands ($260 million), BNP Paribas (an eight-year deal for an unrebroad amount), Westpac, Lloyds Banking Group, Credit Mutuel, Krungsri, Royal Bank of Canada and Mizuho Bank. In addition, ICBC Argentina announced a five-year, $63 million agreement with IBM Services “focused on redefining the bank`s customer experience with IBM Watson and IBM Cloud,” said Big Blue, adding that 19 of Fortune`s 20 largest banks and financial institutions use IBM Cloud.
The agreement will enable the Santander Group, while saving on IT spending each year, to significantly evolve into an open, flexible and modern IT environment it needs to realize the central role that technology and digital skills play in its business strategy. With this modernization journey, which is essential for further efficiency gains in the bank`s operations, the agreement will also strengthen Santander`s ability to offer innovative services to its customers. MADRID and SAN FRANCISCO, February 13, 2019 /PRNewswire/ — IBM (NYSE: IBM) and Banco Santander today announced a five-year, $700 million global technology agreement that will allow Santander Group to accelerate and deepen its business transformation.