Metro Bank has engaged Infosys to assist in its digital business transformation, focusing on automation, artificial intelligence (AI), and data technologies, while also supporting its cost-reduction initiatives.
Recent reports indicate that the bank is planning to downsize by cutting 300 positions, including roles in its IT department. This follows a previous announcement in March regarding the elimination of 1,000 jobs as part of a broader strategy to reduce costs by £80 million. The partnership with Infosys aims to enhance customer service by integrating AI through Infosys’s generative AI (GenAI) platform, Topaz.
“By the end of this transformation, we will have evolved into a very different business, yet the core essence of Metro Bank will remain unchanged – a service-oriented organization committed to putting customers first,” stated Metro Bank CEO Daniel Frumkin.
A spokesperson for Metro Bank explained to Computer Weekly that the bank is in the process of outsourcing certain business operations, IT, and support functions. While this may regrettably lead to job losses, the bank is simultaneously recruiting in its growing areas, particularly in regional commercial and corporate banking. The bank is committed to working closely with affected employees during consultations to minimize redundancies, emphasizing that store and call center staff will not be affected.
Founded in 2010, Metro Bank made history as the first new UK bank in over a century. Unlike some recent challenger banks that have opted for a branchless model, Metro Bank has embraced a strategy that includes a physical branch network.
Frumkin affirmed the importance of branches, stating, “Our vision for Metro Bank in 2025 and beyond places our stores at the core of our operations, as we continue expanding our footprint and enhancing the Metro Bank experience in the north of England.”
Infosys is broadening its European banking services portfolio through collaborations with both traditional and digital banks across the continent. Last year, it took over the IT operations of Danske Bank in India, part of a $454 million outsourcing agreement over five years. This acquisition in Bangalore, which employs 1,400 IT specialists, has allowed Infosys to integrate GenAI into its service offerings. Additionally, Infosys signed a contract with Keytrade Bank, a Benelux-based online bank, to replace its legacy core banking system with Infosys Finacle’s core banking software as a service, hosted on Microsoft Azure’s public cloud.
“We are thrilled to partner with Metro Bank in driving this transformation, leveraging our advanced digital and AI capabilities, banking expertise, and focus on modernization and automation through Infosys Topaz,” said Dennis Gada, Global Head of Banking and Financial Services at Infosys.