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Banco Sabadell, TSB Bank hire IBM for digitization

Banco de Sabadell SA and U.K.-based unit TSB Banking Group PLC have hired IBM Services to advance their digitization.

The Spain-based bank will pay €1 billion for IBM to modernize its technology and shift to a hybrid cloud environment over a 10-year period, Reuters reported.

IBM, along with Red Hat OpenShift, will help Sabadell manage its hybrid cloud environment, the lender said Jan. 15.

TSB said IBM will also build its cloud environment and help run its core banking infrastructure.

TSB had suffered a major IT shutdown in 2018 amid its separation from Lloyds Banking Group PLC. Sabadell took over TSB in 2015.

The U.K.-based unit will also set up a technology center in Edinburgh that will create roughly 100 jobs.