Skip to main content

Co-operative Bank and IBM Sign $160 Million Agreement to Expand Contract

Largest ATM Network Contract in Europe

LONDON - 14 Apr 1999: -- Co-operative Bank today announced that it is expanding its technology outsourcing agreement with IBM to include a $160 million, seven-year contract to manage its national network of Automated Teller Machines (ATM), totaling 600 units. This represents the bank's biggest ever third-party management contract and is the largest contract of its kind for an ATM network in Europe.

Under the terms of the new agreement, IBM Global Services will support the Bank' s existing cash machine network, as well as at least 350 new ATMs which are to be located at Co-op convenience stores over the next two years. IBM will provide all of the ATM service including network management, call center support, software development and installation and maintenance services. This includes predicting the amount of money needed in each cash dispenser, ensuring the security company delivers the right amount of money to each one and making sure that all ATMs are in working order.

"The new contract underlines the importance we place on our cash machine network which is an important interface with our customers," said Mick Firth, executive director, Co-operative Bank. "Unlike many of our competitors, the majority of our machines are in remote locations away from branches, so an agreement of this kind makes perfect sense. As more and more ATMs are positioned away from bank premises in places like railway stations, shopping centers and leisure outlets the idea of having a third-party specialist managing the network will become more common place."

"This is a testament to the close working relationship between the Co-operative Bank team and our team," said Brian Sellwood, general manager, IBM Global Services EMEA North Region. "IBM Global Services has undertaken management of the network while consistently delivering market-leading availability rates. The broad scope of this project and the model we have created for the outsourcing of ATM networks is now attracting interest from banks around the world. We look forward to working with the Co-operative Bank to further enhance its ATM service over the next seven years."

The deal builds on an existing five-year relationship with IBM Global Services that supported the first ever ATM management partnership. As a result of the deal, the Bank maintains the highest cash point availability in the industry at 98 per cent.

"Over the past five years we have been pleased with the service we have received from IBM and that is why we have negotiated this new seven year contract," explained Firth.

In addition, IBM runs a dedicated call center for the Bank out of its Portsmouth offices. The 30 agents at the call center are multi-skilled and are able to offer Co-operative Bank employees round-the-clock advice on the ATM network.

IBM Global Services is the world's largest information technology services provider, with 1998 revenues of approximately $29 billion. Services is the fastest growing part of IBM, with more than 126,000 professionals operating in 160 countries. IBM Global Services integrates all of IBM's capabilities -- services, hardware, software and research -- to help companies of all sizes realize the full value of information technology. For more information visit http://www.ibm.com/services.

# # #

Contact(s) information

Lorna Campbell
IBM
44 - 1844 -338145
lorna@lornac.demon.co.uk

Related XML feeds
Topics XML feeds
Services and solutions