Banks create new technology service company

AIB Group and Bank of Ireland have announced that they are to create a new technology services company to provide IT infrastructure and services for the two banks.

The deal will see both companies own 50% each of the new venture and will be run on a commercial basis.

The new company will provide the UK and Irish arms of the two banks and other companies, both locally and abroad with the day-to-day management and building of new IT infrastructure, help-desk services, data centre operations and back-up facilities.

"This JV will have the scale and the resources to compete for business in Ireland and elsewhere. Its transaction levels will compare with those of major banks in Britain and Europe and it will bring together a range of skills in both organisations that stand comparison with the best in any market" said Cyril Dunne, Chief Information Officer of Bank of Ireland.

According to a report released by both companies, the new venture will employ 700 people and have an independent management team.