UK-based Metro Bank has signed a long-term software testing and implementation agreement with Indian tech giant Infosys.
The multi-year deal aims to upgrade the bank’s IT and software functions, while digitally transforming Metro Bank’s business operations, the firms said in a statement. Financial details have not been disclosed.
“The collaboration supports the bank’s ongoing efficiency and cost saving efforts,” explained Daniel Frumkin, chief executive officer of the relatively young British bank.
The extensive software upgrade, which will include a host of testing cycles, should help Metro Bank to improve its digital capabilities, expand its automation capabilities, refine data, and embed further AI features, leveraging Infosys Topaz, a testing offering that use generative AI technologies.
“This collaboration builds on the solid foundations we have already laid, creating a scalable organisation that is fit for the future,” Frumkin continued.
“At the end of this transformation, we should be a very different business,” he added.
Metro Bank expects to deliver £80 million of annualized cost savings this year across multiple initiatives, as it progresses towards the target of reaching mid-to-high teen return on tangible equity by 2027.
“Our vision for Metro Bank in 2025 and beyond, places our store network firmly at its heart, as we continue with our plans to open new stores and bring Metro Bank to the north of England,” Frumkin stated.
In addition, Dennis Gada, EVP and Global Head of Banking and Financial Services, Infosys, said that “Metro Bank’s strategic vision and business model, combined with our expertise, should significantly contribute to creating value and establishing a top-tier, customer-centric bank.
He added: “Our shared goal is to continually enhance customer engagement, community focus, and the integration of physical and digital experiences, thereby accelerating growth and value creation for Metro Bank.”
Insurance deal
The latest software contract win in the UK comes only days after Infosys said that the Life Insurance Corporation of India (LIC), the largest life insurance company in India, handed the firm a major multi-year software testing deal.
Infosys was selected by LIC for its experience in executing large-scale digital transformation projects and its expertise in the banking, financial and insurance sectors, the insurer stressed in a statement.
The tech giant will provide LIC with turnkey system integration and software testing services using AI capabilities from Infosys Topaz and DevSecOps services from Infosys Cobalt.
Infosys Cobalt is a set of services, solutions, and platforms for enterprises to expand their cloud capabilities, while Infosys Topaz, an AI-first offering suite, links Cobalt to generative AI capabilities.
In addition, the company will start work to establish a new digital infrastructure and carry out testing, monitoring and maintenance, once the platform is operational.
In summary, Infosys will “spearhead [LIC’s] digital transformation initiative called DIVE, or Digital Innovation and Value Enhancement,” the firm wrote in an email.
“As part of the collaboration, Infosys will enable the creation of a cutting-edge NextGen Digital Platform,” LIC said.
The NextGen Digital Platform will enable LIC to realise the objectives of DIVE and will also serve as an open platform, enabling swift integration with FinTech companies and Bancassurance partners, explained Shri Siddhartha Mohanty, the CEO & managing director of LIC.
“Our collaboration with Infosys marks a significant milestone in our digital transformation journey,” Mohanty said.
In addition, Salil Parekh, the current chief executive officer of Infosys, mentioned that “LIC is a name that resonates across generations of Indians.”
“By leveraging Infosys’ extensive experience in digital transformation initiatives and prowess in AI and Cloud, we aim to equip LIC with a robust digital infrastructure that will deliver superior customer engagement, enhance operational efficiency and enable rapid market responsiveness.
Lawsuit
The major contract win in its home market comes only shortly after software testing provider Cognizant said it will sue Infosys in a Texas court over the use of its insurance software.
New Jersey-based Cognizant alleges that Infosys has stolen some of its trade secrets that relate to its insurance software tools, including testing solutions.
The company claims that the Indian software firm “unlawfully extracted data from its databases and used it to build and market competing software.”
Cognizant’s software products are used by a range of large insurance companies, mostly across the US, to speed up and automate administrative tasks, including regular testing and monitoring.
Infosys allegedly misused Cognizant’s TriZetto’s software solution in order “to create test cases”, thereby repacking TriZetto’s data sets into an Infosys platform, according to court filings.
Moreover, the firm claimed Infosys broke US laws by designing and creating software in order to extract confidential TriZetto trade secrets.
Cognizant has asked a Texas court for an unspecified amount of monetary damages and requested it will order Infosys to half the use of its software and trade secrets with immediate effect.
In response to the legal complaint, Infosys released a statement, strongly denying the allegations, saying the company plans to defend itself in court.
When contacted by QA Financial, an Infosys spokesman declined to discuss Cognizant TriZetto Software v. Infosys Ltd at the U.S. District Court for the Northern District of Texas, No. 3:24-cv-02158.
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