NatWest, aiming to modernize its technology and reduce costs, has partnered with Accenture and Amazon Web Services (AWS) for a five-year project.

Revamping Data Storage Systems

This collaboration will involve redesigning NatWest’s data storage methods to improve the efficiency of customer data management. The primary goal is to expedite the process of alerting customers about potential fraud risks, thereby enhancing the overall experience and security for users.

Currently, it takes up to five days for the bank to identify fraudulent activities and notify clients after combing through the data. The partnership with AWS and Accenture aims to reduce this timeframe significantly by implementing a unified system that facilitates quicker analysis and response times.

Addressing Competitor Pressures

The push for digital transformation in banking comes amid growing competition from newer financial technology firms like Revolut, which are leveraging user-friendly mobile applications. As a result, traditional banks such as NatWest and its rival Lloyds Banking Group are focusing on enhancing their digital capabilities.

Lloyds Banking Group has already embarked on a significant digitalization drive to transfer data to cloud systems, leading to reduced personnel numbers. Similar efforts at NatWest could lead to some job losses, although the bank did not provide specifics regarding this aspect of its project.

Challenges and Risks

While such overhauls promise numerous benefits, they also come with inherent risks. Banks often face substantial costs associated with these transformations, which can run into millions of pounds annually. For instance, TSB faced significant IT issues during its transition from Lloyds’ systems to Sabadell’s management.