Virgin Money takeover puts ex-Barclays chief’s 10x contract in doubt
It is unclear what a potential break fee might cost the combined group.
Ex-Barclays chief Antony Jenkins may see his banking tech services firm lose its largest commercial contract to date in the wake of CYBG’s takeover of Virgin Money.
10x Future Technologies has been building Virgin Money’s digital bank with plans for a full roll-out in 2019, but the platform’s future is now in doubt after CYBG said the bank was likely to lean on its own infrastructure.
When asked what will happen to the arrangement with 10x, CYBG chief executive David Duffy told journalists: “We have all the technology we need to deliver all the services for both ourselves and Virgin so we will be re-platforming with our technology.”
While CYBG executives stressed that it was “premature to talk about a specific contract”, they said the bank had made “appropriate allowances for all contracts that we might think of exiting”.
We have all the technology we need to deliver all the services for both ourselves and Virgin so we will be re-platforming with our technology David Duffy, CYBG chief executive
The full financial terms of Virgin Money’s contract with 10x have not been disclosed and it is unclear what a potential break fee might cost the combined group.
However, Virgin Money said it was expecting to spend £40 million in capital investments over 2018, some of which was aimed at the digital banking platform.
10x declined to comment.
Virgin Money originally announced its partnership with 10x in late 2016 – shortly after the ex-Barclays chief executive launched the banking tech services firm in October that year.
10x has since raised £34 million in a Series A funding round, led by China’s Ping An and including consultancy Oliver Wyman.