Barclays Wealth has announced launched a five-year plan to upgrade its IT programmes.
The business first revealed the plan to invest £230 million in overhauling its IT and infrastructure earlier this year. In addition, Barclays Wealth is spending £120 million on several hundred new client-facing staff, with a focus on the US and Asia.
In its Q1 2010 interim management statement dated 30 April, the wealth management division said that it expects to make the £350 million investment in “increments”, mostly over the next three years. It plans to spend £100 million of it during 2010.
The latest statement shows that Barclays Wealth’s profits increased 50 percent to £45 million. Chris Lucas, group finance director at Barclays, said that this was driven by “very strong” income growth in the high net worth businesses.
Although the details of the new IT platform have not been revealed, it has been previously reported that the upgrade will focus on making it easier to monitor clients’ accounts, as well as setting up accounts for new customers.
Barclays recently completed the integration of Lehman Brothers’ US business, which it bought in 2008 as Lehman entered administration.
In other Barclays news, the bank in January decided not to renew a £400 million, six-year application development deal with supplier Accenture, for "commercial reasons". It also ended a desktop services contract with Getronics. It declined to give details.
The company has been extensively cutting IT staff. Last May it emerged Barclays would cut 700 IT staff by the end of the year, reportedly offshoring work to Singapore, Hungary and India.