Bank of Scotland(Governor & Co of)
15 February 2001
BANK OF SCOTLAND AND F.I. GROUP ANNOUNCE A NEW PHASE IN
THE DEVELOPMENT OF FIRST BANKING SYSTEMS
Bank of Scotland and F.I. Group (FI), a leading business technology services
company, are to restructure their joint venture, First Banking Systems (FBS).
The economic effect of the change will be neutral for both FI and Bank of
Scotland although FI will become the majority shareholder under the new
structure. The committed revenue income from Bank of Scotland to FBS remains
at £285m to 2007.
This change in structure reflects the development of FBS into a comprehensive
IT services organisation. 500 Bank of Scotland staff, who are currently
seconded to FBS will be transferred to FI under a Transfer of Undertaking
(TUPE), safeguarding their existing contractual terms and conditions.
Consultation with staff will commence shortly and the transfer is planned for
early April 2001.
The joint venture, which was created in June 1998, provides Bank of Scotland
with IT application development and maintenance services and has proved a huge
success, with performance consistently exceeding our expectations.