Royal Bank of Scotland (RBS) is to cut 500
staff from its UK wealth management divisions, Coutts & Co and
Adam & Co, over the next three years as part of a major IT
overhaul.
An RBS spokesperson told
PBI the bulk of reductions would
come among Coutts & Co and Adam & Co’s back office staff as
part of a major investment in IT systems and a wealth platform,
Avaloq Banking System, believed to be worth up to £100m
($145m).
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But the spokesperson could not comment on a
decrease in client-facing staff, although it is understood the bulk
of the cuts will come from within Coutts, which employs roughly
3,100 staff.
The cut will result in a 15% headcount
reduction among Coutts and Adam & Co’s 3,500 employees, but the
1,500 staff at RBS’s international wealth management arm, RBS
Coutts, will not be affected.
The upgrade to Avaloq
involves rolling out the system across the UK as
part of a migration to a single global platform to improve how
private bankers and relationship managers support their clients,
RBS said.
“This will have benefits for clients and will
bring efficiencies in how we do business but as a result
unfortunately it will mean that roles will be lost. It will allow
client-facing staff more time to spend with clients,” the RBS
spokesperson said.
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By GlobalDataThe Avaloq system has been used by RBS Coutts
in Switzerland since January 2008.
