European lender Unicaja outsources AI tech to DXC in banking shift
MALAGA, SPAIN — Spanish bank Unicaja has signed a 10-year deal with DXC Technology to outsource its AI and technology operations, joining a growing trend among European lenders to rely on external providers.
The agreement involves DXC acquiring the Unicaja subsidiary, FK2, and maintaining continuity, as some action is necessary to mitigate the challenges facing the sector in terms of regulations and skills.
European banks turn to outsourcing for AI capabilities
DXC, which already works with major Spanish banks, highlights its regulatory expertise as a key advantage in securing such contracts.
The firm’s acquisition of Unicaja’s FK2 subsidiary ensures smoother integration by retaining staff familiar with the bank’s systems.
“This marks a milestone in our evolution toward a more agile and intelligent operating model, ready to face the challenges of the financial sector,” said Estrella Botas, Head of Technology and Operations at Unicaja.
Analysts note that this model—outsourcing combined with subsidiary buyouts—is becoming the standard as banks prioritize risk-free digital transitions over owning their tech stacks.
Botas also stresses that, “It’s not just about incorporating technology but about transforming the way we operate to deliver better service to our customers.”
Regulatory hurdles shape tech partnerships
Strict European Union banking rules are forcing lenders to choose established providers like DXC over niche innovators, as compliance takes precedence over cutting-edge technology.
The cooperation of Unicaja suggests that the regulation of data security and operational resilience restricts the opportunities of banks, and the most experienced companies in the industry have decades of experience.
The 45-year history of DXC in the finance sector contributed to the signing of the deal, as regulators require evidence that the outsourcing will not threaten stability.
Juan Medina, Head of People, Organization, and Legal at Unicaja, emphasizes that the agreement does not replace but complements the existing internal units, which is crucial for providing regulatory consent.
He notes, “It equips the bank with new tools and capabilities to support and optimise the work of our current teams, who will remain a vital part of this new model.”
The trend is one feature of a wider industry evolution: the workings of being innovative through service offerings are not enough to secure banking services contracts in Europe, whose markets are highly regulated.
