UK banks and the procurement gap

Stephen Kelly, CEO, Cirata

The UK banking sector is one of the largest buyers of technology in Europe.

It is also one of the most visible advocates of supporting British business. Those two positions are not fully aligned. Across the system, there are already clear inefficiencies in technology procurement.

Legacy systems and fragmented approaches cost the public sector an estimated £45bn annually: ITPro
Supplier concentration and low switching rates limit competition and innovation: TechRadar

Banks are part of that same ecosystem.

At the same time, global providers are investing heavily in UK infrastructure. Amazon alone has committed billions to UK data centres: Reuters

So the direction of travel is clear. Increasing reliance on a small number of global providers. In parallel, UK technology companies are winning contracts with US financial institutions but struggling to secure engagement with UK banks. This is not about standards. These companies are already meeting the requirements of some of the most demanding clients in the world. It is about access.

Following the 2008 financial crisis, UK banks benefited from taxpayer support. Since then, many have positioned themselves as supporters of UK business. That should extend to procurement.

A straightforward step would be for the UK’s top 20 banks to commit to doubling their procurement spend with UK technology companies. This is not a request for preferential treatment. It is a request for consistency. No favours. No intervention. Just a level playing field and a fair hearing.

The UK has a strong pipeline of technology companies. The banking sector has significant demand. At the moment, those two are not sufficiently connected.

That is a missed opportunity, both commercially and strategically.

– Stephen Kelly, CEO, Cirata

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