Banks merger deals blow to Jenkins’ IT adventure
ANTONY Jenkins, the former Barclays boss turned IT entrepreneur, is on the verge of losing his first big deal, worth tens of millions of pounds.
Jenkins was hired by Virgin Money in November 2016 to help it build a new IT platform.
But Virgin Money is now merging with CYBG, the former Clydesdale and Yorkshire bank. The combined bank is likely to dispense with the services of Jenkins’ firm, 10x Future Technologies, sources on both sides said.
CYBG, which is the dominant partner, says it will use its own technology platform instead.
Jenkins – whose technology start-up has raised £34 million in funding and has 150 staff – believes digital changes will transform banking, making products cheaper and more personalised. His foray into bank technology was revealed by The Mail on Sunday in 2016, with leaked documents showing he had met financier Amanda Staveley to discuss his plans.
Jenkins earned tens of millions as Barclays boss, earning the nickname ‘Saint Antony’ for his attempts to reform the bank’s culture following the financial crisis.
CYBG and Virgin announced a merger deal last Monday. Virgin Money’s interest-free balance transfer credit card business looks set to be reined in, as CYBG has steered clear of the 0 per cent balance transfer business.
It told investors last week it will look closely at how Virgin accounts for the income on the 0 per cent balance transfer cards, amid fears banks have been over-optimistic on how much interest they would ultimately earn on the deals.