It is interesting to note that today the CEO of TSB in the UK is "stepping down" because of a disastrous IT upgrade throughout the course of 2018 thus far and which is ongoing. The IT "solution" used was an in-house one from TSB's Spanish owner Banco Sabadell.
At the very, very great risk of oversimplifying, one wonders whether this is a case for them of "back to the drawing board?"
I imagine that the new interim CEO does not want to be tied to a failed and unfixable IT system. But that is the position he possibly finds himself in today.
This is of interest because it highlights the very real cost of failure when IT system upgrades do not work and customers cannot get their money and, according to the Financial Times: "The problems were compounded as criminals took advantage of the confusion to defraud many customers". The IT "upgrade" has cost TSB £176 million ..... so far (excluding future liabilities from aggrieved customers, departing customers, foregone business, etc, etc.). This is truly unbelievable.
I imagine TSB may wish to find a new technology solution that actually works and that Bravura would be in a strong position to compete for the business. But, even if TSB seeks to fix its own mess (can they walk away from it now???), this highlights the very real value of Bravura's Sonata and why potential customers might want to use Sonata rather than implement a dodgy in-house solution.
The foundations of Bravura's business appear very strong indeed.
BVS Price at posting:
$4.23 Sentiment: Buy Disclosure: Held
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