Why Banks Like Unicaja are Outsourcing to Tech Providers
Spanish bank Unicaja has handed its technology operations to DXC Technology under a 10-year contract, joining other European lenders that are outsourcing AI implementation rather than building capabilities in-house.
Banks across Europe are hiring external technology providers to manage AI rollouts, with institutions citing skills shortages and capital constraints as primary drivers. The trend marks a departure from previous decades when banks typically developed technology capabilities internally or through smaller tactical partnerships.
“This marks a milestone in our evolution toward a more agile and intelligent operating model, ready to face the challenges of the financial sector,” says Estrella Botas, Head of Technology and Operations at Unicaja. “It’s not just about incorporating technology but about transforming the way we operate to deliver better service to our customers.”
DXC Technology will assume responsibility for Unicaja’s technology operations, including compliance with European regulatory requirements that govern banking technology implementations. The arrangement allows Unicaja to benefit from AI capabilities without making direct investments in systems or personnel.
“This partnership further strengthens our global leadership in the banking sector, where the world's leading financial institutions rely on us for our decades of experience and deep industry expertise,” comments Alfonso Garcia, Managing Director of DXC Technology, Spain & Portugal. “In Spain, we support all major banks in driving competitive advantage and navigating complex challenges.”
DXC Technology acquires Unicaja subsidiary FK2
DXC Technology will acquire FK2, a Unicaja subsidiary, subject to regulatory approval, gaining direct access to staff familiar with the bank’s operations. Technology companies are increasingly buying banking subsidiaries and operations to accelerate their understanding of financial services processes rather than relying solely on external consultation.
The FK2 acquisition provides DXC Technology with personnel who understand Unicaja’s current systems and processes, reducing implementation risks associated with large-scale technology transfers. Such acquisitions have become common among technology providers working with banks as institutions demand continuity during operational transitions.
“This partnership allows us to accelerate our transformation thanks to DXC's expertise in industrialised processes, technological capabilities and proven success in similar agreements,” says Juan Medina, Head of People, Organisation and Legal at Unicaja.
Technology providers are incorporating banking staff and processes into their service delivery models while maintaining institutional knowledge and introducing new capabilities. The approach addresses banks’ concerns about operational disruption during technology transitions without completely replacing existing operations.
Do European regulations constrain banking technology choices?
European banking regulations influence how institutions approach technology partnerships, with compliance requirements limiting the range of viable providers and implementation approaches. Banks must ensure that external technology arrangements meet regulatory standards for data protection, operational resilience and risk management.
The regulatory environment creates barriers to entry for technology providers, as companies must demonstrate compliance capabilities before banks will engage them for critical operations. This requirement favours established providers with proven track records in regulated industries over newer entrants with innovative technologies but limited compliance experience.
DXC Technology’s 45-year history in banking provides regulatory comfort for institutions like Unicaja that must justify technology partnerships to supervisory authorities. European regulators require banks to demonstrate that outsourcing arrangements do not compromise their ability to meet regulatory obligations or manage operational risks.
Banks are selecting technology partners based on their ability to navigate regulatory requirements as well as their technical capabilities, with compliance track records often weighing as heavily as innovation potential in procurement decisions.
Juan Medina emphasises that technology partnerships must enhance operational capabilities without compromising existing risk management frameworks. “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,” he says.
