Credit Agricole Plans $17 Billion Tech Investment in Four Years
Credit Agricole, the French bank for the agricultural sector, has allocated $16.9 billion (€15 billion) for technological transformation for “greater efficiency,” reports Henry Vilar of Fintech Futures, Finovate’s sister publication.
This capital will be invested over the next four years, aiming to achieve a data-centric architecture in 90% of the group by 2022, as well as $338 million (€300 million) “in increased IT efficiency.”
The group aims to have the totality of its IT staff trained in new technologies at the “new IT university.” This is part of the plan to retrain its staff to be able to handle the new technologies that the financial group aims to test and implement throughout its business lines.
A document issued by the bank says that “100% of emerging technologies” will be tested for new services. That’s right, all of them.
The bank forecasted a very slow level of profit growth for the next four years, as it faces low interest rates and a potential deterioration in its loan portfolio.
In its previous plan, Credit Agricole had targeted a 10% increase in net profit from 2016 until this year but managed to deliver that a year ahead of schedule. The bank reported a 25% profit increase over the two years to 2018.
The bank expects an annual net profit of roughly over $5.6 billion (€5 billion) in 2022, according to its report.
Founded in 1885, Credit Agricole demoed its in-house app store at FinovateEurope 2013.
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