Inside Job: Bank One’s Decision to Insource Bank’s IT Operations
Posted October 16, 2009 by Bierce & Kenerson, P.C. · 
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Bank One, the sixth largest bank holding company in the United States with $270 billion in assets, has been conscientiously in-sourcing its technology, managing the integration of bank acquisitions through its own internal teams. In November 2002, the bank announced the completion of a major systems conversion in Illinois to consolidate its information technologies on “one” platform. This represents the fourth conversion in the last 17 months.
Chairman Jamie Dimon said that the bank had “invested $500 million in improving and consolidating our systems, moving to an upgraded platform that provides our customers with easier access and convenience and our bankers with better and faster information.” The bank estimates that the conversions will save $200 million in annual operating costs. The bank eliminated 600 software applications, including a number of home-grown ones.
“The conversions are key milestones in building a company that leverages technology to help meet our customers’ needs,” Dimon said. “At the same time, we have in-sourced many technology functions so we now control our own destiny. We are now operating as one company with one brand,” he said. “Our focus is on investing in systems that will give Bank One a competitive advantage by improving customer service, reducing costs and accelerating innovation.”
Different points of view make a market in ideas, and in services.
2005 Footnote: Mr. Dimon became Co-Chairman of JP Morgan Chase in the BankOne merger. As a result, the IBM – JP Morgan Chase Summary agreement was terminated to return to insourcing of IT services.