Old Mutual Wealth cancels IT deal with DST Systems
Old Mutual’s UK unit Old Mutual Wealth (OMW) has switched IT providers, the group announced on Tuesday morning. OMW said it cancelled a £450m project awarded to Kansas City-based DST Systems and its subsidiary, International Financial Data Services (IFDS). Of this contract, £330m in costs had been incurred before the decision to terminate it. New Zealand-based fintech company FNZ has been appointed to implement a replacement IT system which has a preliminary estimated cost of between £120m and £160m. "Given the cost, effort and time already invested in the programme, we have not taken these decisions lightly. This has been a difficult journey for all stakeholders," OMW CEO Paul Feeney said in Tuesday’s statement.