Royal Bank of Canada, TD Bank, National Bank Canada and Scotiabank spent close to CA$1.8 billion ($1.3 billion) integrating the tech stacks of their recent acquisitions with their existing tech stack in 2024, according to the banks’ earnings reports. 

Merging tech stacks is capital intensive and complex, and is often compared to “high-risk brain surgery,” James White, general manager of banking industry at software company Total Expert, told Bank Automation News. 

“For medium-sized banks, costs can exceed $50 million, while larger banks may face expenses ranging from $300 million to $400 million,” White said. 

RBC created a team of 4,000 employees, including 2,000 technology professionals, to work on the integration, according to its earnings report. 

RBC’s investment in cloud, IT risk, data and AI over the past several years allowed it to use existing tools and services to tackle the acquisition, according to the annual report. 

The $1.4 trillion bank completed the integration over one weekend due to merger-related planning and tech initiatives, the annual report stated. 

In Canada this year, four banks completed tech stack integrations, spending: 

(Sources/Bank earnings reports) 

Leaning on vendors

Merging tech stacks can require significant resources and time, and FIs usually bring in third-party vendors like Capgemini, Cognizant and Kony to be sure transitions go smoothly, White said. 

Merging core systems is one of the most intricate integrations, White said, adding that data conversion can be difficult due to differences in data frameworks and duplication of data and applications. 

“Consolidating banks and applications requires resolving data collection and ensuring seamless interoperability, which can be complex,” White added. 

Editor’s note: All amounts have been converted to U.S. dollars. 

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