Tough integration ahead for Wells and Wachovia

No one doubts the synergies of Wells Fargo and Wachovia on paper. But the success of the program will hinge, to some degree, on the ability of the two banks to integrate their technology. This integration may not be easy.

The Atlanta Business Chronicle notes that Wachovia was already in the middle of a tough integration stemming from its 2007 deal to buy A.G. Edwards, the St. Louis-based regional power. Apparently, a common platform has not yet been created--leading one to believe this process will stretch out for several years. The IT brass at both companies have a lot of decisions to make as to whose approach to keep or to, perhaps, start from scratch. This will not necessarily hamper business; it's possible that the combined bank can find a way to minimize the differences in underlying technology. But then again, costs and efficiencies are a big part of the equation, and common technology is big part of that.

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