The alliance will allow building societies and banks to respond to changing market conditions and to reduce IT expenses.
HP has joined forces with Yorkshire Building Society to develop a new cloud-based IT platform.
The platform will provide access to retail banking applications for UK-based financial service institutions, including mortgages and savings applications, regulatory reporting, business intelligence and business process outsourcing.
The alliance aims to make banks and building societies more competitive.
Yorkshire Building Society CTO David Henderson said that the cloud-based service will offer a new way of working for the UK financial services market by moving away from a capital model to a service model, reducing costs and time to market.
"The flexibility to meet ever-changing market needs and customer expectations presents major challenges for any organization, but especially financial institutions," Henderson said.
HP’s UK & Ireland financial services industry VP Jeremy Suddards added: "The key to success is to leverage the latest technology like HP Enterprise Cloud Services that delivers real value and the ability to adapt rapidly to change."
As part of the collaboration, HP will offer the new platform’s customers data centre, service management, application development and client support capabilities.
The alliance will also allow building societies and banks to respond to changing market conditions while reducing their IT expenses, the firms say.
Under the alliance, the Yorkshire will provide its core application software, industry knowledge, regulatory compliance and financial services knowledge to the technology provider.