Lloyds Banking Group to Cut IT Costs by 35% and Monetize Customer Data as Part of Technology Strategy 3.0
Lloyds Banking Group is implementing Technology Strategy 3.0 to position itself as a leading fintech in the UK. The strategy aims to reduce IT spending by 35% in 2023 relative to 2021, building on £1.5 billion in savings since 2021.
It anticipates ongoing reductions in IT costs by hundreds of millions by 2028 through streamlined operations. A key aspect of the plan involves anonymizing customer data for external partners, generating new revenue streams.
The bank will retire 862 outdated applications and decommission 15 data centers, moving to cloud-based platforms. Workforce adjustments will increase data and technology roles, while AI training will enhance productivity. The strategy aims to enhance customer experiences and operational agility amid competition from digital-first challengers.
