Lloyds Banking Group to Cut IT Costs by 35% and Monetize Customer Data as Part of Technology Strategy 3.0
Lloyds Banking Group plans to reduce technology spending by 35% in 2023 compared to 2021 while focusing on monetizing customer data. The initiative aims to save hundreds of millions annually by 2028 and includes retiring outdated applications and transitioning to cloud platforms. The strategy also emphasizes automation and AI training to improve operational efficiency and adapt to competition from fintech challengers like Revolut and Monzo.
Theia Market Signal Identification - AI Assisted
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The bank will retire 862 outdated applications and decommission 15 data centers, moving to cloud-based platforms.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.
Comments