Lloyds targets 35% tech cost cut, commercialises anonymised customer data
Lloyds Banking Group will expand the commercial use of anonymised customer data and automate compliance processes, aiming for new revenue channels and real-time governance checks. The bank targets a 35% reduction in technology costs this year versus 2021 levels, phasing out 862 applications and closing 15 data centres.
1. Technology Strategy 3.0 outlines cost reduction targets
Lloyds Banking Group’s CTO Vic Weigler has introduced Technology Strategy 3.0 with an objective to reduce technology spending by 35% this year relative to 2021 levels. Between 2021 and 2025 the bank has already realised £1.5 billion in savings, and it aims to cut annual IT costs by several hundred million pounds by 2028.
2. Expanded data commercialisation
The bank plans to increase revenue by scaling the sale of anonymised customer data to external businesses, positioning its data analytics and governance capabilities as products. This move is expected to unlock new revenue channels by leveraging insights from its 28 million customer base while preserving privacy through anonymisation.
3. Automation of compliance processes
Under the new plan, a larger share of regulatory governance checks will be performed automatically and in real time, reducing manual oversight while maintaining human review for high-risk areas. This automation is projected to enhance efficiency, accelerate reporting, and cut back on compliance-related resource requirements.
4. Streamlined IT infrastructure
To support these initiatives, the bank will phase out 862 internal applications and close 15 data centres, migrating customer data storage to cloud platforms. These measures aim to lower maintenance expenses, simplify application management, and reinvest savings into further digital productivity tools.