Lloyds Banking Group Plans to Cut IT Costs by Hundreds of Millions by 2028

Lloyds Banking Group is planning to cut hundreds of millions of pounds in IT spending each year by 2028, as the bank accelerates its digital transformation and app consolidation strategy.

The bank aims to reduce technology costs by roughly 35 percent compared with spending levels recorded in 2021. Internal documents presented to investors show that the bank delivered approximately £1.5 billion in technology savings between 2021 and 2025.

Application and Data Centre Consolidation

As part of the strategy, Lloyds plans to phase out 862 internal applications and close 15 data centres, shifting more customer data storage to cloud-based solutions. The consolidation is designed to reduce complexity and improve operational efficiency across the group.

Technology Strategy 3.0

The bank's Chief Technology Officer Vic Weigler set out the changes in a strategic document labelled "Technology Strategy 3.0." The strategy includes relying more heavily on automated controls built directly into systems, removing some manual governance steps, and replacing them with automated controls operating in real time.

The moves are part of Lloyds' broader ambition to position itself as a technology-led financial services group, with significant investment in automation, cloud infrastructure, and data commercialisation capabilities.

About Lloyds Banking Group

Lloyds Banking Group plc is a major British financial institution formed through the acquisition of HBOS by Lloyds TSB in 2009. The group serves over 26 million customers through brands including Lloyds Bank, Halifax, Bank of Scotland, and Scottish Widows.