Lloyds Consults Regulator on Moving Core Banking Accounts to the Cloud
The bank is reportedly targeting an annual saving of £750 million in tech spend. This follows Lloyds £11 million investment in Thought Machine last year, which allowed the bank to acquire a 10% stake in the startup.
The November investment followed a year of testing of the startup's cloud-based Vault product. At the time, Lloyds also announced that it would be entering a development and deployment phase in 2019.
The bank has since been in discussion with regulators about moving an initial 500,000 customer accounts from the now-defunct Intelligent Finance division to the new, Thought Machine-powered platform, according to an internal memo seen by the Financial Times. If this first phase is scussessful, the bank will move more of its business in several stages over the next few years.
The project is intended to help Lloyds catch up with digital challenges, acknowledging that incremental improvements to the legacy infrastructure would be insufficient. A reduction in costs is also expected, with Thought Machine claiming that the bank will reap an estimated 35-40% of its bloated £2.2 billion annual digital spend.