Lloyds consults on plans to move customer accounts to new core

Lloyds consults on plans to move customer accounts to new core

Lloyds Bank is looking at a £750 million annual saving in tech spend as it plots a move to a new core banking platform from tech startup Thought Machine.

Lloyds paid £11 million for a 10% stake in Thought Machine in November, following a year of testing of the startup's cloud-based Vault product.

At the time the bank announced that it would enter into a development and deployment phase in 2019.

According to an internal memo seen by the Financial Times, the bank has been in discussion with regulators about moving a first tranche of 500,000 customer across from the defunct Intelligent Finance arm to the new platform. If successful, the bank plans to shift more of its business in a phased process over the next few years.

Lloyds plans to use the new platform to catch up with digital-native challengers, acknowledging that incremental improvements to its legacy infrastructure can only take it so far.

A reduction in costs is also expected, with Thought Machine claiming that the bank will reap an estimated 35-40% in savings by moving across to Vault. For a bank that spends about £2.2 billion per year to keep the lights on across its business, that represents a £750 million per annum saving.

Comments: (1)

Kishen Kumar
Kishen Kumar - ASK Investment Ltd - Mumbai 23 January, 2019, 12:07Be the first to give this comment the thumbs up 0 likes

I think it would really be worth moving the accounts on the new Thought machine platform. It will provide an edge to transcend to the digital world much more rapidly. The next move should be to actuall move many of the SME and Corporates to really make use of the blockchain technology to seamlessly integrate with Ripple and SWIFT etc to provide the seamless experience for international business.

It can seamless integrate with many of the Banks across the globe who have moved their trade Platforms on blockchain and provide the seamless Digital experince.

I do agree it will be sometime but it will pay off in the long run.