UK-based banking group Lloyds is reportedly planning to switch its IT infrastructure to a new core banking platform in a bid to slash operating costs.
According to a report in the Financial Times, the company is currently negotiating with the regulators to transfer data of nearly 500,000 customers from its legacy computer systems to a platform developed by Thought Machine.
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If the move receives regulatory approval, the British bank will carry out similar exercises across its business over the next few years, the publication reported citing an internal company presentation.
The report comes within three months of Lloyds making an investment of £11m in Thought Machine to acquire a 10% stake in the IT start-up.
As per the plan, Lloyds will shift customer data into Thought Machine’s Vault core banking platform.
Vault platform runs on cloud based technology reducing operating costs for the company. The Thought Machine platform also provides better insight to customer data and enables the client to roll-out new products faster.
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By GlobalDataLloyds, which invests £2.2bn a year in IT maintenance, is expected to save more than £750m annually with the move.
However, the transfer of customer data is expected to face strict assessment from the regulators due to multiple technology failures that jolted the British banking industry in the last one year.
Recently, Lloyds Banking Group received a banking licence in Germany to secure its access in EU market post-Brexit.
