A senior banker at Lloyds has expressed concerns that the bank’s existing on-site technology is “not fit for purpose,” as revealed in a recorded internal meeting obtained by the Mail on Sunday. This technology is essential as it hosts the majority of the bank’s data and services.
Nick Williams, Lloyds’ group transformation director, addressed employee inquiries during the call. According to the Mail on Sunday, the bank is undertaking an internal project named Voyager, aimed at updating its outdated technology through cloud integration.
In the meeting, Williams remarked about their ‘on-premise’ software, saying, “The bottom line is our prem [premises] capability today is not fit for purpose.” He acknowledged the urgent need to address this issue, indicating that the age of their technology infrastructure poses significant concerns.
Williams noted that “99%” of Lloyds’ data and services are still managed on the bank’s own servers, although a source close to the bank claimed that the technology remains robust, with one of the lowest levels of outages reported.
He added, “To move forwards and progressively modernise and simplify what we’re doing, we’ve got to move on to a more modern architecture. It’s not just about buying new hardware; the reason we’re still tied to ageing infrastructure is that the applications are incompatible with new systems, so it’s very much a collective effort.”
The appointment of Charlie Nunn as Lloyds’ CEO last year was largely influenced by the need for a technological overhaul. Nunn is expected to announce a new strategy for the bank in February, alongside their annual results, which will likely include plans for technological upgrades.
Mark Brown, general secretary of the trade union BTU, expressed concern over Williams’ admission, stating, “Given the billions the bank has invested in IT over the years, it’s astonishing and deeply worrying for a senior executive to acknowledge that the current on-premise IT infrastructure ‘is not fit for purpose.’ However, he should be commended for his honesty. The question Mr. Nunn needs to answer is how much the bank is willing to invest to bring its IT infrastructure up to standard.”
In response to these concerns, Lloyds stated, “We continue to modernise our technology infrastructure to maintain our leading position in the UK market and ensure cost leadership in an increasingly competitive environment. This effort aims to enhance agility and responsiveness to customer trends while supporting our broader strategic priorities around customer services, products, and operational efficiency.”