Lloyds Banking Group is reportedly preparing to expand the sale of anonymised customer data and automate internal compliance checks as part of a technology overhaul aimed at cutting IT costs and transforming the lender into what its chief operating officer Ron Van Kemenade has described as “the UK’s biggest FinTech”.

Internal strategy documents reported by the Financial Times show the bank intends to reduce technology spending by 35 per cent this year compared with its 2021 baseline while generating hundreds of millions of pounds in annual savings by 2028. The programme, known internally as Technology Strategy 3.0, forms part of a broader push to modernise infrastructure and reshape the workforce towards technology and data roles.

The plan would expand Lloyds’ existing practice of selling anonymised customer information to external companies. According to documents seen by the Financial Times, the bank believes greater commercial use of its data could help it move “beyond the boundaries of banking” and create new technology-driven revenue streams.

Automation is also expected to play a larger role in compliance and governance processes. Under the proposed changes, many checks that are currently reviewed manually by staff would instead be carried out automatically by systems in real time, although some human oversight would remain.

The overhaul also targets the bank’s technology estate, which executives believe has become overly complex. Lloyds plans to scrap 862 internal applications and close 15 data centres, replacing much of that infrastructure with cloud-based systems as it seeks to reduce maintenance costs and simplify its technology stack.

The transformation comes as traditional banks continue to invest heavily in technology to compete with digital challengers. London-based FinTech Revolut, which has about 70mn customers worldwide, was valued at $75bn last September, while Lloyds has a market capitalisation of roughly £58bn.

The strategy was outlined in a 2025 dossier prepared by chief technology officer Vic Weigler and reviewed by investors. Lloyds has already reported £1.5bn in technology savings between 2021 and 2025 as it rationalised systems and increased in-house development capabilities.

The push forms part of preparations for a new five-year strategy that chief executive Charlie Nunn is expected to present later this year, with plans to expand lending to large corporates and broaden services for financial institutions.

In a statement, Lloyds said it was “transforming our business and accelerating our in-house data and technology capabilities so we can deliver better and more innovative digital experiences for customers”.

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