A senior Lloyds banker cautioned that his existing technology on the site “is not fit for purpose” during a recorded internal meeting acquired by the Mail on Sunday. This technology contains the vast majority of the bank’s data and services.
Nick Williams, group transformation director at Lloyds, was answering employee questions during the call. Mail on Sunday reported that Lloyds has an internal project codenamed Voyager, tasked with updating its previous cloud technology.
In the video, Williams can be heard commenting on his software ‘on premises’ (software that is not in the cloud), stating: “The bottom line is ours. [premises] The current capacity is not adequate for its purpose.
“So we have to fix that problem as well. We need to move them forward. The age of our heritage is a real concern. “
In addition, he commented that “99%” of Lloyds data and services are hosted on the bank’s own servers. However, a source close to the bank reports that Lloyds technology is still robust and reports one of the lowest levels of outages.
Williams continued: “To progressively move forward and modernize and simplify what we are doing, we have to move to more modern architecture. That’s not just a case of we’re going to buy new hardware. A lot of the reasons we’re still stuck with outdated infrastructure is because applications don’t work on new hardware, so it’s a collective effort. “
When Charlie Nunn took over as CEO of Lloyds last year, technology was one of the key reasons behind his appointment. Nunn is expected to reveal a new strategy for the bank in February, along with its annual results. This will likely include a technology update.
Mark Brown, general secretary of the BTU union, said: “Given the billions the bank has invested in IT over the years, a senior executive is forced to admit that the current IT infrastructure on the premises of the bank ‘not fit for purpose’ is astonishing and deeply disturbing. But it should be commended for its honesty. The question Mr. Nunn must answer is how much money is the group willing to spend to make its IT infrastructure fit for purpose? “
Lloyds commented: “We continue to modernize our technology infrastructure to maintain our leading UK customer position and cost leadership in an increasingly competitive operating environment. This is intended to deliver greater agility and responsiveness to customer trends, while supporting our broader strategic priorities around customer products and services and operational efficiency. “