Citi is going through a large-scale transformation, with a focus on overhauling its technology infrastructure and streamlining operational processes. Through simplifying systems, the bank is improving operational efficiency and removing redundancies.
In 2024, Citi successfully retired more than 450 legacy applications, which added to the total of over 1,250 applications retired since 2022. This ambitious effort to eliminate outdated systems is aimed at reducing complexity and aligning technology infrastructure with Citi’s future-forward digital goals.
As a result, Citi is laying the foundation for more agile operations and a leaner tech ecosystem that can better handle growth and innovation.
Citi’s costs drop as tech investments pay dividends
In Q3 2024, Citi reported a 2% reduction in expenses, totaling $13.3 billion for the quarter—a notable drop from $13.4 billion in Q2 2024 and $13.5 billion in the same period last year.
Declining costs is directly tied to the bank’s modernization efforts, which have helped optimize internal processes and remove inefficiencies.
According to CFO Mark Mason, while much work remains, the positive impact of these efforts is already being reflected in Citi’s bottom line. As the bank continues to simplify its operations, further cost savings are anticipated.
Compliance woes ignite Citi’s transformation drive
Citi’s modernization journey initially began as a response to regulatory compliance concerns, especially around data quality and reporting. Legacy systems and fragmented data management practices had put the bank at risk of major compliance failures.
Fines and failures fuel Citi’s radical modernization efforts
In July 2024, Citi was hit with penalties from two major regulatory bodies: a $60.6 million fine from the Federal Reserve Board and a $75 million fine from the Office of the Comptroller of the Currency.
These fines stemmed from Citi’s slow progress in remediating compliance issues outlined in a 2020 enforcement action. The bank’s modernization initiative, therefore, gained momentum as a way to meet these regulatory demands and avoid further sanctions.
Crushing data overload and eliminating legacy tech debt
According to a report from Publicis Sapient, 1,000 senior bank executives were surveyed about key challenges facing the industry. The findings show that data overload and technical debt are still major hurdles for many banks.
Citi’s modernization efforts are designed to address these issues head-on. Through consolidating data systems and retiring outdated applications, Citi is improving compliance while aligning itself with broader industry trends that prioritize streamlined, high-quality data management and efficient tech infrastructure.
CEO Jane Fraser’s vision drives Citi’s strategic transformation
When Jane Fraser took over as CEO in 2021, she expanded Citi’s modernization goals to reach beyond the immediate needs of regulatory compliance. She viewed this transformation as an opportunity to re-engineer the bank’s operations for long-term success.
Fraser highlighted that Citi’s transformation addresses years of underinvestment in technology infrastructure. The bank is reversing this trend by committing greater resources to revamping its tech stack.
Investment here improves day-to-day operations and sets the stage for the bank’s future competitiveness, which is particularly important in an era where agility and robust digital capabilities are key differentiators in the financial services industry.
Strengthening Citi’s framework with better risk and control
Citi’s transformation goes beyond technology updates—focusing on bolstering its risk and control frameworks to support long-term resilience. Through upgrading infrastructure, the bank improves its ability to manage risks more effectively, making sure it remains compliant and competitive.
The strategic overhaul benefits all stakeholders, including customers, investors, and regulators, by providing a stronger operational foundation for future growth.
Cutting-edge cloud moves drive Citi’s efficiency gains
A key part of Citi’s modernization strategy involves migrating workloads to the cloud to drive down costs and improve operational flexibility. The company is reshaping its IT architecture by reducing reliance on physical data centers and leveraging cloud technology.
Citi’s migration to private cloud infrastructure has already produced measurable results, including a reduction in data center costs—enabling the bank to scale more effectively and optimize its storage and computing resources—ultimately leading to superior performance and cost savings.
Cutting cloud onboarding time from weeks to days
Streamlining the process of onboarding applications to the public cloud has been another major win for Citi.
The bank has reduced migration times from over seven weeks to just two weeks.
Faster onboarding times mean that new services and platforms can be deployed more quickly, resulting in more agile operations. Such efficiency gains are key for the company’s ability to respond to market changes and innovate at a faster pace.
Massive tech investments behind Citi’s app retirement blitz
Citi has committed major financial resources to make sure its technology remains competitive and future-proof—helping the bank retire outdated systems and deploy more advanced solutions.
$12 billion tech spend boosts future-ready goals
In 2023, Citi invested $12 billion in technology as part of its broader modernization initiative—used to fund cloud migrations, application modernization, and infrastructure upgrades.
In line with these investments, Citi retired 390 legacy applications in 2023. Combined with the 450 applications retired in 2024, this brings the total to over 1,250 since the start of the modernization drive.
Reducing the number of legacy systems is key to Citi’s strategy, as it lets the bank reduce complexity and increase agility within its IT ecosystem.
Citi’s modernization efforts spark revenue boost in Q3 2024
Citi’s investment in technology and operational efficiency is starting to pay off in terms of financial performance—with the bank’s efforts translating into tangible growth.
In Q3 2024, Citi reported $20.3 billion in revenue, reflecting a 1% increase year-over-year. This growth is directly tied to the efficiencies and savings generated by the bank’s modernization efforts, which have helped Citi operate more leanly and effectively in a competitive market.
The financial benefits of Citi’s modernization push are becoming increasingly clear. Through driving down costs and streamlining operations, Citi is positioning itself for sustained growth.
Combining improved operational efficiency and reduced expenses is resulting in better financial outcomes, which are expected to continue as the bank further advances its transformation agenda.
