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The bank poured nearly $12 billion into technology as its net income grew nearly 40% in 2024, executives said during a Wednesday earnings call.
The bank’s tech spend surged north of $11 billion in 2022 and reached $12 billion in 2023 before last year’s modest 2% decline. Investments in transformation increased 4% to $2.9 billion in 2023 and remained at that level last year.
The push comes in the wake of what Fraser characterized as decades of historic underinvestment in Citi’s infrastructure and risk and control systems. The urgency was triggered by a 2020 Federal Reserve Board enforcement action tied to poor data quality management and $135.6 million in penalties levied by regulators last year.
“While there are areas that are more advanced, there are others where we still have a lot more work to do, particularly around data and regulatory reporting as last summer's regulatory actions reinforced,” Fraser said. “We have reviewed the entire data program and made changes to its governance and structure as well as increased the level of investment.”
Technology lies at the heart of banking as the industry’s biggest players leverage massive data estates to fuel generative AI initiatives and broader digital transformation.
