NEW YORK— Citigroup is deploying artificial intelligence to accelerate account openings and modernize legacy technology systems as part of a broader push to improve productivity, the bank’s head of technology said.
Tim Ryan, who oversees technology at the bank, said AI is helping automate coding, testing and data migration from older systems, allowing the company to streamline operations more quickly.
“We still have legacy systems, but after the tech investments we’ve made, we are in a much better place,” Ryan said in an interview with Reuters. “AI helps migrate data from legacy systems, automate coding and test more and faster.”
The technology is also improving customer onboarding. A document-processing system has reduced the time needed to review materials before opening an account in the U.S. services division to about 15 minutes, down from roughly an hour, Ryan said.
U.S. banks are increasingly adopting AI tools to boost efficiency amid what many view as the most significant technological shift since the rise of the internet, Reuters reported. In some cases, the technology is also being used to reduce costs, including labor expenses.
Seeking to Reduce Reliance on Contractors
Ryan, who joined Citigroup from PwC less than two years ago, is also leading an effort to reduce the bank’s reliance on external contractors in favor of expanding its internal workforce.
According to Reuters, Citigroup previously said contractors made up about half of its technology workforce and aimed to reduce that share to 20%. Ryan said the bank is now about halfway toward that goal.
The lender has hired more software engineers and now employs roughly 50,000 technology workers. The strategy is intended to support increased investment in AI development and ensure consistent deployment of AI tools across the organization.
Significant Spending Increase
Citigroup has significantly boosted technology spending in recent years, partly in response to regulatory requirements. The bank remains under consent orders issued in 2020 by the Federal Reserve and the Office of the Comptroller of the Currency, which directed it to improve risk management controls and address data governance issues.
As part of its AI rollout, the bank is targeting key internal processes for automation. Among the first 50 processes under review are client and employee onboarding and certain “know your customer” compliance functions, Reuters reported.
