Tech industry's sluggish advancement spotted by Citi executive as a prime opportunity for innovation
## Citi's Technology Modernization: Progress and Future Plans
In a bid to improve operational efficiency, customer service, and remain competitive in the post-pandemic financial landscape, Citi, under the leadership of CEO Jane Fraser, is undertaking significant technology modernization efforts.
### Progress to Date
Citi has made strides in adopting next-generation AI tools across various departments. The bank has seen a significant increase in the use of AI in customer service platforms such as Agent Assist, which employs AI to enhance client interactions. The bank's IT transformation has also been underway, with Citi allocating $2.4 billion in Q1 2025 for modernization, the retirement of outdated applications, and the integration of AI-driven solutions.
Notable progress has been made in the optimisation, modernisation, and simplification of operations, with the retirement or replacement of 211 legacy applications in the first half of 2025. Enhanced payment controls have been implemented in 85 countries to detect and manage irregular payments, while a strategic loan platform has been rolled out across North America, Asia Pacific, and Europe, the Middle East, and Africa (EMEA), improving loan management processes.
### Future Plans
Citi's future plans centre around advancing AI capabilities. The bank aims to deploy autonomous financial agents through partnerships and innovation, with major AI deployments scheduled between 2025 and 2028. Citi also plans to consolidate its AI initiatives under key leadership, ensuring AI plays a central role in its modernization efforts.
The bank will continue to enhance its digital offerings, such as the Agent Assist program, to improve customer service and offer seamless tech-enabled solutions for high-net-worth clients. Citi is also set to establish centres of excellence for AI governance and risk management, emphasising responsible AI innovation and contributing to regulatory dialogues on AI supervision.
Citi is addressing data quality issues and aims to use these challenges as an opportunity to innovate and leapfrog competitors with the help of partners like Palantir, Google, and Snowflake. The bank is focusing on product capabilities, architecting and connecting them for a better client experience.
Although Citi has only 600 branches in the U.S., these locations are strategically situated in six major markets that make up about 40% of the ultra-high net worth U.S. business.
These efforts are designed to position Citi as a leader in AI-driven banking, leveraging technology to overcome legacy challenges and become more competitive in the financial sector.
- Citi's future plans include consolidating AI initiatives under key leadership, with a focus on advancing AI capabilities by deploying autonomous financial agents and enhancing digital offerings, such as the Agent Assist program, to cater to high-net-worth clients.
- Citi is also planning to establish centers of excellence for AI governance and risk management, emphasizing responsible AI innovation and contributing to regulatory dialogues on AI supervision, all aimed at positioning the bank as a leader in AI-driven banking.
