Lloyds Banking Group has said the migration of core banking systems from its 2008 acquisition of HBOS is ‘progressing well’.
The bank, forty one percent owned by the taxpayer, last month surprised the technology industry by announcing it would lay off 4,500 IT staff, as part of attempts to carve £2 billion from operational costs. The integration of the banks’ various core systems is a major part of the changes.
As Lloyds released its third quarter results and told markets it would deliver a "good financial performance” for the year, it said cost reduction efforts were on track.
The integration programme is “progressing well”, it said in a statement as it confirmed it would hit the savings targets by the end of 2011. At the end of this year, it will have delivered £1.3 billion of the savings.
“We have recently started the migration of the Halifax and Bank of Scotland branches onto the Lloyds counter system,” it said.
“The integration of the core banking systems, including the mortgage sales platform and key banking and savings product platforms, is progressing well and will be complete by the end of 2011.”
Other steps taken in recent months include the introduction of an improved online mortgage application process for brokers, moving to a single “scalable” internet banking platform, and the migration of all HBOS staff data onto the Lloyds TSB human resources platform.
The original Lloyds TSB part of the group extensively uses Oracle Hyperion financial modelling systems, Microsoft SQL Server, the Sun Solaris operating system, Microsoft Windows Server and VMware virtualisation, as well as a number of bespoke systems. It is not clear which systems will be kept.
Lloyds’ job cuts will hit application development and maintenance, service delivery, and enterprise architecture staff, among many other IT functions. They followed on from some 5,700 cuts a year earlier.
Nevertheless, Lloyds director of group operations, Mark Fisher, insisted the group was creating a "world class IT operation".