Citigroup’s plan to radically reduce its dependence on outside IT contractors and rely more on an internal team comes as the lender grapples with regulatory punishments over data governance and attempts to strengthen controls. And it could be followed by others.
In recent weeks, Tim Ryan, Citigroup’s new head of technology who joined from PwC in June, informed staff the company intends to slash external contractors to 20% of the IT staff from the current 50%, according to an internal presentation obtained by Reuters, which first reported on the changes Thursday. Citi will hire more staff internally, with a goal of 50,000 employees in tech, up from 48,000 in 2024. The briefing did not provide precise timing for the overhaul.
The lender is also considering a reduction in external suppliers to 50 from 144, according to the internal briefing. As part of the overhaul, Citi will relocate its IT team from Rutherford, N.J., to a single site in Jersey City, N.J., this year. The bank will maintain other operations in Rutherford.
“Citi is growing our internal technology capabilities to support our strategy to improve safety and soundness, enable revenue growth and drive efficiencies,” Citi said in a statement to Reuters.
One example cited in the internal presentation was a $22.9 million “recent fraud event” linked to the work of external contractors.
“In the rare instances that we detect any fraudulent activity, whether internally or by a vendor, we take immediate action to hold those responsible accountable for their actions,” Citi said in the presentation, which was viewed by Reuters. In September, the company warned employees about fraud and unethical behavior that could result in using fewer contractors, the news agency reported.
Indeed, Citigroup’s internal IT gambit could be echoed by other companies concerned with stiff regulatory penalties related to risk management and data governance, IT experts said.
The bank’s IT reboot isn’t entirely surprising. Ryan joined shortly before Citigroup was fined $136 million by regulators for not making enough progress on longstanding data-management issues.
In January, Citigroup Chief Financial Officer Mark Mason said the bank, which earned $12.7 billion last year, is spending more to address IT issues to address data governance shortcomings, a move that contributed to the company lowering its profitability targets for 2026.
