Citigroup plans to increase tech spend and prioritize its digital transformation as it works to reduce headcount through automation, Chief Financial Officer Mark Mason said at a Morgan Stanley conference on Wednesday.

The $2.4 trillion bank is investing specifically in the personnel who will help execute its shift toward an increasingly automated infrastructure. 

“We’ve moved squarely into the execution,” Mason said, noting, “That spend is going to move from consultants … to lean into the technology aspects of that spend book.” 

Citi increased its tech spend by 12% year over in the first quarter of 2023 and added around 8,000 tech-related positions, according to its Q1 earnings report. 

Mason added that bolstering the digital platform will allow the bank to automate many manual tasks and eliminate a significant number of positions. 

As an example, Mason referenced remarks by Chief Executive Jane Fraser at Citi’s April 25 stockholders’ meeting, when she touted the implementation of a common underwriting process for all operations related to wholesale credit. 

“Activity across the entire firm is now run in a standardized and consistent way, eliminating errors and enabling us to more quickly identify risks in our portfolio and act upon them,” Fraser said. 

Homogenizing these kinds of workflows enables the bank to operate more efficiently and cut its headcount as a result, according to Mason. 

“You don’t need thousands and thousands and thousands of people over time because it’s standardized in the approach that we’re able to use,” Mason said, adding that the bank has added a “smart platform” in its markets business and is working on eliminating “legacy platforms.”

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