Citizens Financial Group will continue to modernize its cloud-based digital platforms and move away from internal applications in 2023 following last year’s cloud migration efforts.

WHY IT MATTERS: In 2022, the $225 billion Citizens moved its direct-to-consumer digital platform Citizens Access to a cloud-based platform and will continue to take to the cloud through its newly launched TOP 8 program, which focuses operations on enterprise, business and technology initiatives, according to the bank’s earnings presentation.

The bank is moving to the cloud to “offer a complete digital bank experience to serve customers nationwide with a focus on the young, mass affluent market segment,” Chief Financial Officer John Woods said during today’s Q4 earnings call.

BY THE NUMBERS: Citizens posted for Q4:

• Total revenue grew 29% YoY to $2.2 billion;
• Noninterest expenses increased 20% YoY to $1.2 billion; and
• Equipment and software expenses increased 16% YoY to $170 million.

NOTEWORTHY: Today, the bank announced TOP 8, which will prioritize the following technology enhancements in 2023:

• Infrastructure updates to data center closures, migration to the cloud, network transformation and organization rationalization;
• Standardize applications and technology platforms; and
• Converge legacy platform to modern banking platforms.

FLASHBACK: Citizens is also looking to build on its point-of-sale offering Citizens Pay, which first launched in 2021, according to a Citizens release.

“Citizens Pay, for example, is an area where we have significant running room,” Woods said. “We’ve attracted many new partners, about 150 versus a year ago, which should really ramp that business.”

FUTURE LOOK: Between 2023 and 2025 the bank plans to introduce digital checking and credit cards, enhance digital platform capabilities, and converge its legacy core with Citizens Access to create a single integrated platform, according to the earnings presentation.

“We’re working toward a data center exit in 2025,” Woods said. “There’s a lot of strategic initiatives that are built within the TOP 8 program.”

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