Citi cutting back on contractors, taking more IT in-house on mounting regulatory pressure

Citi cutting back on contractors, taking more IT in-house on mounting regulatory pressure
The banking giant is undertaking a tech revamp as it addresses longstanding concerns around data risk management.
MAR 13, 2025

Citigroup is planning to significantly reduce its reliance on external IT contractors and expand its internal technology team as part of an effort to strengthen controls and address regulatory concerns.

The bank aims to bring more of its IT operations in-house, with a goal of reducing external contractors from 50 percent of its IT workforce to 20 percent.

Alongside those changes, Citi plans to increase its technology staff from 48,000 in 2024 to 50,000, according to a recent internal presentation viewed by Reuters.

The changes come as the bank works to address regulatory concerns related to risk management and data governance. As noted by Reuters, US regulators slapped Citi with a $135 million last year over longstanding data management shortcomings.

In October, Democratic Senator Elizabeth Warren issued a call to place growth restrictions on the Wall Street giant, calling the firm "too big to manage."

"Citi is growing our internal technology capabilities to support our strategy to improve safety and soundness, enable revenue growth and drive efficiencies," the bank said in a statement to the news outlet.

Tim Ryan, Citigroup’s head of technology, reportedly outlined the IT workforce overhaul in recent weeks, though the company did not specify a timeline for the transition. Ryan, who joined the bank from PwC in June 2023, has been overseeing efforts to improve the bank’s technology infrastructure.

Citi’s internal presentation also referenced a $22.9 million fraud event involving external contractors, highlighting the challenges the bank faces in managing third-party vendors. While part of that amount was tied to legitimate work, according to a source familiar with the matter, Citi did not disclose how much of it was linked to fraud.

"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," the bank said.

The planned changes are also expected to affect Citi’s IT operations geographically. The bank could reduce its current roster of 144 external IT suppliers to 50, according to the presentation.

Additionally, Citi intends to shift more of its workforce to what it considers high-cost locations, such as New Jersey, New York, and Irving, Texas, while reducing reliance on lower-cost hubs like Chennai, India, Belfast, UK, and Warsaw, Poland.

As part of its consolidation strategy, Citi will also relocate its IT team from Rutherford, New Jersey, to a centralized site in Jersey City in 2025. While the bank will maintain other operations in Rutherford, its technology workforce will no longer be based there.

The IT restructuring is the latest in a series of changes Citi has made in response to regulatory scrutiny. Earlier this year, chief financial officer Mark Mason said the bank was increasing investment to address data governance shortcomings, a move that contributed to the company lowering its profitability targets for 2026.

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.