Standard Bank Ramps Up Digital Transformation with R13.8bn Tech Investment

Standard Bank Group  has reported that its total technology spending reached R13.8 billion in 2025, marking a 9% year-on-year increase as the bank accelerates its transition toward cloud-based infrastructure and modern digital platforms. The investment forms part of a broader strategy to move away from legacy systems and strengthen the bank’s digital banking capabilities across its operations.

The bank’s 2025 annual results show a significant shift in how its IT budget is allocated. Since 2020, spending on cloud infrastructure has increased elevenfold, with 71% of migratable servers now operating in the cloud. At the same time, 88% of legacy servers have been decommissioned, reflecting the bank’s push to modernize its technology stack and adopt more agile, scalable systems.

Software investment has also surged, with spending doubling since 2020. This increased investment has enabled a twofold rise in new features and updates across the bank’s digital platforms, including its mobile banking app and internet banking services. The focus on modern software development is aimed at improving customer experience while accelerating digital product innovation.

In terms of cost management, the bank reported R900 million in savings achieved through infrastructure optimization, including improvements to branch and ATM networks. The continued amortization roll-off of older core banking systems has also helped reduce costs tied to legacy technology.

The bank’s total technology-related operating expenses stood at R13.834 billion in 2025, up from R12.715 billion in 2024. Meanwhile, the amortization of intangible assets declined by 16% to R2.076 billion, reflecting the gradual retirement of older core banking platforms. Workforce composition within the technology division has also evolved, with 73% of technology staff now classified as technical specialists, compared with 54% in 2020.

These investments have had a measurable impact on digital performance. More than 80% of digital product sales are now completed through the bank’s mobile banking app, highlighting strong customer adoption of digital channels. The bank’s revenue-to-total-technology-cost ratio improved to 7.2 times in 2025, up from 5.6 times in 2020, indicating that technology spending is increasingly translating into higher revenue efficiency.

According to the bank, its modernization programme has also delivered improved platform stability and enhanced cybersecurity, which it describes as “market-leading” outcomes of its technology transformation. Looking ahead to 2026, the group plans to continue investing in modern payment infrastructure and artificial intelligence, while maintaining a cost-to-income ratio of around 50% as it seeks to further drive operational efficiency and digital growth.