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Lloyds Banking Group is to spend £1 billion over the next three years on overhauling its technology infrastructure and self-service capabilities.
The long-term strategy, outlined by new chief executive Charlie Nunn, involves porting 20% of its applications to the cloud by 2024 and decommissioning over 15% of legacy applications.
The initiative comes after a leaked video emerged late last year of a senior Lloyds executive complaining about the age of its on-site technology which was deemed “not fit for purpose”.
Nunn says Lloyds wants to increase its digitally active customers by more than 10% by 2024 to in excess of 20 million, by adopting an agile software delivery method and using data and analytics to deliver personalised engagement, offers and pricing. The bank currently boasts 26 million “customer relationships” and more than 18 million digitally active users
Digital capabilities will be applied to the creation of an offering for mass-affluent customers with over £75,000 in liquid assets, and the expansion of its SME proposition through merchant services, trade, cashflow lending, and broader, value added services like supporting SME transition to net zero.
In terms of cost savings, Lloyds is looking to reduce “central functions and office overheads” through a combination of automation, process simplification and a move to hybrid working aimed at cutting the company’s office footprint by 30% by 2024.
Financial Services
