Over the 4 year period ending in 2030, the bank will invest £13bn (roughly A$24.9 billion), which will go towards efficiency gains, increased shareholder payouts and to attract new business, all as the bank prioritises “pioneering technology,” according to Lloyds CEO Charlie Nunn, as seen by The Guardian.
The bank will roll out a tool for “AI-powered advice” for workplace pensions and wealth, which offer personalised offers based on a customer's behaviour.
While Nunn did not specifically specify how the bank would save the £2 billion, he told media last week that all areas that were previously looked at would be considered, including better technology, weighing up the need for physical office space and “improving our ability to increase productivity.” He did not however specify any details regarding staff cuts.
“So, when we look to this next stage, those kind of levers will continue in front of us,” he added.
“And we do think that there are new opportunities for agentic AI to both differentiate our services and grow more efficiently: IE provide services we’ve never been able to provide.
“That is going to impact work. It is going to require us to continue to re-skill people and hire new people, but that’s been my history for 30-odd years in financial services.”
Speaking on the AI plan, Nunn said that half of the AI move was half “about differentiating and extending what we do for customers into new areas” while the other half is “around helping our colleagues do their tasks more efficiently.
Regarding the banks 550 physical locations, Nunn said that the bank would follow customers and customer data regarding the branches, acknowledging that they are an important part of its services. This comes as the bank looks to close 232 branches this year.
AI and blockchain technology are also being looked at to reduce mortgage approval times down to around 3 days.
Alongside looking at AI, the new 4 year plan also looked at international expansion, with the US and Europe being major targets. Nunn also mentioned boosting benefits and rewards for loyal customers, ramping up its car loan division with an app for buying and insuring cars, and setting up charging points for electric cars.
The push is likely to be met with quite a lot of pressure, with the bank having cut 1,600 roles in early 2024, and mentioned that another 3,000 could be at risk late last year.
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