Lloyds Banking Group to invest £3 billion in tech
Fri 23 Feb 2018
In response to the release of fourth-quarter financials, showing that the company missed earnings targets, Lloyds Banking Group has made a commitment to cut costs, and has pledged to invest more than £3 billion in technology.
At the press conference in London, Lloyds Banking Group CEO Antonio Horta-Osorio said that the three-year investment was a ‘massive undertaking’, following on the commitment to digital transformation announced several years ago, along with cost and job-cutting initiatives.
“We will continue to transform ourselves to succeed in this digital world,” said Horta-Osorio, “and the next phase of our strategy will ensure we have the capabilities to deliver future success.”
The bank will focus technology investments on improving four aspects of its business: customer experience, digitization, maximizing group capabilities, and transforming work methods.
Lloyds has been hard at work changing the structure of banks and financial services within the group, to create a customer-centric, flexible, modern banking solution. Data centres have been outsourced, branches closed, and employees laid off, in a series of decisions intended to modernize banking solutions, improve customer service and improve the long-term prospects for the company.
While specific technological investment strategies have not been released, Lloyds Banking Group has applied cutting-edge technology to the banking business over the past several years.
Partnering with Google, Lloyds has been using artificial intelligence to help with fraud detection, and big data and machine learning to analyze customer behaviour. It has also deployed intelligent chatbots to improve customer interactions with webchat support.
In an interview with CIO magazine, Marc Lien, director of digital development and applied sciences for Lloyds Banking Group, said that the use of advanced technology like AI, machine learning, and data analytics “will fundamentally change how work is done and decisions are taken in the bank, as well as resulting in an experience for employees and customers that’s much more personalized, relevant and contextual.”
Lloyds also recently stated that it was the first FTSE 100 company to make a public commitment to having women fill 40% of top-level positions, when a 33% gender pay gap was revealed as part of a larger study.