Lloyds Banking Group has announced a new four-year strategy to cut £2bn in costs, with chief executive Charlie Nunn stating the plan will utilise new technology and artificial intelligence (AI) to drive growth. The UK's largest high street lender will launch the strategy in January, involving a £13bn investment into the business by 2030.
The investment will focus on "pioneering technology" to attract new business, enhance efficiency, and increase shareholder payouts. This includes rolling out "AI-powered advice" for wealth and workplace pensions, offering personalised customer offers, and providing "support and guidance" to relationship managers.
Mr Nunn indicated that the planned cuts would involve reviewing business areas such as technology and physical office space, and improving productivity, but did not provide details on potential job losses. He also noted that AI is expected to impact work, requiring re-skilling and new hires.
The strategy also outlines international expansion, with Lloyds aiming to grow its corporate and institutional bank in the US and Europe. Additionally, the bank plans to use AI and blockchain technology to reduce mortgage approval waiting times to approximately three days and will boost rewards for loyal customers.
The announcement follows Lloyds reporting better-than-expected second-quarter profits of £2.3bn between April and June, a 14% increase from the previous year. This led to a 1.58p a share dividend and a £1bn share buyback, the first ever announced at half-year.