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UK based Lloyds has announced that will go ahead and cut9000 jobs and 150 branches as the banking group reorganizes its prioritiesaround the digital channel. As part ofthis shift, Lloyds announced that it will spend £1 ($1.61) billion on improvingdigital channels over the next three years.
Commenting on the news as the banking group seeks to lowerits cost to income ratio to about 45% by 2017, Lloyds Group chief executive, AntónioHorta-Osório said, “Over the next three years, our focus will be to adapt tothe changes in financial services brought about by shifts in technology,changing customer behavior as well as the evolving competitive and regulatoryenvironment. We are committed to ensure that over 90% of Lloyds and Bank ofScotland customers will continue to have a branch within five miles of theirhome while the Halifax branch network will be maintained.”
According to the British Bankers’ Association, branchtransactions are expected to fall by 10% a year for the near future so theannouncement by Lloyds highlights that leading banks are adapting to the newretail banking and customer interaction landscape. While the case can be madethat some banks have made the move too late to embrace the digital channel,it’s better to be late than never.
Overview by Tristan Hugo-Webb, Associate Director, International Advisory Service for Mercator Advisory Group
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