Lloyds Banks on Technology in 2020 Strategy

Nexis, Research Solutions, LexisNexis BIS

Lloyd bank intends to use technology like digital analytics and artificial intelligence to gain potential and new insights. They have set 3-year strategy to digitize the group. This digitization basically transforms crucial parts of the business. Their strategy reflects the point that Artificial intelligence and big data is needed for the success of the financial firms.

Digital Transformation

Lloyd bank is splashing or investing £3 in technology and digital transformation. Their business model is customer-focused and is subject to low risk. In order to achieve the objective, the bank group has announced that it is cutting over 6000 existing positions while introducing 8000 new jobs that are oriented towards digital technologies. In order to support the change, they are planning to increase training and development by 50% in the year 2020. Lloyd is not the only bank who is implementing this cost-saving strategy as myriad of other banks has also implemented same strategy to fetch the business goals. According to them, this strategy increases efficiency by 30% in 2020.

This is a 68-page presentation in which Lloyd bank has brought plenty of new and effective ways to exploit new opportunities into limelight. All and all, the bank wants to digitize everything with the sole purpose to improve customer’s experience. In addition to this, Lloyd is planning to use voice biometrics to reduce the manual compliance efforts by 20%. According to Lloyd, deploying new technologies to drive operational efficiencies will definitely make banking simple and easy for customers whilst eliminating operational cost. They said that the investment of £3 billion will be used to create digitized bank with progressive modernization and state of the art infrastructure.

Lloyd Bank on Data-Driven Concepts

The strategic 2018-20 plan of Lloyd Bank reveals that AI and big data are the most important tools of financial firms. More and more banks are now heading towards this data-driven insight approach. Deutsche Bank has launched new enterprise analytics to study and analyze lines of data on securities transactions in order to find out opportunities for the bank as well as for customers. Earlier, HSBC announced the recruitment of 1,000 data scientists so as to develop its digital strategy effectively. According to the latest study by SNS Telecom & IT, it is possible that financial services firms will invest $9 billion in big data this year and $14 billion in 2021, which is quite surprising.

But it is important to note that the value of big data is not just restricted to the financial firms as manufacturing and academic sectors are also using the same to study plenty of research papers. Artificial Intelligence is now using by several media outlets such as Xinhua and the Washington Post to create new concepts and ideas.

Data as a service is complimenting internal data sources as well

Companies, nowadays, keep a strong eye on the data about their customers so as to carry out operations without relying on anyone. However, this data itself is not enough to create insights as companies will have to use external sources as well to get an additional context. Lloyd has the data of transactions of about tens of millions of customers which help then in getting deeper insights which can be applied in the operations carried out them.