Lloyds Banking Group has unveiled a four-year strategy to cut GBP 2 billion in costs, driven by AI and technology investment.
The UK-based lender's chief executive outlined the plan as part of a broader investment programme running to 2030, though no details on potential job losses were disclosed.
The strategy will involve GBP 13 billion of investment into the business by 2030, covering technology intended to attract new customers, improve operational efficiency, and support shareholder returns. Part of this investment will fund AI-based advice tools for wealth management and workplace pensions, alongside personalised offers based on customer behaviour and additional support for relationship managers handling specific accounts.
Charlie Nunn said the bank would continue to review the same areas targeted in cost-cutting efforts over the past five years, including technology upgrades, office space, and productivity measures. He noted that agentic AI presents opportunities to differentiate services and improve efficiency, adding that this would require reskilling existing staff and hiring new employees, without confirming the scale of any workforce changes. In addition, the bank's network of 550 branches will remain part of its operating model, with decisions on branch presence guided by customer data.
International expansion and mortgage processing
The strategy includes plans to expand the bank's corporate and institutional banking operations in the US and Europe, representing a shift from the retrenchment strategy the bank pursued following its bailout during the 2008 financial crisis. The bank also intends to use AI and blockchain technology to reduce mortgage approval waiting times to approximately three days, alongside expanded rewards and loan discounts for existing customers.
Separately, the bank plans to expand its car loan division through a single application allowing customers to purchase vehicles, arrange insurance, and set up electric vehicle charging. This comes as the division continues to await resolution of an ongoing motor finance commission dispute.
Chris Beauchamp, chief market analyst at trading platform IG, said the shift away from traditional lending had continued to deliver results for Lloyds, though he described the approach as still a work in progress. He noted that expansion into the US and corporate banking follows a path attempted by other UK financial institutions, with outcomes that are not guaranteed given the scale of the undertaking.
