business model and strategy
Helping Britain prosper and becoming the best bank for customers, colleagues and shareholders
We are a simple, low-risk, customer focused UK financial services provider…
Helping Britain Prosper
Our success is interwoven with the UK’s prosperity and we aim to Help Britain Prosper through creating a responsible business that focuses on customers’ needs, and delivering long-term sustainable success.
Best bank for customers, colleagues and shareholders
Doing the right thing for our customers, colleagues and shareholders by meeting their financial needs, helping them succeed, improving our service proposition and creating value for them, is fundamental to our business model and the long term sustainability of the business.
Our product range is driven by our customers’ needs and is informed through comprehensive customer analysis and insight. Lending Mortgages, credit cards, motor finance, personal and business loans Deposit taking Current accounts and savings accounts Insurance Home insurance, motor insurance and protection Investment Pensions and investment products Commercial financing Term lending, debt capital markets and private equity Risk management Interest rate hedging, currency and liquidity
Our Business Areas
Our business areas are structured according to the products and the services we provide to best serve our customers' financial needs. We currently have three business areas:
Insurance and Wealth
...with several evolving, distinctive competitive strengths...
UK’s largest digital bank, branch reach and customer franchise with leading integrated propositions
Our scale and reach across the UK means that our customer franchise extends to around 26 million customers, with 15.7 million digitally active customers. We are uniquely positioned to deal with customers' banking and investment needs.
Prudent, low risk participation choices with strong capital position
Being low risk is fundamental to our business model. Our low risk appetite is reflected through the low level of non-performing loans and run-off assets, as well as our relative credit default swap spread. Our financial strength has been transformed in recent years with our capital position amongst the strongest in the sector worldwide.
Market leading efficiency through tech-enabled productivity improvements
Our simpler operating model and focus on operational efficiency provide a cost advantage, which benefits both customers and shareholders.
Rigorous execution and management discipline focusing on key skills of the future
Experience of delivering change and transformation in recent years provides benefit as we further transform the business.
Multi-brand, multi-channel customer proposition with data driven customer experience
Operating in an integrated way through a range of distribution channels ensures our customers can interact with us when and how they want.
Offering our services through a number of recognised brands enables us to address the needs of different customer segments more effectively.
...that underpin our clear strategy to transform the Group for success in a digital world...
In February 2018, we launched our new three year strategy to transform the Group for success in a digital world.
We identified four strategic priorities focused on the financial needs and behaviours of the customer of the future and are investing more than £3 billion in these strategic initiatives over the plan period.
Leading customer experience
Driving stronger customer relationships through best-in-class propositions while continuing to provide our customers with brilliant servicing and a seamless experience across all channels.
Maximising the Group's capabilities
Aligning the Group's capabilities as the UK's sole integrated financial services provider to deepen customer relationships and grow in targeted segments.
Digitising the Group
Deploying new technology to improve our efficiency and make banking simpler and easier for customers.
Transforming ways of working
Enhancing colleague skills and processes, investing in agile working practives and embracing new technology to drive better outcomes for customers.