Annual Report and Accounts 2017

2017 Highlights

A word from our CEO

Our next chapter

Transforming the Group for success in a digital world

Our new strategy will enable us to seize new opportunities by building on our existing competitive advantages. The transformation planned will ensure we become a digitised, simple, low risk, customer focused, UK financial services provider.

Strategic priorities 2018 - 2020

Leading cusotmer experience

Why this is important

In order to be the best bank for customers, we recognise that we must continue to adapt to changes in customer behaviour, technology-driven competition and regulation. Our propositions must be reflective of heightened customer expectations for ease of access, personalisation and relevance, as well as the needs created by changing life patterns.

Key objectives for 2020

To achieve our aim of being best bank for customers, we will deliver best-in-class propositions while continuing to provide our customers with brilliant servicing and a seamless experience across all our channels.
- Remain number 1 UK digital bank with open banking functionality
- Unrivalled reach with UK’s largest branch network, serving complex needs
- Data-driven and personalised customer propositions

 Digitising the Group

Why this is important

Our market leading cost position and customer franchise are sources of competitive advantage. However, we must not be complacent and must further digitise the Group to drive additional operational efficiencies, improve the experience of our customers and colleagues and allow us to invest more for the future. In addition, we must continue to simplify and progressively transform our IT architecture in order to use data more efficiently, enhance our multi‑channel customer engagement and create a scalable and resilient infrastructure.

Key objectives for 2020

By digitising the Group, we are expecting to transform our cost base as well as the experience of our customers and colleagues.
- Deeper end-to-end transformation targeting 70 per cent of our cost base
- Simplification and progressive modernisation of our data and IT infrastructure
- Technology enabled productivity improvements across the business

Maximising group capabilities

Why this is important

To better address our customers’ banking and insurance needs as an integrated financial services provider and improve their overall experience, we will make better use of our competitive Group strengths and unique business model.  

Key objectives for 2020

By maximising the Group’s capabilities and sources of competitive advantage more effectively, we expect to deepen customer relationships and grow in targeted segments.
- +£50 billion financial planning and retirement open book assets under administration growth
- >1 million new pensions customers
- +£6 billion of additional net lending to start-ups, SMEs and Mid Markets

Transforming ways of working

Why this is important

Our colleagues are crucial to the success of our business. In order to deliver our transformation over the next three years, and beyond, our colleagues will require new skills and capabilities to reflect the changing needs of the business as it adapts to the evolving operating environment. At the same time, colleague expectations of their employers are changing. As a result, we must devise solutions to continue to attract, develop and retain these skills and capabilities, while fostering a culture that supports a way of working that is agile, trust-based and reinforces the Group’s values.

Key objectives for 2020

We are making our biggest ever investment in people and by transforming our ways of working, we are aiming to achieve a culture of inclusiveness and collaboration, while also upskilling our colleagues for future needs and new career paths.
- 50 per cent increase in training and development to 4.4 million hours per annum
- Up to 30 per cent change efficiency improvement

Doing business responsibly