business model and strategy

Helping Britain prosper and becoming the best bank for customers, colleagues and shareholders


Our business model

As a UK focused bank we are well placed to help Britain prosper, delivering for customers, shareholders and the wider society. Our differentiated business model gives us competitive advantage, enabling us to continue to meet our customers’ evolving needs and deliver best-in-class customer experience.

What makes us different

The successful transformation of our business since 2011 has resulted in a number of distinctive competitive strengths.

Low risk business and strong capital position

Our prudent, low risk participation choices and strong capital position reduce the Group’s earnings volatility and provide stability.

UK focus

Our UK focus means we operate in a single, AA-rated market that we truly understand while avoiding multi-jurisdictional complexities and costs. We are also committed to supporting the people, businesses and communities of the UK through our Helping Britain Prosper Plan.

Market-leading efficiency

Our simple model provides a cost advantage which benefits customers and shareholders alike.

Multi-brand proposition

Offering our services through a number of iconic brands enables us to address the needs of different customer segments more effectively.

Multi-channel approach

Our multi-channel distribution approach, including the UK’s largest digital bank and branch network, allows customers to interact with us when and how they want.

Largest digital bank

We have built the largest digital bank in the UK, with more than 13m digitally active customers and 9m mobile customers benefiting from our best-in-class customer experience.

Skilled and engaged people

Our colleagues are our real competitive advantage. Their hard work and expertise are instrumental to deliver on our commitment to be the best bank for customers and we will continue to invest in their skills and capabilities.

Operating responsibly

A sustainable and responsible approach to doing business is integral to everything we do.

Our strategy

Over the last six years we have successfully transformed the Group, restructuring and simplifying the business whilst enhancing customer experience, Helping Britain prosper and significantly increasing shareholder returns.

As we look ahead, changes in the external environment and evolving customer behaviour and expectations are creating significant opportunities that our customer focused business is uniquely positioned to capture. The next phase of our strategy will enhance our existing competitive strengths and create new capabilities, enabling us to respond to these changes and transform the Group for success in the digital world.

This will be achieved through four key strategic priorities: continuing to deliver a leading customer experience; digitising the Group; maximising Group capabilities; and transforming ways of working.

Delivering a leading customer experience

We will continue to deliver a leading customer experience by enhancing our digital capabilities, using data to deliver more personalised customer propositions and providing our customers with ease and convenience of access through our multi-channel model.

Digitising the Group

We will maintain our market-leading efficiency by transforming more customer and colleague journeys end-to-end, while also simplifying and progressively modernising our data and IT architecture.

Maximising Group capabilities

We will maximise Group capabilities to address customers’ evolving needs as the sole UK integrated banking and insurance provider, and achieve growth in a number of targeted segments.

Transforming ways of working

The hard work, commitment and expertise of our colleagues have enabled us to deliver to date. Looking ahead, we will be making our biggest ever investment in our people to equip them with the right skills and capabilities for the future and will transform our ways of working so that we can drive even better customer outcomes.