Our business model
Helping Britain prosper and becoming the best bank for customers, colleagues and shareholders
Helping Britain Prosper
Given our focus on the UK, our success is interwoven with the UK’s prosperity. We aim to Help Britain Prosper through creating a responsible business that focuses on customers’ needs, and delivering long-term sustainable success for shareholders.
Our core values underpin our purpose to Help Britain Prosper
Ensuring we create the right environment for our colleagues to deliver our aim to become the best bank for customers, colleagues and shareholders
- Putting customers first
- Keeping it simple
- Making a difference together
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.
The Group has a unique customer proposition enabling us to serve the financial needs of our customers in one place. We operate multiple brands through three core divisions; Retail, Commercial Banking and Insurance and Wealth.
We are a simple, low-risk, customer focused UK financial services provider with distinctive and sustainable competitive strengths...
Multi-brand, multi-channel customer proposition with data driven customer experience
Operating in an integrated way through a range of distribution channels and brands ensures our customers can interact with us when and how they want and enables us to address the needs of different customer segments more effectively.
Comprehensive product range with all financial needs served in one place
Our product range is driven by customer needs and is informed through comprehensive customer analysis and insight.
UK’s largest digital bank, branch network and customer franchise with leading integrated propositions
Our scale and reach across the UK means that our franchise extends to around 26 million customers, with 16.4 million digitally active customers. We are uniquely positioned to deal with customers' banking and investment needs.
Market leading efficiency through tech-enabled productivity improvements
Our simpler operating model and focus on efficiency provide a cost advantage, enabling us to invest more to the benefit of both customers and shareholders.
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 quality of our loan portfolio and underwriting criteria. Our financial strength has been transformed in recent years with our capital position is strong.
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.
Creating competitive advantages
We believe that these capabilities provide competitive advantage and enable us to continue to deliver for customers whilst also delivering sustainable and superior returns over the longer term, as outlined below.
Risks to our business model
As a large, UK focused financial services provider we face several external and internal challenges
The main external challenges we face are discussed on our external environment page – link to page:
- Uncertain outlook for the UK economy
- Evolving customer needs and behaviours
- High levels of regulation
- Radically changing competitive and regulatory landscape
- Technologies and societal attitudes rapidly reshaping business model
We also face a number of internal challenges
- Operating as efficiently as possible, while remaining the best bank for customers
- Attracting, developing and retaining the best talent to respond to new ways of working
- Ensuring IT systems are effective and resilient and that we are prepared for the threat of cyber risk
We recognise these challenges and continue to evolve our business model and strategy, to enhance their sustainability over the longer term.