business model

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…


Our purpose
 

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.

Our aim

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 Products 

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:

Retail

Commercial Banking

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.

Collection LBG Brands

...enabling us to Help Britain Prosper and deliver for all our stakeholders

Successful implementation of our strategy will ensure we Help Britain Prosper and deliver sustainable success for all stakeholders including customer, colleagues and shareholders.

As a large, UK focused financial services provider we face several external and internal challenges

Key obj - leading - table

External 

The main external challenges we face are:

  • Evolving and uncertain economic environment, including EU exit and uncertainty
  • High levels of regulation
  • Evolving customer needs
  • Responding to technology innovations
  • Managing pressure from increased competition

Internal

We also face a number of internal challenges:

  • Operating as efficiently as possible while remaining the best bank for customers
  • Ensuring we have the right people and culture to meet evolving customer needs
  • Ensuring IT systems are effective and resilient and that we are prepared for the threat of cyber risk