Lloyds Bank launches AI-driven plan, targeting £2bn cost cuts
Lloyds Banking Group will trim another £2 billion of expenses while rolling out AI-based services as part of a four-year growth strategy.
Lloyds Banking Group announced a four-year initiative that will see £2 billion of costs removed while committing £13 billion to technology and AI investments through 2030. Under chief executive Charlie Nunn, the bank will introduce AI-powered advice for wealth and workplace pensions, deliver tailored offers based on customer behavior, and provide relationship managers with AI-driven support. Nunn highlighted plans to use AI and blockchain to cut mortgage-approval times to roughly three days and to enhance rewards for loyal borrowers.
The strategy also includes a push into corporate and institutional banking in the United States and Europe, marking a shift from the post-crisis retrenchment. A new app will bundle car-loan, insurance and electric-vehicle charging services. Analysts noted the ambition but cautioned that success in new markets is not guaranteed. The announcement coincided with a 14% rise in second-quarter profit, a 1.58p dividend and a £1 billion share buyback, lifting the share price by 1.7%.
Why it matters
The plan could reshape UK banking by leveraging AI for growth while cutting costs, affecting jobs and shareholder returns.
In this story