Lloyds Banking Group, a company with 30 million customers under several brands including Lloyds Bank, Bank of Scotland, and Halifax, has put forth additional cost-saving measures to help the company weather poor economic conditions and better meet customer expectations. On top of the 9,000 jobs and 200 retail branches the bank outlined to eliminate in 2014, Lloyds decided it was necessary to trim another 3,000 jobs and 200 branches.
While most banks continue operating through an omni-channel strategy, it’s no secret that the number of consumers who walk into a brick and mortar establishment is dwindling thanks to the convenience of digital channels. According to an article in Financial Times, Lloyds indicated that bank transactions went down 15% year over year.
Cost-saving initiatives and the move towards mobile remain at the top of the list of priorities for financial services institutions.
Similarly, ING issued an update on its strategy, which focuses on the ongoing transformation of the large global financial institution. Between 2016 and 2021, the company intends to spend close to $900 million to enhance the customer experience, boost innovation, and become more efficient, all while reducing costs for years to come.
Much of ING’s plans focus on digital transformation, enabling customers to do more business via digital devices. Even though ING operates in numerous countries, it realizes that most of its customers are increasingly carrying out their banking activities on mobile devices.
In order to meet customer expectations in an environment in which low interest rates and high regulatory operating costs continue to cut into profits, ING has put forth a strategy to streamline its operations. This includes working under one value proposition, one strategy, one set of systems, one culture, and one organization.
The consolidation and standardization of ING’s operations, along with more emphasis placed on digital channels and the deployment of technology that will enable the company to better understand its customers and create new offerings, will ultimately help increase revenue and drive down costs. According to the company, the “Accelerating Think Forward” program will drive more than $1 billion in cost savings by 2021.
Financial services companies will continue pouring money into the development of new and better digital offerings.
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