{"id":566813,"date":"2026-07-30T12:06:10","date_gmt":"2026-07-30T12:06:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/566813\/"},"modified":"2026-07-30T12:06:10","modified_gmt":"2026-07-30T12:06:10","slug":"lloyds-bank-to-cut-2bn-in-costs-as-part-of-ai-powered-strategy-lloyds-banking-group","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/566813\/","title":{"rendered":"Lloyds Bank to cut \u00a32bn in costs as part of AI-powered strategy | Lloyds Banking Group"},"content":{"rendered":"

Lloyds Banking Group will cut another \u00a32bn of costs as part of a four-year plan under which its chief executive will use new tech and AI to drive growth.<\/p>\n

Charlie Nunn said the strategy, which the UK\u2019s largest high street lender will launch in January, would involve investing \u00a313bn into the business by 2030, including for \u201cpioneering technology\u201d to lure new business, improve efficiency and increase payouts for shareholders.<\/p>\n

That will involve rolling out \u201cAI-powered advice\u201d for wealth and workplace pensions, and using it to offer personalised offers based on customer behaviour, and give \u201csupport and guidance\u201d to relationship managers, who are assigned to specific accounts.<\/p>\n

While Nunn praised colleagues for guiding customers through \u201cincreasingly complex services, he said \u201cwe can make it even better, and even simpler, because we\u2019re not good enough today, relative to our ambition\u201d.<\/p>\n

When asked how staff would be affected by \u00a32bn in planned cuts, Nunn said he would consider all the same business areas that were in the bank\u2019s crosshairs over the past five years, including better technology, reviewing physical office space and \u201cimproving our ability to increase productivity\u201d, without giving details of any potential job losses.<\/p>\n

\u201cSo, when we look to this next stage, those kind of levers will continue in front of us,\u201d he told journalists on Thursday. \u201cAnd we do think that there are new opportunities for agentic AI to both differentiate our services and grow more efficiently: IE provide services we\u2019ve never been able to provide.<\/p>\n

\u201cThat is going to impact work. It is going to require us to continue to re-skill people and hire new people<\/a>, but that\u2019s been my history for 30-odd years in financial services.\u201d<\/p>\n

As for the future of Lloyds\u2019s 550 branches, Nunn said: \u201cIt will be important part of our proposition, but we\u2019re going to follow the customers and our customer data around our branches.\u201d<\/p>\n

The strategy also pointed to international expansion, with Lloyds aiming to grow its corporate and institutional bank in the US and Europe, marking a big shift from the retrenchment that followed the lender\u2019s bailout at the height of the 2008 financial crisis.<\/p>\n

Nunn said he was also betting on AI and blockchain technology to cut waiting times for mortgage approvals to about three days; the bank would also boost rewards and loan discounts to retain loyal customers.<\/p>\n

Lloyds will double down on its car loan division, which is still waiting to settle the long-running motor finance commission scandal<\/a>, by creating a one-stop-shop app for drivers wanting to buy, insure and set up charging points for electric vehicles.<\/p>\n

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Chris Beauchamp, the chief market analyst at the investing and trading platform IG, said: \u201cNunn\u2019s strategy to move away from the traditional lending business continues to deliver for Lloyds, though it is still a work in progress.<\/p>\n

\u201cThe push towards the US and more corporate banking is understandable, but Lloyds would hardly be the first UK name to follow this demanding path \u2013 success here is far from guaranteed. Lloyds has the heft in its home market, but a move to a bigger global player is a significant undertaking.\u201d<\/p>\n

It came as the bank reported better-than-expected second-quarter profits, which rose to \u00a32.3bn between April and June, a 14% jump from the same period last year. It meant bosses could increase payouts for shareholders, with a 1.58p a share dividend and the first ever share buyback announced at half-year, worth \u00a31bn.<\/p>\n

Lloyds\u2019s share price rose 1.7% in response to the news on Thursday morning.<\/p>\n","protected":false},"excerpt":{"rendered":"Lloyds Banking Group will cut another \u00a32bn of costs as part of a four-year plan under which its…\n","protected":false},"author":2,"featured_media":566814,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":["post-566813","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-il","tag-israel","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/566813","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=566813"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/566813\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/566814"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=566813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=566813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=566813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}