On Wednesday the Lloyds Bank announced that billions of pounds would be spent on improvements to its infrastructure and online services over a three year period. A spokesman for the bank said that Lloyds wants to become a “digitised, simple, low risk, customer focused, UK financial services provider” by implanting an ambitious Digital Transformation programme.

This news comes just two weeks after Lloyds announced plans to cut over 200 positions from its existing IT team, this in addition to further personnel cuts affecting its wealth, commercial and community banking, risk, insurance & wealth departments.

The spokesman added: “Where it is necessary for employees to leave the company, we will look to achieve this by offering voluntary redundancy. Compulsory redundancies will always be a last resort.”

Lloyds to Increase Investment

Despite the cuts, the bank has pledged to increase investment in technology saying it wants to use IT systems as part of operational efficiencies and data-driven initiatives. Compared with previous years, the £3 billion investment represents a 40% increase, and Lloyds have outlined the mobile and online channels as capitalised areas.

The new technology plan is part of a wider company intention to cut operational spending to around £8bn by 2020. Lloyds Group Chief Executive António Horta-Osório said: “As we look to the future, we see the external environment evolving rapidly. Changing customer behaviours, the pace of technological evolution and changes in regulation all present opportunities.”

“Given our strong capabilities and the significant progress made in recent years, we believe we are in a unique position to compete and win in this environment by developing additional competitive advantages.”

He did, however, decline to discuss the job losses, adding: “We will continue to transform ourselves to succeed in this digital world and the next phase of our strategy will ensure we have the capabilities to deliver future success.”