Lloyds Banking Group is planning a massive £3 billion investment on technology — with a 40% jump in its business transformation budget over last year — ”amid a major outsourcing and cost-cutting program,” according to a report from The Register.
The paper states that key goal for the London-based financial institution, which signed a massive outsourcing deal with IBM last year, is to “deploy new technology to drive additional operational efficiencies that will make banking simple and easier for customers whilst reducing operating costs.”
Along with the investment strategy, branches will begin to close in 2018 as the bank looks to become more digital. Lloyds has previously stated that it will be shuttering locations under the Halifax, Bank of Scotland, and Lloyds brands this year.
This will also lead to jobs cuts. A Bloomberg report suggested that, among the some 1,000 people will be out put out of work, around 250 will come from the IT side of operations.
Staff reportedly learned of the looming job losses in January, according to Bloomberg.
“Where it is necessary for employees to leave the company, we will look to achieve this by offering voluntary redundancy,” said a Lloyds Banking Group representative in a statement. “Compulsory redundancies will always be a last resort.”
(Photo credit: William Murphy)