Lloyds Banking Group plc (LYG) November 2025 Capital Markets Day Transcript

to deliver value that share the same objectives, where the business is leading on what we are supposed to do to deliver on a strategy, and the tech people worry about how to deliver this. And a very good example, what benefits this delivers, this platform, is one of the most complex products to introduce in a bank. It is connected to literally everything, To the lending domain for overdrafts, to payments, obviously, to the customer well-being or arrears management platform, your channels, both colleague channels as well as digital, it ships data to marketing, risk and finance. So it's probably the most connected product. And we delivered a fully new proposition just within five months, where if we look back to previous introductions this would have taken us arguably in between 12 and 18 months and I think 12 is on the more optimistic side of the spectrum. And next to the pace, the platform model does help us reduce the cost to deliver. In growth savings we have saved over 300 million annually so far which if reinvested adds only to additional capacity to further accelerate our change. Now, this is the effort, right? This is what we have done. The question is, what does that actually deliver for our customers? Up in the right quadrant at somewhere number five, six, or seven. Close to ING, by the way. That's no coincidence. Yeah, it's slightly ahead, Charlie. That's what you get. In terms of engagement, we are now driving over 13 million fully personalized engagements a day. Just imagine that by sending out 20 million notifications that customers react to. In terms of sales, the channel share for sales has gone up 20 basis points from 55% in 21 to now over 75% of all of our product sales go through the mobile app, which is a huge impact. And in terms of our impact for customers, we are now embedding AI, which makes their interaction with the mobile app even more engaging. It feels more natural because you can simply talk and it feels you talk to a person that gives you relevant answers, which is arguably a more intuitive and natural way of interaction than just clicking on buttons, going through forms and dialogues. Now, let me give you one example that I'm really proud of. In only eight weeks, or we express this in sprints of two weeks, but let's say for normal people, eight weeks, we fully redefined our onboarding for new customers. So from downloading the app to having a personal account that is actually reachable. You can fund it and you can withdraw money. You have your card in your wallet, your virtual card, in literally seven minutes. Just imagine, right? If you would start this onboarding right now, which I'm sure you will all do. You're eager to open an account with Lloyd's, I'm sure. you would be done before I'm actually done with my presentation. And this is on par level with our competitors in the market, in particular the neobanks. And the impact of this, again, for the bank, the value is huge. Where only two years ago, 20% of all the personal current accounts openings were done through the mobile app, that has increased to 90% today and still counting. So where we talked about the impact on just one channel, the mobile app, the question obviously is, do all these investments actually scale? Is there leverage to it? And the answer is yes. And let me talk you through this in three kind of examples. The first one is that digital platform that I was alluding to, which is the basis of the successful mobile app. We are reusing this across the group for BCB, for IP&I in the Scottish Widows app, which is built on the same digital platform, now scaling from 0.7 million customers this year to 1.5 million, which is our ambition next year. Again, using the same platform. Second example is our business current account. I just told you about the beautiful story of onboarding in literally minutes in the business banking account this has reduced the time to onboard from an amazing 30 days to now two days and two days is still not where we want to be but it's just an example of reusing the same investments that we did for consumers is paying off in the business banking domain as well. Another example is in the domain of AI where relationship managers for real estate finance that need to capture these very complex tenancy schemes that they need to kind of take from all kind of documents which normally takes them hours to do it's tedious work and it's administrative work obviously distracting them from interacting with customers by implementing our generic AI capabilities has brought that down to less than five.