UK banks are beginning to rethink their existing operations in a bid to face up to the digital shift, a technology journalist has claimed.

Matthew Finnegan, writing for computerworlduk.com, explained that firms working in the finance sector have moved far slower than other sectors, such as retail, when it comes to adjusting to rapid changes in online, and now mobile, technology. However, the sector remained content.

Now, though, start-ups and technology giants are forcing them to revaluate their processes with an emphasis on automation, Finnegan noted. Lloyds Banking Group recently announced extensive job cuts as processes become automated, while RBS has announced it will invest £1 billion in digital services over the coming years.

“There are clear signs that the big banks are taking the threat seriously,” Finnegan said. “As well as Lloyds, Barclays also announced major cuts to frontline staff last year, pointing to the need to cut its branch network and focus on automation and digital delivery.”

A statement from Lloyds Banking Group said: “We will commence a second phase of simplification and cost efficiency to achieve run-rate savings of £1 billion per annum by the end of 2017, creating value for customers and improving our long-term competitiveness.

“In order to achieve these savings, we will invest around £1.6 billion over three years on initiatives to simplify processes and increase automation,” stockmartketwire.com reported.

Author: Jack Stanton