- LIBOR priorities and milestones for 2020 outlined
- EBA report identifies key challenges in the roll out of Big Data and Advanced Analytics
- Banco Sabadell and IBM Services announce the signing of a ten-year services agreement designed to help the bank boost digitisation
- Carney appointed as the Prime Minister’s Finance Adviser for COP26(UN Climate Change Conference)
- Moneyfacts says that a real return on cash savings remains under threat
- Moneyfacts releases Star Ratings for SIPP and SSAS products
- Citigroup fourth quarter net income up expired
- MasterCard direct-to-mobile wallet launched in partnership with CleverCards and EML expired
- NatWest to provide Esme Loans and Rapid Cash lending services direct to users of pre-paid company card Soldo expired
- Specialized payments platform Paysafe launches Paysafecash in Cyprus expired
- PayPoint renews exclusive deal with Monzo to provide cash deposit solutions for its account holders expired
- Pockit launches new card design for its mobile current account and Pockit Prepaid Mastercard expired
29th November 2019
TSB’s new strategy includes closing 82 branches
TSB’s CEO Debbie Crosbie has outlined the bank’s three-year strategy to restore the Bank’s competitiveness through a relentless focus on better serving its customers. The new purpose-led strategy sets out a transformation programme for the bank to become a simpler organisation to compete effectively, with deeper customer relationships and a better balance of customer channels.
Debbie Crosbie said: "Our new strategy positions TSB to succeed in a challenging external environment at a time when we know customers want something different and better from their bank. With a trusted brand, modern platform, and national presence, TSB is well placed to deliver – but we need to make changes to enable us to compete.
1. Customer focus
• Over c. £120m will be invested to further build on TSB’s digital channels to provide mobile in-app onboarding/sales, as well as investing in the automation of some of the bank’s branches.
• Refresh its existing lending products to provide new lending offerings. All of the bank’s retail lending will be supported for the first time by new customer level decisioning/underwriting criteria.
• Continue to invest in providing industry-leading solutions that genuinely matter to customers.
• Reshape the size of its branch network to ensure it meets the changing needs of customers. TSB will also invest in self-service in branches and flagship branches. During 2020, TSB will close 82 branches, reducing its branch network from 540 to 454.
• Maintain a geographically dispersed branch network.
• Continue to invest in its business banking offer.
2. Simplification and efficiency
• Deliver enhanced functionality on TSB’s new mobile platform.
• Leverage open banking and the right third-party relationships to improve TSB’s unique offering to customers, encouraging innovation and collaboration with Fintechs and leading product providers.
• Customer journeys will be transformed to make it simpler and easier for customers to do business with TSB using digital-led propositions and data-enriched experiences.
• Give customers the ability to complete transactions themselves in real time, expecting that by 2022 more than 90 per cent of transactions will be self-service.
• A digital led approach will mean three quarters of TSB’s customers will be digitally active over the next three years.
• Streamline head office functions and remove duplication. New ways of working will be introduced to empower employees to work in an agile way.
3. Operational Excellence
• Putting in place an operational framework that will enable the Bank to transition to a more competitive Bank that delivers efficiency through a strategy.
• Conduct risk for all customer banking experiences, both business and retail, will be managed by the TSB Customer Banking Director and operational risk under the Chief Operating Officer.
• Transition away from a diverse range of suppliers managed on its behalf by Sabis to take direct control in the UK with clear accountability by its Chief Operating Officer.
• IT transformation programme focused on stability and cybersecurity.
• Strong underwriting principles will underscore product and service development.
• Prudent capital and liquidity management.
The key financial outcomes delivered by the strategy (2019-2022) are as follows:
• TSB will deliver net cost efficiencies, after absorbing the impacts of amortisation from investment, of around £100m, which will also drive an anticipated improvement of 15 percentage points in its cost-to-income ratio.
• TSB will continue to grow and diversify its lending book with c.5 per cent net lending growth per annum.
• Over the course of the plan to 2022, TSB will incur branch and restructuring charges of around £180m.
• In 2022, it expects profits to improve from the current broadly breakeven position in 2019 to a profit after tax of around £130m - £140m in 2022. At these levels, TSB’s underlying Return on Equity will be around 7 per cent.
• TSB has a robust funding plan to support growth while maintaining a low cost of funds and a strong liquidity position.