Introduction

In 1765, in Birmingham is founded by Sampson Lloyd and John Taylor the first bank named Taylor & Lloyds.
Furthermore, the name is changed in Lloyds Banking Company as a consequence of its expansion, becoming one of
the biggest banks in the UK.
During the time, Lloyd has kept its honouring place as one of the top ones as Statista (2024) confirms the Lloyd’s
assets recognised for a large range of clients and services. Moreover, according to Wirtz et al. (2018), Lloyd’s is a
part of the “Information Processing” groups in what regards the categorisation of the marketing framework and, it
offers strong firm services for the members. In addition, Lloyds services are palpable in connection to advertising,
picturing, reports and letters (Wirtz el. al., 2018).
Within the regulatory requirements topic, regarding the customers gratification, in January 2023 and December 2023
was organised a survey by IPOS concluded with Lloyd’s on 7th positioning along with 63% on overall service quality,
5th place with 77% for online and mobile banking and 3rd with 70% for services in branches (Lloyds, 2024).

For a better understanding of Lloyd’s market position and environmental factors that impacts the company, the present
report applies PRESTCOM1 as a analysis means, introducing also SWOT2 analysis for identifying the strengths and
weaknesses internally and also, the threats and developing chances or opportunities on the external field. In
conclusion, recommendations will be provided to advance Lloyd on the market and delivering a better service in the
banking sector in the UK.

1
Politic, Regulations, Economic, Social, Technological, Competition, Organisation, Market
2
Strengths, Weaknesses, Opportunities, Threats
PRESTCOM Analysis

Macro Environment
According to Jobber (2019) Lloyds should capitulate when facing the laws and regulations imposed by the
government on the political and regulation plan, as these regulations can directly impact the business environment.
Data Protection Act 1998 was repealed by GDPR3 which had effect within the UK in 2018 (GDPR.EU, 2024).

Furthermore, according to Lloyds (2023), the company assures the safety of secrecy in regards the personal
information focusing on privacy for the customers. BASEL III can also impact the effectiveness of Lloyds
on the political and regulation environmental plan, being an international framework for banks. In order to
reply to the financial crisis like the one in 2007-2008 which was followed by an economic recession, an
important agreement was signed between central banks from 28 countries and been introduced for future
prevention, imposing a common equity of ratio 7% as standard. In 2023, the minimum capital requirements
of Lloyds Banking Group’s Common Equity Tier 1 was 14.8%.

Source: Statista 2024

In what regards the economic factors, interest rates and inflation business may cost as a consequence of
GDP4 affecting Lloyd’s profitability. GDP is mirroring the country’s economy during a year (BBC, 2024).
Because of this, Lloyds customers changed the behaviour towards spendings and borrowing ratings
enforcing Lloyds to prevent and spare £200m in 2022 in a possible default situation (The Guardian, 2022).
According to Statista, (2024) Lloyd’s customers are worried more about the rising prices, inflation and cost
of living.

Source: Statista.com

3
General Data Protection Regulation
4
Gross Domestic Product
While the social factors like demographic, social trend, changing in customers predilections may also impact
Lloyds due to aging population for example, where is required different banking requirements, the
technological factors are chained for changing customers behaviours. Lloyds invest in AI, blockchain and
fintech innovations which make them more competitive Coadjute being a good example as Lloyds invested
£3 million using the distributed ledger technology so can consolidate the home buying process (Lloyd’s
bank, 2024). In addition, cryptocurrency5 may also affect the bank and the whole economy operations (The
Guardian, 2021).

The microenvironment
(competitive and internal)
In regards the competitive environment, Lloyds Bank is facing strong competition facing the traditional
banks, e-money institutions or new others start-ups. According to Classes (2004) dealing with a big number
of companies which offers same services is constructive as it refines the economics reducing a possible
systematic crisis. Moreover, Wirtz (2021) suggests that due to high level of competitive environment with e
e-money institutions6 the last ten years within the UK, Lloyds has to find a way of products differentiation in
order to encapsulate and hold the members.

Source: Statista.com

Organisational factors (The internal environment)

According to Masterson (2021) Lloyds can be influenced by organisational factors (leadership, money, brand, people
and their skills, budling and machinery) although Lloyds adopted a strategy which concentrates on the customers’
needs, on its employees and communities. In this process, according to Lloyds Bank (2024) the company keeps an eye
on assuring long term profitability while assuring a sustainable and prosperous perspective for the future concluding
with a influence upon the operational decisions and priorities. On the other hand, the market factors have also an
impact von Lloyds Bank. Here, is included type of customer’s needs, types or behaviours and analysing
5
Virtual currency that use cryptography for security
6
Revolut, Monzo, Starling - authorised companies regulated by Financial Conduct Authority (FCA)
these factors, offers Lloyds the chance to personalise its market manner of approaching (Masterson et. al.,
2021).

SWOT Analysis
SWOT Table

Strengths

Amongst the most known banks within the UK, having a trusty background, Lloyds Bank is popular for its character
and name. According to BBC (2020), with over 500 branches all over the UK, Lloyds offers members an easy access
to their services, helping them as well with the huge level of brand recognition (BBC, topped up by the various
financial services and products generated to encounter all the members needs, either businesses or for the well-being
of general customers. In the same time, The Guardian (2024) argues that after the digital investment in platforms.
Lloyds has developed the online banking offering customers a mobile app and other successful online service reaching
customers happiness and also improving the efficiency in what regards their operations. Furthermore, the Lloyds
Management observed three priorities on the strategic plan which concentrates on customer-centric digital leadership
and integrated financial services, that might be worthy strengths for a future development (Lloyds 2024).

Weaknesses

As Lloyds has plenty of strengths, the weaknesses are in place as well such as, old IT infrastructure usage which is not
efficient and in the same way, expensive (Wirtz et. al., 2018). According to The Guardian (2024) Lloyds meets
regulatory challenges which have concluded to some fines and also, inspections sessions influencing their renamed
brand and the financial stability. Sustaining all the Lloyds branches is also costing and in consequence, this impacts
the profitability of the bank. Furthermore, the GAP model7 has spotted gaps within the service, fact which presents the
customers expectations are not met at all times due to the inconsistent character of the delivery service (Parasuraman
et. al. 1985). Another weakness may be the latter decision which decision is to cut 1.600 jobs as shift to online
banking is a possible interruption within the service quality and workforce morale (Sky News, 2024). Furthermore, the
recent decision to cut 1.600 jobs as shift to online banking is a potential disruption in service quality and workforce
mood (Sky News, 2024).

Opportunities

In order to develop its strengths and address the weaknesses, Lloyds has few ways to keep with the contemporary
market. For instance, according to The Guardian (2024), focusing on transformation and fintech innovation
investments, the company can advance into service delivery reaching out the younger tech savvy customer base.
Lloyds has also the possibility to the exploration of domestically and internationally markets, such as green finance
and fintech partnerships using its settled brand and expertise (The Times, 2024). Moreover, Lloyds can enlarge
substantially its clients sector and service offers as long as the financial awareness grows bigger. Concentrating
processing genuine stimulators, Lloyds can also support itself to re-shape its marketing strategies (7Ps) for
operational success, developing customers contentment (Booms and Bitner, 1981). In the same time, the bank is taking
advantage of all the growth opportunities encountered via investments and in dedicated strategic teams aligned with
their unique sustainability targets (Lloyds, 2024).

Threats

Anyway, due to the high level of development on the financial service within the last decade, Lloyds encounters a
pressure feeling towards the fellows comrades on the competitive sector. These are, according to Kotler et. al. (2016),
the traditional banks, digital-only banks and fintech companies. Financial instability elements, Brexit, for instance,
inflation, and potential slumps can influence in a negative manner the way of customers borrows or money savings
(BBC, 2021). Furthermore, this developing process of digital banks acceleration boost the cybersecurity which
compromises data security and customers confidence, factors that are vital in maintaining strong banking service
(Lloyds, 2023). Also, according to Shostack (1984) applying Desing Service Blueprint assists the identification and
7
Gap Model of Service Quality - framework which helps companies to understand customers’ needs
rectification of any service fault which may unveil the company and bring it to risks as the last cybersecurity
movements have interrupted Lloyds services, l customers underlying the risk of cybersecurity breaches.

Recommendations

For a positional progression overcoming all the treats and challenges, the company may use the Gap model,
lowering the holes by calibrating service regulations with customers prospects developing employees
trainings and remodelling the communication. Introducing the 7Ps of Service Marketing, the bank must
focus on enlarging services, competitive prices, upgrading branch and online platforms, trainings for
employees, successful processes and offering quality evidence.
Furthermore, Service Blueprint will support the identification and addressing in an effective manner the
service failures. Introducing these in their strategies, Lloyds can overcome members contentment while
keeping the confidence and protecting long term sustainability as well as its competitiveness within the
changing industry.

Conclusion

Summarizing, Lloyds Banking Group has an important place within the banking industry due to its branch
connections level of coverage in regards its competitors. Its position is quite positive if is considered the firm market
settings, most likely due to members phobia and technological innovation. In the same time, Lloyds pursue to keep the
position on the compliance standards, fintech investment delivering of service that is placed on an excellence stair
regarding the quality service. On the other hand, Lloyds can work more on the technological corner, for example
making sure of the coverage of its digital channels and responding the opportunities in order to balance itself with
customer expectations, whilst turning an eye on the operational improvements. These ideas and others too, may
support Lloyds to keep its place while taking into account external factors and chances which are settling market
position on a long term.