Lloyds Banking Group chief executive Charlie Nunn has unveiled an ambitious new strategic plan that leans heavily on artificial intelligence to drive approximately £2bn in cost reductions by 2030, even as he acknowledged that the technology will reshape the workforce at Britain's biggest domestic lender.

The plan, branded "Accelerate 2030," aims to lower the group's cost-to-income ratio from 50 per cent in 2026 to below 45 per cent by 2030. That metric — which measures operating costs as a proportion of income — is a core indicator of banking efficiency, and Lloyds' target would bring it closer to the levels achieved by the most efficient European and US peers. Nunn said the lender had already secured roughly £2bn in "growth cost savings" under its previous five-year strategy through a combination of office footprint consolidation, technology upgrades, and broader "operational and efficiency changes."

"Those kinds of levers will continue in front of us," Nunn said, without specifying whether the next phase would result in further job losses.

AI and the Workforce

Nunn was candid about the broader implications of AI adoption. The technology is "going to impact work" and will "require us to reskill people and hire new people," he said.

He characterised Lloyds' approach as measured, noting that roughly 50 per cent of the bank's AI initiatives are focused on "differentiating and extending what we do for customers into new areas," while the remaining half centres on "helping our colleagues do their tasks more effectively and more efficiently."

Nunn's comments echo a growing consensus among banking sector leaders. HSBC chief executive Georges Elhedery has said AI will "destroy certain jobs and will create new jobs," while JPMorgan Chase's Jamie Dimon has stated the technology will "reduce jobs down the road." In May, Morgan Stanley forecast that AI-driven job losses across the European banking sector could reach 400,000, double its earlier projections.

Lloyds has already undertaken significant staff reductions. The bank eliminated 1,600 roles in January 2024, followed by several additional redundancy rounds. In September of last year, it emerged that Lloyds was placing its weakest-performing five per cent of staff — approximately 3,000 positions — at risk of redundancy.

Branch Network and Digital Investment

As part of its digital transformation, Lloyds is set to close approximately 232 branches in 2026. Nunn said physical sites would remain an "important part of our proposition," but stressed the bank would "follow the customer and our customer data around our branches." The closures form part of a long-running contraction across the UK high street: consumer group Which? has tracked more than 6,000 bank branch closures or scheduled closures across the country since 2015, a trend that has drawn scrutiny from lawmakers and regulators over access to cash and in-person services.

The group plans to invest more than £13bn in digital services, which will include the launch of a new smart wallet. Lloyds completed its acquisition of Apple Pay rival Curve in November 2025, and the fintech's services have now been fully integrated into the group. The Curve brand will continue onboarding new customers without any changes to its identity. According to City AM, Curve founder Shachar Bialick is set to step down from his role as chief executive of the fintech.

Blockchain and Tokenised Deposits

The new strategy also advances Lloyds' ambitions in tokenised deposits — conventional bank money converted into programmable digital tokens that enable instant transfers and automated rules. The technology is attracting growing interest across global finance, with institutions including JPMorgan through its Onyx platform and HSBC through its tokenised bond issuance exploring similar infrastructure. Earlier this year, Lloyds completed the UK's first public blockchain transaction using tokenised deposits, purchasing UK government bonds with instant settlement.

Nunn said the bank is exploring blockchain technology to cut mortgage approval waiting times to approximately three days.

City AM reported in May that Lloyds had entered a partnership with Google to build an internal platform for AI agents. The bank also sent its chief executive and senior leadership through an AI bootcamp at Cambridge University last year to accelerate adoption across the organisation. The moves come as the UK's Financial Conduct Authority continues to develop its framework for the safe adoption of AI in financial services, balancing innovation with consumer protection obligations.