Impact of Technology and Innovation on Sales, Profit, and Operations of Lloyds Bank

This study analyzes the impact of technology and innovation on the sales, profit, and operations of Lloyds Bank. It also explores the significance of corporate social responsibility (CSR) and Archie Carroll's CSR model in the context of the bank.

BUSINESS ENVIRONMENT

Executive summary-
In current study is has been analyzed that by switching towards ethical business practices
Lloyads Bank Plc sustain for longer within banking sector. Mobile banking and MICR
technology or innovation helps bank to increase their productivity, enhance operational
efficiency and satisfy consumers.

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Impact of technology and innovation on sales, profit, operations and growth of company........3
TASK 2............................................................................................................................................6
Significance of CSR.....................................................................................................................6
Archie Carroll’s CSR model in context of firm...........................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The current study is based on Lloyds Bank which operate its business in UK since for so
long. This study explains innovation and technology impact on business sales, progress and
operations. Furthermore, it also justified CSR importance for company and clarify Archie
Carroll’s CSR model in context of bank.
TASK 1
Impact of technology and innovation on sales, profit, operations and growth of company
Innovation, it the procedure of translating an invention or idea into products or services
that creates values for consumers (Varadarajan, 2018). It takes place through provision of more
efficient goods, business models, processes, services or technologies that are made accessible to
governments, community and markets. It includes deliberate application of imagination, info and
initiatives in offering better or essential values from resources and also involves all procedures
by which new concept are created and converted into useful items. Innovation is key component
of organizations progress and long term success.
Technology, is another driver of business growth it drive management towards achieving
competitive benefits. Technology changes enhance productivity level of businesses and also aid
to strengthen their brand image within specific marketplace (Carroll, 2017). It play vital role in
delivering quality products or services to specific target market set by a big multinational
company, it also contribute in economic growth. In context of business, this driver caters a faster,
more effective and more convenient way of performing business transactions. Some of action of
this element in companies includes accounting systems, point of sales programmes, management
information systems and other complicated but beneficial tools.
Lloyds bank Plc is one of the best British commercial and retail banks with many
branches across Wales and England. It considered as one of the large four cleaning banks in UK,
founded by Taylors & Lloyds in 1795. It is the biggest retail bank in nation and has an extensive
connection of branches as well as ATM arrange for their consumers to be offered by Bank of
Scotland Branches in Scotland and Halifax branches in Vice & Northern Ireland and serve 24

Hours telephone services along with online. This bank is able to provide local people of England
and Wales financial services.
In order to enhance profit and gain attention of consumer’s Bank must innovate
something new or add on new features within existing goods. It just not represented by
implementing or producing new methods, innovation is defined as procedure that includes
different activities to uncover new ways to do things. Innovation and technology are the most
important factors that directly impact on profitability, progress, sales and operations of Lloyds
bank. Banking sector in UK become more concentrated strategically besides making wide
advancement in technology. Banks are innovating faster by targeting, delivering, expanding
services and re-configuring delivering channels.
Mobil banking technology-
It is one of the best technology every developed in the world it provides benefits of bank
and its consumers. It refer to utilize of smart phones and other electronic devices to perform
online banking activities while away from home computer such as transferring funds between
accounts, measuring account balances, locating an ATM nearby specific location and bill
payment (Han, 2020). This technology enhances productivity level of Lloyds bank and also help
to increase their operational efficiencies rather than before. Earlier in banking sector workers are
accountable for transferring money into their clients’ accounts, everyday they play vital role by
providing back accounts details to its consumers. These services are beneficial for customers but
not for employees it consume a lot of time and efforts as well that may be affects banks
operations negatively.
But with mobile banking technology everything is going so easy for Lloyds bank and its
staff as they can cater fast and quick services to people. It provide new chances for company to
cater added convenience of their current consumers in developed and developing nations in order
to reach a wide populations of unbanked clients in emerging markets, company have radically
moved from traditional banking to branchless mode of banking. Adoption of this technology
makes this bank able to extend their consumer base, where mobile banking proved to chief
management (Merhi, Hone and Tarhini, 2019). By offering this service management is capable
to retain their clients for longer period of time and also gain attention of new people in effective

manner which beneficial for Lloyds bank in term of increasing profitability, sales and banking
operations. It is financial service offer by firm where people perform balance inquires, transfer
money easily from their personal accounts to another member either friends or family members.
It saves time and efforts of organization which they can use for improving banking activities in
effective manner. It analyzed that bank generate 66% more revenue from individuals of mobile
banking services that from branch only consumers. It lower firm expenses and increase overall
efficiency by helping Lloyds bank go paperless can be eco-friendly, saving money on delivery &
printing, reducing need to hire additional applicants, providing transaction that are ten times
cheaper than ATM money transactions and by saving on operational price to running bank
branches. It helps consumers to stay with bank for longer period of time and that increase
profitability of firm more than its competitors.
Magnetic ink character recognition-
Technological innovation is widely utilized by banking industry to develop competition
advantages and intelligence because it aid banks to enhance their services and cost efficiency
since fewer workers and less traditional banks branches are required. MICR is one of the best
innovation or technology utilized to verify originality or legitimacy of paper documents,
especially checks. Special ink, which is sensitive to magnetic areas, is used in printing of certain
characters on main documents (Dabwor, Ezie and Anyatonwu, 2017). With innovation of MICR
cheque procedure systems processing of cheques within Lloyds bank become easier and faster
rather than before. The use of this system will enhance security and decrease losses caused by
some kind of crime. With this technology bank obtain high speed approach of scanning and
processing data that directly impact on its sales and profit margin. It help of build strong trust
between consumers and manager and work towards gaining attention of more consumers who
are able to open their saving accounts with good income source that is beneficial for Lloyds
Bank.
Magnetic ink character recognition (MICR) read characters inscribed on cheque with ink
and containing magnetized elements. It helps to read important character upon several checks
that prevent consumers from being forded by other person. It directly impact on bank cheque
processing procedure and save time. It enhances operational efficiency by saving time and
money for hiring new candidates who can check single character in cheque every day. When

bank use this technology they can effectively verify validity and increase security of singed
checks that build good relations with clients and enhance their management operations perfectly.
Error rate of reading MICR characters is few when compare to other digits recognition system. It
accurately and precisely decipher character. It is expensive but effective equipment that save
efforts of bank workers to check each character. It makes clearance and processing of cheques
easier for bank and enhances security system more than before. By using this technology bank
can secure its business from any type of legal issues or being forged. For instance, counterfeit
check created using a color photo copying machine, magnetic ink line can either not respond to
magnetic areas or can produce an inappropriate code when scanned utilizing MICR device
designed to recover data in magnetic character. Even legitimate check can rejected when MICR
reader indicated that account owner has history of writing poor checks.
TASK 2
Significance of CSR
Corporate governance is considered as system of rules, procedures and practices by
which a company is controlled and directed (Yermack, 2017). It is essentially includes balancing
interest of organization many stakeholders such as consumers, financiers, suppliers, government,
workers. It also known as combination of laws and regulation by which any company are
managed and operated within specific sector. Board of directors is accountable for establishing
vision, values and mission for workers. BOD is also responsible for providing appropriate
satisfaction to its consumers, staff and government who is the main stakeholder of companies.
Corporate governance guide firms to work ethically and follow sustainable business practices
that are beneficial for long term success.
CSR is one of the best way firms can use to become sustainable companies in
marketplace. Corporate social responsibility is refers to self regulating business model that aids a
organization be socially responsible to itself, their workers and other stakeholders (Schrempf-
Stirling, Palazzo and Phillips, 2016). It is management concept whereby organizations integrate
environmental and social concerns in their business functions and interactions with consumers,
employees and others. CSR is really very important for Lloyds Bank as it help them to sustain
within banking sector for longer period and also aid management to retain their potential

consumers. Corporate social responsibility contributes to strengthen bank image within banking
sector and gain attention of more investors towards investing in success and growth of bank
rather than before. Its policy acts as self regulations mechanism whereby bank monitors and
assures their active compliance with spirit of global norms and ethical standards. It is when
company operates in sustainable and ethical way and deals with their social as well as
environmental impacts. It means a careful focuses of human rights, environment and society in
which bank operates (Ahmed and El-belihy, 2017). It can be said that CSR is incredibly
necessary for Lloyds Bank which make them able to gain attention of its consumers and retain
skilled applicants for longer. It is essential that bank operates in manner that demonstrates social
accountability. CSR implication is seen as good practice for business to take into account
environmental and social issues such as unemployment.
Social responsibility and ethical business practices are really very significant to long term
success of Lloyds bank within banking industry, UK. According to the outcome of Ebiquity
Global research 91 percent of global customers expect companies to operate accountability to
consider environmental or social problems. Moreover, 84 percent believe that seek out
responsible goods wherever possible. People are increasingly aware of significant of social
accountability and actively seek items or services from companies that operates ethically
(Pasricha, Singh and Verma, 2018). So it can be said that CSR business practices is important for
Bank to retain these consumers.
CSR improve bank image within marketplace rather than its competitors, it is essential as
people assess company reputation when deciding whether to open saving or business account.
Something easy, like workers volunteering an hour a week at good cost like charity, reflects that
Bank branches committed to supporting others. As outcome, firm will much more favorable to
people. When organization conduct ethical business practices it increased their business
awareness and recognition all over the world. For example, when Bank is committed to ethical
practices like offer good employment opportunities to local people this news will spread. More
individual will therefore hear about this act which creates increased brand awareness rather than
before. Company can adopt meticulous corporate social responsibility policies to limit lending
related to destructive tasks. Furthermore, it analyzed that by adopting comprehensive
environmental policy Lloyds Bank can secure its business from legal issues. According to this

policy company had to play effective role such as to perform towards socially and ethically
accountable banking.
Archie Carroll’s CSR model in context of firm
Carroll’s corporate social responsibility pyramid is appropriate framework that explains
how and why companies must take social accountability. CSR pyramid is developed by Archie
Carroll he highlights four most essential kinds of accountabilities of firms (Jamali and Carroll,
2017). It has become mostly utilize and is meant to describe main points that a company duties to
their consumers, workers and other stakeholders fall under.
Economic-
According to this element a organization economic accountabilities include being
profitable in order to cater a return on investment to stakeholder and business owners, to create
vacancies in their communities and to contribute effective services & quality products to society.
Part of being economically accountable means streamlining procedures to search the most
beneficial ways to sustain business and innovating their goods offerings as well as marketing to
increase profit margin.
In regards to Lloyds Bank, they can sustain for long in its sector and also retain
consumers with them by offering services without focusing on increasing profit. They add more
value for people by providing net banking services, it allow people to monitor their accounts
related activities by using smart phones it added more value for clients which in return
strengthen business image in banking sector.
Legal-
This is the second component or area of this model that drive firm towards practicing
being sustainable. Companies must assure that its business practices are legal and ethical as well.
Obeying rules and regulations aid protect consumers, who relies a company to be truthful about
their services, investors and sells that stand to lose profitability when firms is penalized or shut
down because of not following legal activities.
In context of Lloyds bank Plc, they must follow all the legal requirements and perform
accordingly that is beneficial for its business in term of increasing revenue, gain competitive

advantages and maximize profit margin rather than past few years. Bank must adopt consumer
protection act 1986 principles and cater their services to its clients accordingly.
Figure 1CSR Pyramid
(Source: Archie Carroll’s CSR model, 2020)
Ethical-
Beyond enduring by letter of the law an firm’s ethical accountabilities include recycling,
managing waste and consumption. These elements are sometimes regulated by local or national
governments, but often a organization can go further than what institute policies and law requests
that support sustain environment for the future generations. Along with this, other ethical
accountabilities come in form of marketing, as in not stretching truth to target market just to
obtain them to make a purchases or use of services and treatment of staff.
It can be said that when Lloyds Bank and its management cater good wages to its workers
they can act ethically and effectively retain their skilled employees with them for long.
Organization by offering more than minimum salary and safety precautions to their staff build
strong relationship with them and motivate them to perform better than past few months. It
consider ethical business practice of bank.

Philanthropic-
This is the last component of Archie Carroll’s CSR pyramid that also suggests essential
things in context of business. It includes all type of business giving, embraces discretionary
activities and business voluntary. Business or philanthropy giving may not be accountability in a
literal sense but it is usually expected by companies today and is an important part of everyday
expectations of individual.
In context of Lloyds Bank, they must implement this element of CSR pyramid because it
makes them able to sustain for long and allow gaining all the benefits. By offering fair growth
chances to staff company can conduct ethical business practices it create positive working
environment around workplace and inspire people to work hard.
CONCLUSION
From above analysis it has been concluded that mobile banking, MICR and CSR provide
many benefits of Lloyds Bank. All these drivers increase its profit margin, reputation within
banking sector and consumer base.

REFERENCES
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performance of banks in an emerging economy, the Nigerian experience. Journal of
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