Business Environment of Lloyds Bank: Technology, CSR, and Growth

This report provides an in-depth analysis of Lloyds Bank's business environment, with a particular focus on the impact of technological advancements and the implementation of corporate social responsibility (CSR) initiatives. It examines how Lloyds Bank has adapted to digital transformation, including investments in new infrastructure and the adoption of digital platforms. The report discusses the challenges and issues the bank has faced, along with strategies for maintaining competitive advantage and improving customer service. The analysis includes a review of how Lloyds Bank utilizes Archie Carroll's CSR model to manage its operations and maintain its position in the financial sector. The report covers the implications of technological advancements on job opportunities, customer services, and financial performance, highlighting the importance of innovation, cyber security, and stakeholder engagement. The report concludes with the importance of CSR and its role in maintaining values, communication, and making decisions for the future.

Business Environment
Lloyds Bank. Plc

Executive Summary
Business environment is change according to the changes in internal and
external environment. This report carries the changes adopted by the Lloyds Bank
in UK in terms of innovation and advanced technology. They implement new
infrastructure and shifted to digital platform. It consists the challenges and issues
faced by the bank after adopting the ICT.
Further this report has idea about corporate social responsibility paying by
the bank with the use of Archie Carroll's CSR Model. Its implementation on the
bank and how the bank manages to operate the banking operations.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Impact of advancement in technology and innovations on the Lloyds bank which help them to
increase in revenue and sales. .....................................................................................................4
Importance of corporate social responsibility (CSR)...................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business Environment is all about the influence of the external and internal factors on the
business. It leads the business to profitability or losses as well. Lloyds bank in UK working in
commercial and retail banking to provide financial services to their customers and placed as
leading name in the banking sector as well. This report caries the impact of the innovation and
advance technology on the Lloyds bank in terms of increment In the revenue and growth of the
business. Later on discussed the challenges and issues faced by the bank. Also, this report
discusses corporate social relationships.
MAIN BODY
Impact of advancement in technology and innovations on the Lloyds bank which help them
to increase in revenue and sales.
Nowadays the banking sector is involving technology and digitalisation in their banking
to provide better services to their customers as this is very important in terms of the growth of
the business. The business environment is affecting by many factors like they have internal and
external forces which influence them for adopting some changes in the bushiness due to trend
change. Lloyds bank is affected by the new trend and technology used in the external
environment, here comes a difference as it is the oldest bank among all other bankings, so they
work on their own traditional value (Atanassova and et.al., 2017). Its has great impact on their
business as customer moves towards other new banks as they have high technology along with
them. If bank want to take competitive advantages, it has to follow the trend and try to be
resourceful, collaborative and analytical.
According to (Lloyds bank’s digital transformation, 2018) Lloyds bank invested a huge
amount in the transformation of the structure of their bank approx £3 billion, in context to adopt
the latest technology in their banks. Digitalisation in banks is normal in these days, so Lloyds
bank launched strategic plan for three years in this path. They are continuously focusing on the
innovative ideas which may be proved very profitable to them. They also focus on the employees
training and development in the Information Technology, which gives them necessary advantage
in terms of highly skilled employees are working in their bank with lots of experiences (Marris
and Calvert, 2018). They take some steps like they build data analyst team, IT team, Cyber
security team. Further explained as

Data analysts team
Lloyds bank think innovative, so they created in-house digital analysts team in their
headquarter. They collaborate with the Google and Advanced skills institute. But they didn't
include any team member from Google, while they just use the Google's big data platform and
security for the Lloyds account on the cloud based system of the Google. Cloud computing is
very famous nowadays, it secures all the data of the customers and maintain their privacy. So the
Lloyds bank team uses the tools like Big Query, Big table, data flow or databases which are
tested on the Google's platform and it is openly accessible for them. As Google gives the training
to their sales and products team about the usage of the products of the Google. Also, the Fintech
was set by the Google's ex team members in the bank (Arcos-Novillo and Güemes-Castorena,
2017). It is cloud based infrastructure for banking which is real time, high volume architecture. It
helps to maintain the billions of transactions across all over the UK at a time. So that bank can do
well and match the trend followed in the external environment. In this way, bank is working to
provide improved services to their customers and employees throughout the UK.
Information technology
Bank is working to provide better services to their customers like online services, cloud
based services, technology updated at workplaces for their employees. By adopting such high-
tech infrastructure in the internal environment gives various profits to bank. IT department is
separately handled so that, if any problem arises they can resolve the issues at a time.
Cyber security Risk
Lloyds bank has several customers, so it has to maintain the security online and offline of
the customers. There are many transactions in a day takes place which should be very secured.
But there are major online security threats like hackers, virus, trojan, malware, adware etc. to
handle such threats bank has a need security system. Also, according to a report (Lloyds bank’s
digital transformation, 2018),Trickbot trojan for banking is back with improved and latest tricks
of phishing, the customers of the Lloyd bank are targeted in a phishing campaign, so the cyber
security team should be alert and active and try to stop such attacks.
Innovation and technology affected the bank's growth and their sales
Job opportunities
The bank has opened approximately 8000 jobs in digital strategy operations in which the
enw posts are filled by the existing employees in the bank as they are working since many years.

So they train them to operate the new technology. This will give the employees the advantage of
increment in salaries. Also, new jobs including data scientist, cyber security team will be
appointed from external sources, that's how the management will process the recruitments. But
negative aspect of this thing is showed by the trade union that approx 6000 employees will loss
their jobs and in last fiver years due to this advancement in technology about 53000 worker had
lost their jobs, which leaded the UK to financial crises (Solberg Hjorth and Brem, 2016). As per
new technological trend it has created a lot of opportunities of employment in the industry.
Improved customer services
As the banks shifted on the digital online platform it provides so many facilities to their
customers. Like they can access their accounts from anywhere and get to know about all the
details regard to the funds. Also, the opening of new accounts becomes easier, payments
transactions are comfortable. So this leads the customer satisfaction. Also, discussing on the
security of the customer's funds and their important documents or jewels are safely placed online
as well as offline platform. For example bank provide the vaults facility to their customer to take
lockers and place their documents or jewels in them which are under CCTV surveillance or high
Illustration 1: Employment growth due to technological innovation

security, it will not allow anybody to get access in that premises without proper authentication
and only authorised person is allowed to get access into it (Lundström, 2019). Online security
like they use the cloud based services which are highly secured and needed lots of security
password to access the accounts.
Enhanced growth
All such factors give the growth to the bank in terms of generating large amount of
revenue. As they have adopted new technology at their banks so new customer will attract
towards this as easier facilities are available. Bank will be able to open more branches in the UK
and take the competitive advantages like they care make new business strategies and gives offers
to their clients like cashback rewards, low rate locker facility, etc. As they collaborate with other
companies like retail or fashion industry or online companies which gives sales discount etc.,
will encourage the customers to open their accounts in the bank (Välk and Mougenot, 2019).
Lloyds bank is functioning in retail and corporate sectors for giving financial services, so they
use some promotional activities to improve their sales, they give their products information, so it
helps in more customers. That's how they can increase their revenues and sales of their products
in market and become the leading name in financial service.
Financial and ICT issues for key business function
Advancement in innovation and technology needs a huge investment, so the bank have to
invest huge amount in it. They have collect the mutual understanding and with mutually they
have to take decisions for this, like their stakeholders, investor, should be ready to invest in new
infrastructure (Grushevenko and Kapustin, 2017). Also, Information and communication
technology is updated version used at workplace so there will be loss of time, loss of resources,
as they did not meet up the sudden changes in the working environment, for sometimes it may
lead to customer unsatisfactory behaviour. But when employees get trained they will be able use
these technological changes appropriately and be in quick with operations.

Importance of corporate social responsibility (CSR)
Lloyds Bank is very concerned for their customers, they continuously work for the
betterment. As they adopt new technology, new business strategies so that they can take the
competitive advantages. As increment in the competitors, they should maintain their corporate
social relationships (CSR) in market (Raghunathan and Maiya, 2017). CSR helps the businesses
to maintain their values, with their customers, and employees as they communicate properly
about the operations they do, decision-making and sustaining future. CSR shows the interest in
social issues which impact the business in profits sense and also, the competitors who attract the
target segment with possessing same values. So considering such points the business can make
good sense to operate for long term. To maintain these values in the market leads to profit
margins for the organisation.
Lloyds bank maintain their CSR in the market that's why they are ale to open new
branches in UK, about 2400 branches they opened in country. As the bank works completely in
private sector and don't take support form government it has to pay a big amount in tax form to
government, which helps them to increase the economy of the country. Lloyds bank
continuously work to provide better services to customers and grab audiences for being a part of
their organisation (Burton and Hope, 2018). They collaborate with other companies with good
will and additional values are added to their market values.
Archie's Carroll's (CSR) model
CSR is organisation's responsibility towards their customers, stakeholders, which may be
groups or individual who are interested in company's products and services. Moreover, this
includes employees, investors, suppliers, or associated target market. So CSR simply defines that
profits should be maximise and minimise the risks for associated stakeholders of the company,
like stakeholders requirement should be met. Customers satisfaction is necessary. Investors
should get profit of their investment.
According to Archie Carroll's CSR model (Shabana, Buchholtz, and Carroll, 2017),
business management is divided into four areas which are legal, economic, ethical and
philanthropic. It is a pyramid which identifies each area according to their requirement.

Economic
Economic responsibility is related with the profits, as the company have top provide good
profitability in terms to return on investments. It also includes, finding new and innovative ideas
to provide better services and offers for generating revenue and enhance market value (Ortiz-
Villajos, 2017). It should contribute for providing new job opportunities and good services and
products to their society.
Legal
Company should follow the legal polices and procedure and work under the legislation.
Company should rely on truth and obeying the laws so that it build the trust in consumers. If
company noted for illegal practices it should be penalised or shut down but it affects the
investors and stakeholders (Michelon, Rodrigue and Trevisan, 2019).
Ethical
Ethical responsibility of the company is main to concern because it should work in
following the ethical criteria like they should manage the recycle of the products, manage
wastage and consumption. It is under government rules in some area so it should be followed
with high priority in the company (Lock and Seele, 2016). Also, company should be careful on
advertising and promotional activities, it should be in limits and ethical. Further, company should
Illustration 1: Archie Carroll's CSR Model

provide their employees motivation for work, clean workplaces, safety precautions so it leads to
high productivity by the employees.
Philanthropic
According to the Archie, business ethics suggest the philanthropic responsibility for the
corporate to work in direction to promote the good will and well fare of humans. Like they can
involve in charitable programs and donates funds for poor, raise funds for uneducated children
and help them to provide education.
Implementation of the Archie CSR Model on Lloyds Bank
Lloyds bank can follow the Archie Carroll's CSR model to work efficiently and securing
future for long term. As the bank follow this model, firstly they should give importance to the
economic responsibility which is necessary. Bank implements new business strategies to enhance
their revenue and growth in the market. So they are on right track to take lead in banking sector
like they adopted latest technology which helps in increasing their working capacity, more
customers attracted towards them, so they are able to produce good profits and sales of their
products and services (Christensen, Hail and Leuz, 2019). It helps them to meet the stakeholder
criteria for desired result. Secondly legal responsibility bank is working under the laws and rules.
They follow the legislation of the country so that they should not get penalised. They don't break
the rules in terms of any illegal practices. Also, they work for maintaining cyber security for their
customer, if any cyber crime is reported by anybody in the organisation they take necessary
actions. They are very much concerned for customer's privacy so thy don't allow any
unauthorised person near the vaults. So that they maintain the legal rules and policies. Third
ethical responsibility which is maintained by the bank, they completely follow the ethics, morals
and values so that people don't get hurt from anything in account of social responsibility. They
promote their banking products and services within ethics (Vallentin and Murillo, 2019). They
concern about their advertisements, it should not cross the barrier of moral and social norms.
Bank appoints such customer care executives which handle the customers being polite and soft-
spoken towards them and respect their consumers. These practices show their ethical or social
responsibility for their society which imposes increment in market value. Fourth philanthropic
responsibility, bank take part in such activities like charity function, or they donate some amount
in these charities. They work for human welfare like they provide education for uneducated

children in free and provide necessary help to poor. As they conduct some promotional activities
for human welfare.
Following such analysis of the CSR of bank tells about that how much they are obligated
for paying their social responsibilities. They make their value in market, fulfil the requirements
of their stakeholders, they return profit tot their investors. Moreover, they pay their responsibility
in terms of ethics, legal, philanthropic, economic to their consumers so that they appreciate their
products and services (Lloyd, 2017). It makes the sustainable future for the Lloyds bank. It will
be more successful as thy work to open new branches in UK.
CONCLUSION
According to the report on the business environment of Lloyds bank, it gives the idea of
their working. The bank adopted new technology at their workplaces and shifted to online
platforms which increase their customer all over the UK. It enhances their reach towards
consumers and bank will be able to generate more revenue. Next report provides the analysis of
the CSR model and its implication on the bank, how the model is helpful in over all
achievement. So the bank follow the Archie CSR model and achieve their goals, it provides
customer satisfaction, investors returns and meeting the stakeholder requirement. It helps the
Bank to increase it prestige in market.

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Online