Lloyds Banking Group transforms customer service with cloud-based applications
Replaced monolithic applications by migrating to cloud
Delivered better customer experiences and cost savings
Increased application speeds for upgrade and change capability
“Pega has been a fantastic digital transformation partner. It has helped us in our value streams and in our delivery directorates: retail, insurance and wealth, commercial and enterprise … We have more than 300 business workflows, and there are 32,000 users benefitting from it.”
The Business Issue
Lloyds Banking Group is the largest financial services organization in the U.K. – with more than 300 years of banking experience, over 30 million customers, and the largest share of the U.K. mortgage market.
The bank has a long history of partnership with Pega and manages 50 applications across four banking areas – retail, insurance, commercial, and enterprise. These applications have 32,000 users and process between 40 to 50 million cases a year. Working across so many separate applications was inefficient and prevented the bank from providing the best customer and employee experiences possible. Lloyds Banking Group needed a better way to improve, scale, and manage customer experience.
The bank started its Pega Cloud journey in February 2020, when it decided to migrate 25% of its Pega estate as part of a risk remediation and transformation program.
Lloyds Banking Group embarked on its cloud modernization journey with these goals in mind:
- Establish an evergreen public cloud platform to replace monolithic and costly upgrades
- Take advantage of the latest features to transform business processes and thereby improve the customer and colleague experience
- Increase efficiency and productivity by leveraging the latest continuous integration and delivery capabilities to ensure quicker development and a shorter time to market
- Reduce the total cost of ownership (TCO) and simplify its application portfolio to allow year-on-year savings for the bank
Prior to starting this transformation, Lloyds Banking Group's applications:
- Were hosted on-premise
- Used outdated versions of the technology
- Were subject to complex, expensive, and lengthy upgrade processes
Lloyds chose Pega Cloud®, powered by AWS, to consolidate these processes, simplify its estate, and improve efficiencies in its operating model. The core platforms teams worked closely with business process owners to define improvement opportunities in areas such as fraud and disputes, financial sanctions, and tax. A key upside was the ability to quickly change and adapt to using a low-code environment.
Within a year of starting its cloud journey with Pega, Lloyds Banking Group has successfully transformed, remediated, and rationalized eight legacy applications into four cloud-based applications hosted on Pega Cloud. The bank has also implemented four brand new applications, including Breathing Space, an application to support customers struggling with problem debt. This application was delivered within six months thanks to Pega's low-code capabilities. A project of the same complexity would previously have taken nine months.
Lloyds Banking Group is now able to keep its strategic applications evergreen and constantly up to date. The bank has upgraded its Pega platforms four times, with each upgrade taking no longer than a few weeks with minimal testing required.
Lloyds Banking Group’s key accomplishments at-a-glance:
- 8 applications now hosted on Pega Cloud
- 3,000+ users
- Significantly reduced technical debt across the estate
- Reduced total cost of ownership (TCO) through the consolidation and decommissioning of multiple applications
- Increased speed of change by 25%
- 85% reduction in clicks and screens
- 95% of frauds and disputes automatically resolved
- Delivering 10+ changes to production per week
- Upgrade process reduced from months to hours
- 90+ integrations
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With age comes experience. And when a business has been around for more than 320 years.