Bancassurance is going to be a core part in
Lloyds Banking Group’s reorganised retail banking strategy, CEO
Antonio Horta-Osoria said.

Horta-Osaria said the group aims for a 50%
increase in the number of bancassurance clients as well as double
sales and pre-tax profits by 2014 from its pensions and investment
subsidiary Scottish Widows. Exact figures for bancassruance clients
were not disclosed.

“We expect our Scottish Widows manufacturing
platform to enable us […] to provide a wide range of products to
customers in an integrated manner, benefiting us in terms of both
product innovation and development and in the delivery of products
to our customers,” Horta-Osoria said.

The increased importance of Scottish Widows in
part of the group’s revised overall retail banking strategy to
regain customer trust.

The strategy also includes transforming
Halifax Bank into what Horta-Osoria called “a leading challenger
brand in the UK”.

“We will aim to deliver a simple, efficient
and fair customer experience and innovative products such as the
ISA Promise, Clarity Card and Reward Current Account,” Horta-Osoria
said.

He added that the bank would launch a new
campaign in September to attract new customers.

Horta-Osoria added that the group would be
committed to maintaining its branch network after the sale of its
632 branches as required by an EU mandate.

Financial targets in its retail banking
business include a £2bn investment between 2011 and 2014 to grow
the core customer business.