Lloyds TSB Net launch to save £1bn

Lloyds TSB is to launch a separately branded Internet bank in an attempt to reduce annual costs by as much as &£1bn in the face of intense competition from new telephone and Net operations.

The bank’s positioning, identity and name have yet to be decided, but it will provide a full product range. These may offer better rates of interest than those available through Lloyds TSB, but will not be loss-leaders.

A pilot – involving 50,000 Lloyds TSB customers – will be launched in the New Year. It will be rolled out next autumn.

The move follows the recent launch of Loan Direct, which undercuts Lloyds TSB-branded loans.

Ford Ennals, group marketing director at Lloyds TSB, will be responsible for marketing. He will report to Gordon Pell, group director of retail banking at Lloyds TSB, and head of the new bank.

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