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Barclays UKhome.barclays/annualreport Barclays PLC Strategic Report 2017 23
Barclays UKOur performance in the UKWith 30,000 colleagues and 24 million customers and clients,Barclays UK strives to help people move forward by providingpersonalised and perfect experiences, delivered by passionatecolleagues. In 2017, we have made significant progress inestablishing the ring-fenced bank, protecting our customersand clients and transforming our business through digitisationand automation.Overview of products, services and clientsOur future ring-fenced bank, Barclays UK, is apersonal and business banking franchise, builtaround our customers’ needs with innovationat its core. Our Personal and Premier Bankingfinancial solutions help customers moveforward by putting them at the heart ofeverything we do, connecting the differentaspects of their lives to their financial lives, ata time that suits them. Barclaycard ConsumerUK is a leading credit card provider, offeringflexible borrowing and payment solutions,while delivering a market-leading customerexperience. Wealth, Entrepreneurs & BusinessBanking serves a spectrum of clients, fromthose who manage their own investments tosmall and medium-sized enterprises (SMEs)who need specialist advice, products andservices.Market and environment in which thedivision operatesAgainst the background of a prolongeduncertain political and economic climate inthe UK, we continue to deliver solid financialperformance and provide innovative solutionsfor our customers and clients. The operatingenvironment continues to be challengingincluding rapidly changing customerbehaviours; increasing expectations of societyand regulators; and significant technologicaldisruption amid the threat of dis-aggregationfrom competitors and new entrants. However,we have a leading brand, a solid customerbase and we remain well positioned in thecurrent environment.Barclays UK operational modelCustomersand Clients IndividualsBusinesses (SMEs)Productsand services Personal banking servicesCredit cards andtransactional lendingInvestment products andservicesBusiness banking solutionsValuecreation To our customers andclients – Buildingmeaningful relationships toprovide relevant financialsolutionsTo society – Helpingcommunities move forwardTo Barclays – Ring-fencedUK-focused bank withsustainable returns andprudent balance growthContributionto Group 7.4bnIncome 1.7bnProfit before tax9.8%RoTE66%Cost: Income ratio 70.9bnRisk Weighted Assets24Barclays PLC Strategic Report 2017 home.barclays/annualreport
Educating our customers in Digital SafetyIn May 2017, we launched our UK-wide consumer engagementcampaign to highlight the importance of digital safety and our rolein helping people move forward in this digital age.The digital age has made our lives much easier in many ways.We now share information, shop online, pay bills, and keep in touchwith each other in cyberspace. For many people, this is their way oflife and they feel confident in navigating the digital world. However,having the confidence to be able to work and play in the digital ageisn’t the same as knowing how to keep safe while doing so.Our campaign resulted in over 4.8 million people taking action offthe back of this outreach, resulting in our leadership role beingrecognised by Government ministers and the media.We are committed to ensuringcontinued growth of BarclaysUK, and are cognisant of therapid pace of technologicalchange in today’s environment.Risks to the operating modelWe continue to monitor leading indicators toidentify trends in UK economic performance– in particular, trends caused by low interestrates, Brexit uncertainty, as well from theimpact of the increase in zero hour contracts.We aim to remain conservative and wellpositioned post-Brexit with stable trends inimpairments supported by our strong riskmanagement framework and oversight.We are committed to ensuring continuedgrowth of Barclays UK, and are cognisant ofthe rapid pace of technological change intoday’s environment. In order to continue toprovide exciting and relevant solutions for ourcustomers and remain competitive againstnew entrants, we are investing significantly innew technology, while simplifying andautomating our existing platforms.Unrelenting growth and sophistication inorganised crime remains a concern. In orderto reduce the risk of cyber threat and protectour customers and clients, we continue toinvest heavily in cyber risk, improvingdetection and response capability andimplementing new resilience standards andtesting approaches.home.barclays/annualreport Innovation at our coreHalf a century after launching the world’s firstAutomated Teller Machine – the ATM, wedeveloped new ‘contactless cash’ withdrawaloptions in 2017, fit for the digital age. Inaddition, we extended our cheque imaging pilotprogramme to other banks, allowing morethan 243,000 customers the ability to pay incheques instantly from wherever they are,24 hours a day. We also achieved an industryfirst with Insurance Instant Price – our firstmobile insurance proposition, allowing instantprice quotes from our providers toapproximately 1 million customers.Key highlights this year in delivering ourstrategyThis year we have built the Barclays UKring-fenced bank and a diverse, highlyexperienced board has been appointed by theBarclays UK Chairman. We have also migratedover 600,000 customers onto new sort codeswith minimal customer impact.Alongside this, we have made good progressbuilding meaningful relationships with our24 million customers and significantlyreducing the number of customer complaints- one of our key objectives for 2017 - bydeveloping our colleagues and tackling theroot causes. Interactive tools are now availableto enable colleagues to more effectively own,manage and collaborate in the timelyresolution of complaints. Reducing customercomplaints further will continue to remain oneof our top priorities for 2018.Over 10 million customers arenow actively engaged withour digital services, includingour award-winning BarclaysMobile Banking mobile app.Delivering on shared growthOur signature citizenship programme,LifeSkills, aims to inspire young people todevelop the skills they need for a better future.In less than five years, it has reached over5.5 million young people and more than16,000 colleagues are now registered asLifeSkills volunteers.We expect 2018 to be a pivotal year for thefinancial services industry with theintroduction of PSD2 and Open Banking butwe believe Barclays UK has a significantopportunity to thrive in this environment. I ampositive we will continue our lead ininnovation in an Open Banking environment,as a new ring-fenced bank.Ashok VaswaniCEO, Barclays UKBarclays PLC Strategic Report 2017 25
Personal BankingOur performance in Personal BankingOur Personal and Premier Banking team develop transparentand innovative solutions for our customers. We help customersmove forward by putting them at the heart of everything wedo, connecting the different aspects of their lives to theirfinancial lives, at a time that suits them. This ranges fromopening their first bank account to completing a mortgage ontheir dream home.This year we created a single Product andPropositions team, bringing together our coreproduct capabilities in Current Accounts, FXand Insurance, Consumer Lending, Mortgagesand Savings with our newer InformationBusiness and Mobile Payments products, aswell as with the Community and Premiersegments they serve. Through doing this, weare now able to more fully anticipate anddeliver responses to our customers’ needs andunderstand what they want in the momentthey need it.Moving Barclays UK forward2017 has seen a continued focus on rewardingcustomer loyalty and creating advocates forevery interaction. Over 930,000 customers nowbenefit from Blue Rewards, including Cashback.We landed our first 10% Cashback retail offersand have helped our customers earn over 5 million in savings since Cashback waslaunched.Technology and data are such fundamentalparts of how we serve customers and clientsthat it is vital that we all become more digitallysavvy and help our customers to do the same.We started several years ago with thenationwide force of Digital Eagles, offering ourcustomers and clients the help and resourcesto improve their digital skills; and continuedthis year with our Digital Safety campaignwhich aims to heighten awareness andeducate our customers to be digitally safe.Leveraging our data to benefit our customersand clients is a fundamental pillar of ourstrategy. We launched Local Insights,providing consumers, businesses and MPs keyinsights about their local area. We celebrated1 year of our Barclays Identity Service, whichallows consumers to access governmentservices such as tax self-assessment online ina simplified, secure manner.We launched a new online Track SavingsGoals tool available through Barclays FinanceManager, which aims to support customers insetting and reaching their targets.Our Mortgages business has continued tofocus on enhancing the customer experiencethis year, and has won eight awardsa in 2017.We’ve also continued to enhance our CloudItoffering, including allowing customers toaccess their mortgage statements online.Helping our customers and colleaguesBarclays has made significant progress toenhance accessibility this year. Our highvisibility and tactile debit cards aren’t justuseful for the visually impaired - many peoplestruggle to read the numbers on their card so we’ve offered a high contrast design option.We also launched a new larger audioPINSentry device to facilitate easier access toonline banking for customers with dexterityand sight difficulties, enabling them tocontinue to do their banking independently.We have supported customers in vulnerablecircumstances by automating complexprocesses such as registering a power ofattorney.As well as delivering for our customers andclients, we need to ensure we deliver for ourcolleagues too. Our focus on investment intraining, development and coaching as well ascreating new ways to engage and support ourcolleagues continues. Our colleagues’ needsare changing just as those of our customersare, and empowerment, dynamic and flexibleworking as well as improved technology havebeen a strong focus as we develop aworld-class team who put the customer at thecentre of everything they do.“Barclays has always believedin me. The real support hascome from my points ofcontact at the bank. It’s theserelationships that not onlykeep me banking withBarclays, but encourage me,without a shadow of a doubt,to recommend Barclays.”Kieran Miles, Premier CustomerNotes:a Best Lender for first-time buyers with familysupport(Moneywise); Best Lender for Large loans(Moneywise); Best Online Lender (What Mortgage);Best Help to Buy Mortgage Lender- Equity Loan (WhatMortgage); Best Intermediary Lender (MortgageFinance Gazette); Best Overall Lender (MortgageFinance Gazette); Best National Bank (MortgageFinance Gazette); Best Large Loans Mortgage Lender(Your Mortgage)26Barclays PLC Strategic Report 2017 home.barclays/annualreport
Barclaycard Consumer UKOur performance in Barclaycard Consumer UKBarclaycard Consumer UK is a leading credit card provider,providing flexible borrowing and payment solutions to around10 million customers in the UK. We help people move forward,by enabling them to borrow and pay in a way that suits them.We are a responsible lender, providing credit based on credithistory, ability to afford credit and our risk appetite, whiledelivering a market-leading customer experience.Barclaycard Consumer UK offers a suite ofproducts to our customers. Our BarclaycardInitial credit card is aimed at customers whoare looking for a first credit card, or have alimited credit history, and helps them to builda credit profile. Our Barclaycard Platinum cardoffers promotional savings on balancetransfers and purchases for borrowers withgood credit history. Alternatively, shopperscan earn reward points everywhere they shopwith our Barclaycard Freedom Rewards creditcard.The UK credit market continues to experienceconsiderable change, driven by newcompetitors, new technologies, economic andregulatory pressures, and changing consumerexpectations and behaviour. We areresponding by developing new products andservices for our consumers. For example, thisyear we have further diversified our offers tonew and existing customers with the launchof our Barclaycard Platinum travel card, whichhas no non-sterling transaction fees onforeign spend and ATM withdrawals.This year also saw theintegration of BarclaycardConsumer UK with our retailbank to build and grow moresustainable income whilereducing complaints andcreating better customerexperience.We support consumers by providing freecredit scores, and personalised hints and tipson how to become fraud smart. Fraud-relatedactivity is increasing and our research tells usthat customers are increasingly concernedabout how to protect themselves, and look tous to help provide support and information.We developed a digital interactive FraudFighter Tool to help customers understandwhere they are vulnerable and what theycould do to better protect themselves, bygiving them personalised fraud preventiontips.We also launched the Barclaycard Start Todaycampaign, to encourage people to startsomething new that they always wanted todo. So whether it is signing up to thosepottery lessons or buying a bike, Barclaycard isthere for our customers to help them moveforward.The integration of Barclaycard Consumer UKinto Barclays UK has progressed with focus onenhancing the customer experience, as well asleveraging resources, technology and digitalcapabilities.0000home.barclays/annualreport We are continuously looking for ways toimprove the customer experience we deliverThroughout 2017 we focused on reducingcustomer complaints, maintained a stableRelationship NPS and reached new records onseveral transaction NPS, including CustomerService. We are pleased to have won a numberof awards, acknowledging the market-leadingservice we offer our customers. We wererecognised at the Top 50 Companies forCustomer Service Awards, with two awards,Best Extra-Large Centre and Best Social MediaTeam.000000000000Barclays PLC Strategic Report 2017 27
Wealth, Entrepreneurs & Business BankingOur performance in Wealth, Entrepreneurs& Business BankingWithin Wealth, Entrepreneurs & Business Banking, Wealth &Investments serves a spectrum of clients, from those whomanage their own investments and require an executionservice, to those who require a dedicated and holistic servicethrough our Wealth Management services.Business Banking offers specialist advice, products andservices to over 1 million business clients across the UK,helping them to run and grow their business, from start-upsthrough to mid-sized businesses.Wealth & Investments OverviewWealth & Investments is formed of twobusinesses; Wealth Management and SmartInvestor, both of which are supported by ourin-house investment and asset managementcapabilities. Clients of our WealthManagement business benefit from holisticadvice in Banking, Credit, Wealth Planning,and Investments through their dedicatedWealth Manager and access to specialistsacross Wealth & Investments and the widerBarclays UK division. Despite significantinvestment in regulations required, WealthManagement has achieved a strongperformance, and achieved year on yeargrowth in client acquisitions.Smart Investor provides clients access to a widerange of investment products, educationalresources to help build their confidence ininvesting, and tools to assist in planning fortheir future. The focus of the business this yearhas been launching Smart Investor andmigrating over 225,000 existing Stockbrokersclients onto the new platform. This allows ourclients to leave the day-to-day management oftheir investments to our experts, thereby takingthe complexity out of investing.This year, we launched the Multi-ImpactGrowth Fund, the first impact-investingvehicle of its kind from a major UK bank,offering mainstream investors the opportunityto generate long-term capital growth whilemaking a positive contribution to society.Business Banking OverviewOur Business Banking unit provides coveragefor clients across the UK at every stage of theirbusiness cycle in every industry, deliveringdistribution models which match clients’needs and sophistication.This year, we launched our SmartBusinessDashboard and App and now have over12,000 clients benefiting from this uniqueclient experience. With all their key businessdata in one handy place, our business clientsare now spending more time withinSmartBusiness and reaping the benefits.The roll-out of Direct, our unique telephonyrelationship model for small business andstart-up customers, has vastly increased thenumber of conversations and in-depth clientreviews we are able to have, which directlybenefits over 900,000 customers already onthis new, interactive model.In 2017, we supported more clients, reducedaccount opening times, lent more money andgenerated more income than in 2016 throughtargeting sustainable, long term growth. Ouraim in 2018 is to empower our colleaguesthrough continuing to invest in technologyand services.Despite significant investmentin regulations required, WealthManagement has achieved astrong performance, andachieved year on year growthin client acquisitions.Investing in changeThe Multi-Impact Growth Fund invests primarily in specialist thirdparty funds which have been identified and blended by ourexperienced in-house fund and manager selection team. Thesefunds have been chosen as best-in-class based on both theirpotential for strong financial returns and the consideration of theirimpact around key social and environmental issues such as climateor demographic changes. The Fund is the first Barclays product inthe wider impact investing proposition being developed and isavailable to clients in Wealth Management and Smart Investor.28Barclays PLC Strategic Report 2017 home.barclays/annualreport
Barclays UK strives to help people move forward by providing personalised and perfect experiences, delivered by passionate . colleagues. In 2017, we have made significant progress in . PINSentry device to facilitate easier access to online banking for customers with dexterity and sight difficulties, enabling them to
