The case of Lloyds TSB Bank: CONCISE HISTORY OF LLOYDS TSB BANK PLC

The case of Lloyds TSB Bank: CONCISE HISTORY OF LLOYDS TSB BANK PLC

The historical background of Lloyds is summarised in Table 1. In the last two decades the financial services sector has experienced fundamental changes. Financial institutions are facing increased competition, deregulation, consumer demand and rapid development in technology; therefore, marketing managers are forced to rethink their marketing activities to sustain competitive advantage. To maintain its stability and growth, Lloyds entered the student segment by providing a student account, but the OSA process was not fully investigated. Therefore, this study focuses on the operation of the process.

Table 1 Historical background of Lloyds Bank

Dates

Events

1765

The origins of Lloyds Bank stretch back to 1765, when John Taylor
and Sampson Lloyd set up a

private banking business in Birmingham

1852

Lloyds’ association with Taylor was dissolved

1865

The partnership changed its status to a joint stock company, naming
itself ‘Lloyds Banking

Company Ltd.’ A period of rapid growth followed. This was largely
through mergers with two

large domestic banks (Wilts & Dorset Bank, with around 100 branches
in 1914; and Capital &

Counties Bank, with 473 branches in 1918), and also through
acquisitions of several small

banks. The result was that Lloyds had become a powerful banking
force in the Midlands by the

1911

I880s

Due to domestic pressures (eg post-WW1 economic depression), Lloyds
begins to pursue a

strategy of international expansion. This is in addition to its
presence in France through the

acquisition of Armstrong & Co in 1911. This was achieved through
mergers (eg London &

Brazilian Bank in South America, 1923) and acquisitions (eg London &
River Plate Bank in

South Africa, 1918)

1960s

Following the failure to acquire Martins Bank, Lloyds planned a
progressive ‘group’ concept.

This was intended to help Lloyds withstand the growing pressure from
American banks

entering its domestic markets, and also to promote further expansion
overseas. By 1971 Lloyds

Bank had achieved a truly international presence, with offices in
nearly 50 countries

1980s

Market dynamics caused by competition, deregulation and
technological push had forced

Lloyds Bank to make fundamental changes to their corporate strategy
that focused on

shareholder value: Lloyds Bank divested itself of businesses such as
its investment banking

arm, and focused on the far more profitable retail banking sector in
the UK

1988

Lloyds Bank merged five of its businesses with the Abbey Life
insurance company to create

Lloyds Abbey Life Plc. This expanded Lloyds’ growing insurance
business

1995

Lloyds acquired Cheltenham & Gloucester in a move to expand its home
mortgage business

1996

Lloyds merged with the Trustee Saving Bank (TSB), to form Lloyds TSB
Plc. This expanded

Lloyds’ customer base and their product portfolio

1999

In a bid to strengthen its life assurance business, Lloyds acquired
Scottish Widows. This made

Lloyds the second largest provider of life assurance and pensions in
the UK

Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

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