Tag: Lloyds Bank

Consumer spending on holidays and  socialising on the rise 

• Lloyds Bank data unearths how different generations and regions spend on  making memories 

• Non-essential spending on holidays, restaurants and recreation rising

• Non-essential spending increase is slowest in London  

• Gen Z holiday spending growing quicker than Millennials and Generation X 

Non-essential spending in the UK is on the rise despite the cost-of-living crisis,  according to data from Lloyds Bank. 

Every region in the UK, including Scotland, Wales and Northern Ireland, is spending  more on non-essentials like holidays, restaurants and recreational activities but  London is the slowest-growing region for this type of spending. 

Lloyds Bank has revealed the data following the launch of its new credit card, the World Elite Mastercard®, which enables customers to earn cashback on every card purchase  made, alongside enjoying a range of travel benefits. 

With millions of customers across the UK, Lloyds Bank touches nearly every  community and household in the country. The analysis, based on card spending of  the bank’s customers, provides live insight into the state of the nation. 

Non-essential purchases – like holidays and restaurant spending – have been in  positive growth, year-on-year, since May 2021.  In 2023 alone, year-on-year non-essential spending has grown more than 3% every single month, peaking at a 10% increase in January.  

The data indicates the trend is largely being driven by wanderlust – particularly  amongst the over 65s, who have increased spending in this category by 21% in  October. Millennials (people aged 25 to 34) meanwhile, are displaying the slowest  growth among generational holiday spenders year-on-year, up 11.8%, while Gen Z  consumers (aged 18 to 24) have seen holiday spend grow 16.9% over the last  year. 

Taking a regional view, consumers in Wales are leading the charge in holiday spending – up by more than a fifth compared to last year (21.6%), while Scottish  holidaymakers and those in the South West have increased travel card spending  by 19.5% and 19.1% respectively.  

Spending from people living in London shows the slowest growth at 12.5%, with  those in the North West spending 16.5% more year-on-year.

Overall, year-on-year holiday spending is up 17.1%, restaurant spending is up 6.2% and recreational  spending is up 3.3%. 

Looking at regional growth around non-essential spending more broadly, you see London showing the  slowest growth – up just 1.8% compared to the previous year. 

Meanwhile, consumers in Yorkshire and the Humber, which is the fastest-growing region, spent more  than 6% on non-essentials when compared with the previous year and Scottish consumers also spent over 5% more. 

The data also shows that spending on restaurants and going out to socialise account for the biggest non essential spending growth across all generations and all regions across the UK in October. 

Marc Lien, Credit Cards Managing Director at Lloyds Bank, said: “Despite understandable concerns  around the cost-of-living crisis, people still want to socialise and have a holiday to look forward to.

“We’ve  come through a challenging few years, and it’s positive to see that consumer spending is on the rise.  

“After listening to our customers it’s clear that spenders up and down the country want more from their  credit and debit card providers, and this is more important than ever at times like these – that’s exactly  why we launched the Lloyds Bank World Elite Mastercard®, to provide better, more easily accessible rewards. 

“The new Lloyds Bank World Elite Mastercard® offers cashback on every card purchase – no matter how big or small – and great benefits for travellers, including the luxury of skipping airport security queues and  access to over one thousand airport lounges worldwide.” 

Customers using the World Elite Mastercard® will earn 0.5% cashback on each card purchase up to and including £15,000. When total card spending reaches over £15,000, each card purchase will earn 1% cashback, paid into the account each month. 

World Elite Mastercard® customers will also receive benefits which add a touch of luxury when travelling: 

o Access to over 1,300 airport lounges, including lounges at London Heathrow, Edinburgh  International, Orlando International, Dubai International and many more, through Priority Pass. (Owned and operated by Collinson.) 

o Cardholders will be able to skip airport security queues and upgrade their airport security  experience at participating airports, powered by DragonPass. 

o Direct access to Mastercard’s priceless.com experiences and content in the UK and around the  world. 

World Elite Mastercard® also provides one additional cardholder with all the card benefits at no extra cost to the initial £15 per month.

Cashback earned by the additional cardholder will be added to the main  cardholder’s running total, and will be included in the monthly cashback payment made to the account. 

The main cardholder will be able to view or manage their World Elite Mastercard® and travel benefits  through online banking and the mobile app.

Uptick in Scottish business confidence

Bank of Scotland Business Barometer

  • Business confidence in Scotland rose four points during February to 14%
  • Scottish businesses identified their top target areas for growth in the next six months as hiring new employees (43%), introducing new technology (31%) and evolving their offer (30%)
  • Overall, UK business confidence remained positive in February at 21% and 31% of firms reported feeling positive about their own trading prospects for the year ahead

Business confidence in Scotland rose four points during February to 14%, according to the latest Business Barometer from Bank of Scotland Commercial Banking.

Companies in Scotland reported lower confidence in their own business prospects month-on-month, down one point at 7%.  When taken alongside their optimism in the economy, up eight points to 20%, this gives a headline confidence reading of 14%. 

Scottish businesses identified their top target areas for growth in the next six months as investing in their team (43%), introducing new technology (31%) and evolving their offer (30%).

The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.

A net balance of 1% of businesses in the region expect to reduce staff levels over the next year, down 15 points from January when a net balance of 14% of businesses planned to create new jobs.

Overall UK business confidence decreased by just one point to 21% in February. Firms remained positive about their own trading prospects with a net balance of 31% expecting business activity to increase in the coming 12 months.

Firms also reported plans to create new jobs with 20% of businesses intending to make new hires over the next 12 months – up three points from January.

All UK regions and nations reported a positive confidence reading in February, with six areas reporting a month-on-month increase in confidence. Of those, the West Midlands (up 30 points to 48%) and Yorkshire and Humber (up 22 points to 34%) saw the largest monthly increases.

Chris Lawrie, area director for Scotland at Lloyds Bank Commercial Banking, said: “After a dip in confidence in January, it is good to see that businesses are once again feeling optimistic about their own trading prospects and the wider economy.

“However, rising costs, supply chain challenges and skills shortages are still affecting several key sectors across the country. As firms grapple with these challenges it’s easy for attention to pull away from seizing opportunities for growth.

“Firms that keep a close eye on cash flow and manage their working capital will be best placed to take on any unforeseen challenges and go after prospects in the months ahead.”

Retail confidence bounced back, rising for the first time in three months to 21% (up 14 points), led by improvements in both trading prospects and economic optimism. However, business confidence fell in construction (down eight points to 19%) and services (down five points to 20%) although this remains higher than in the latter part of 2022.

Scotland only: Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said:  “While overall confidence has dipped slightly, it’s encouraging to see businesses backing their own trading prospects. This may well be down to the easing of cost pressures as we see the prices of commodities such as oil and energy coming down. At the same time, with pay expectations easing, this may be giving businesses the boost they need to weather the rest of the year.”

“As we move further into 2023, focusing on growth and investment should be key for businesses across the sectors, while ensuring that margins and cash flow are also prioritised.”

Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “Business confidence has lost a little momentum this month, following the strong gains seen recently. Firms are feeling more cautious about the wider economy. However, confidence in their own trading prospects continues to strengthen, helped by tentative signs that wage and other cost pressures may be reducing.

“While inflation appears to be tapering, pressures on consumers will need to ease further to help make it a more stable environment for businesses to operate.”

Scottish businesses set to benefit from new specialist finance support

Lloyds Bank has appointed Jamie Kemp to the role of Invoice Finance Area Director for Scotland and the North East, as it strengthens its support for businesses across the region.

Jamie has over 11 years of experience in the finance sector, with experiencing spanning across retail, private and commercial banking. Over the last 4 years, Jamie has specialised in Invoice Finance and has been recognised by UK Finance as their Top Foundation and Certificate student.

In his latest role, Jamie held the title of Business Planning Manager for the Invoice & Asset Finance Sales division where he was responsible for overseeing and supporting national delivery and performance.

Jamie Kemp commented: “I am delighted to lead a team of highly experienced Invoice Finance professionals to deliver bespoke solutions for small to medium sized enterprises. The current climate is making the cost of operating more and more challenging for businesses.

“I’m looking forward to supporting those businesses based in the North East and Scotland through these challenging times as much as possible in my new role alongside my team.”

Ben Stephenson, the Head of Specialist Client Solutions at Lloyds Bank, added: “We are pleased to welcome Jamie into the role of Invoice Finance Area Director. He brings with him a wealth of banking and finance experience, which will stand him in good stead to excel in this role and provide exceptional service for our clients.”

While starting his new role, Jamie is also hiring for an Invoice Finance Field Sales position (Associate Director level) based in and around Glasgow. The role has been designed to attract enthusiastic and talented individuals which may be new to the Invoice Finance industry.

It offers a substantial period of training, supported by a comprehensive learning plan, which includes undertaking the Invoice Finance Foundation Course, UK Finance’s entry-level qualification. This should ensure that the successful candidate has the best possible start to a career in Invoice Finance.

Scottish business confidence rebounds in September …

… but that was before the Tory Mini-Budget!

Lloyds Bank’s Business Barometer for September 2022 shows:  

  • Business confidence in Scotland rose 10 points during September to 15% 
  • Scottish firms identify top growth opportunities as investing in their teams (39%), evolving their offering (38%) and diversifying into new markets (34%)
  • Overall UK business confidence remained the same as last month at 16%, with only three out of 11 nations and regions reporting a higher reading than August

Business confidence in Scotland rose 10 points during September to 15%, ending three consecutive months of decline, according to the latest Business Barometer from the Bank of Scotland Commercial Banking – conducted between 1st-15th September, before the Chancellor’s economic announcement.

Companies in Scotland reported higher confidence in their own business prospects month-on-month, up 18 points at 33%.  When taken alongside their optimism in the economy, up two points to -4%, this gives a headline confidence reading of 15%. 

Scottish businesses identified their top target areas for growth in the next six months as investing in their teams (39%), evolving their offering (38%) and diversifying into new markets (34%).

The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.

A net balance of 18% of Scottish businesses expect to increase staff levels over the next year, up eight points on last month.

Overall UK business confidence stayed the same as in August during September at 16%. Despite the net balance of businesses planning to create new jobs increasing by one point to 17%, firms’ outlook on their future trading prospects dropped one point to 25%, and their optimism in the wider economy also fell by one point to 5%.

Three UK regions and nations recorded a month-on-month increase in optimism in September. Along with Scotland, London (up 12 points to 33%) and the South East (up 15 points to 15%) both reported higher confidence readings, with London now the most optimistic region overall. Only Wales (down five points to -4%) recorded a negative overall confidence reading in the last month.

Chris Lawrie, area director for Scotland at Bank of Scotland, said: “It’s encouraging to see business confidence in Scotland back on the rise, despite the myriad of economic headwinds the country’s firms continue to face.

“It’s also pleasing to see businesses here planning to invest in their people and continue to evolve the services they offer as they target new opportunities to grow. At this challenging time, companies must also keep a close eye on cash flow to help mitigate any major turbulence ahead and ensure they’re ready to capitalise on opportunities to scale up as they arise.”

Business confidence rose by two points in both the retail and service sectors (15% and 17% respectively), however both these figures are close to 12-month lows. Manufacturing and construction firms saw their lowest levels of business confidence this year, down two points in manufacturing to 14% and down 16 points to 10% in construction. This was driven by overall falling optimism in the economy.

Scotland only: Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “Firms should take heart that nationally, business confidence has stabilised, while recognising that wage pressures may continue for some time.

“However, it is important to note that this data was collected ahead of the recent Fiscal Statement and the current market volatility, where the effect on confidence will be seen in next month’s data.

“Keeping a watchful eye on out-goings, especially energy bills as we head into the winter months, will ensure businesses are in the best possible position and right now businesses will be taking on board what the currency position means for their business models.

“While capital and cash flow management are undoubtedly vital during this time, we would encourage businesses to reach out to their networks for support if they find themselves struggling. At Lloyds we remain by the side of businesses to help deliver the support firms needs to navigate these challenging times.”

Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “It is encouraging to see business confidence stabilising after a three-month decline.

“Firms’ assessment of their own trading prospects also remained steady and continues to show some resilience during turbulent times. Yet, cost pressures remain, as more businesses look to raise prices to help protect their margins while wage pressures show little sign of abating at this stage.

“With the recent volatility in financial markets as well as the Government’s Growth Plan and energy cap announcements, it will be interesting to see how these measures affect business confidence.”

Locked out before Lockdown

One in four Scots lack basic digital skills

One in four people in Scotland were unable to use the internet by themselves prior to lockdown, lacking the basic skills required to communicate, shop or bank online, the latest Lloyds Bank Consumer Digital Index (CDI) has revealed.

Technology is now a necessity for keeping connected, working remotely and accessing vital information. Research carried out before the introduction of lockdown restrictions showed three in ten (28%) of those surveyed in Scotland lacked the digital skills needed for everyday life, with 18% unable to connect a device to a Wi-Fi network, and 15% unable to turn on a device and log into accounts or profiles they have.

However, in a separate poll carried out after lockdown measures were introduced, more than a third (35%) of people said they have now taken action to boost their digital skills for work, health and well-being during the crisis. 

Philip Grant, Chair of Lloyds Banking Group’s Scottish Executive Committee, said: “During this unprecedented time, it’s encouraging to see so many people taking the time to learn new skills with the help of family and friends.

“Learning to use more online services will not only be hugely useful during lockdown, but also for the future too, both in the home and workplace.

“Across Scotland we have many remote communities and digital skills are essential to keeping businesses operating smoothly and helping people to stay in touch.

“We hope that by helping to each other to improve our digital know-how, whether by informal training, or more structured courses like those on our Lloyds Bank Academy, we’ll all be well placed to benefit from being online in the years to come.”

Even before lockdown, people in Scotland with high levels of digital engagement recognised the benefits of these skills, with eight in ten (81%) saying it helps them stay connected to friends and family, two fifths (43%) say it improved their ability to get a job, and more than a third (37%) reporting it helps manage and improve their physical and mental health.

Up-skilling in lockdown

In the last few weeks of UK lockdown, more than eight in ten (83%) of people surveyed in Scotland believe that the situation has escalated the need to be online and almost nine out of 10 people (85%) have felt that technology has been a vital support during the outbreak.

One in three (35%) across Scotland have taken action and boosted their digital skills, with almost a third (31%) reporting they have up-skilled for work reasons, while two fifths (41%) are using technology more than usual to help with health and wellbeing.

Of those who have improved their skills, over half (59%) are self-taught, nearly a quarter (23%) are calling upon family members for support and one in five (19%) are relying on friends.

Two fifths (40%) of people in Scotland have also helped other people improve their digital skills during this period. Staying in touch with others is the most popular reason to ask for help, with almost two thirds (65%) of people helping their family members to use apps such as Zoom or WhatsApp. This is followed by banking and shopping cited by a fifth (19%) of people.

Encouragingly, more than half (58%) of people in Scotland want to continue to boost their skills beyond the current climate, with a fifth (19%) having used the time at home to do online learning to improve digital skills.

Stephen Noakes, Managing Director, Retail Transformation, Lloyds Bank, said: “The impact of lockdown has brought into sharp focus just how important digital skills are, when all of a sudden it may be the only way for some people to stay connected to loved ones, buy food or get hold of other essential items such as medicine.

“While this unprecedented situation may have a greater impact on those who remain digitally excluded than those who are online, it is encouraging that this has focused people’s attention on digital capability as a vital life skill.

“We and many others have responded to this with extra support, including free training through our Academy, but more needs to be done to close the digital divide.” 

Helping to address the digital divide

The latest Consumer Digital Index also shows that without any intervention, by 2030, a quarter of the UK will still have a very low level of digital engagement.

To help people up-skill Lloyds Bank is running online digital skills training via the Lloyds Bank Academy.

Free webinars are held each week providing access to digital experts, training on key skills and opportunities for virtual networking to support individuals, local businesses and charities. Everyone can access free online resources at www.lloydsbankacademy.com.

In addition, through a new partnership with WeAreDigital, a specialist phone line has been introduced to help up to 20,000 customers access the internet and learn new skills to help with everyday digital tasks such as online shopping and connecting virtually with family and friends, as well as online banking.

Over 20,000 of the Group’s Digital Champions are also using online volunteering platforms and telephone services to help the most vulnerable in society during this difficult time.