Oxford: Banking's reputation is damaging ability to recruit graduates, says Lloyds Banking Group

In a speech at Oxford University’s Saïd Business School, António Horta-Osório, chief executive of Lloyds Banking Group, stressed that the banking industry urgently needs to address young people’s perception of banks. 

He candidly discussed the reputational impact of the financial crisis and illustrated how that is having a negative impact on the banking industry’s ability to recruit young people.

The speech coincided with research* from Lloyds that reveals a potential talent drain as banking's negative reputation impacts on recruitment:

• Over one quarter of students (28%) surveyed would be too embarrassed to tell friends if they were going to work in a bank.
• 41% of students responding to the survey distrust banks and financial services providers and 56% trust banks less than they did five years ago.
• Respondents were more likely to choose a career in the public sector (26%) than banking/financial services (2%).
• One in every two students questioned (58%) thinks that an organisation’s reputation will influence their career decision.

Commenting on the research Horta-Osorio said: “We need to take steps as a sector towards rebuilding our reputation through how we behave and what we do. In tandem with this we urgently need to address the perception of banking as an attractive career opportunity for young people.

"The next generation should see banking as an industry that helps to build economic wealth and is playing its part as a useful member of our local communities. We want the best and the brightest to see banking as a credible career choice. This is vital for the industry’s long-term viability.”

Horta-Osório also set out how Lloyds is committed to helping change perceptions of the industry:

• The Group has given the UK's largest commitment to support first-time buyers, lending £6.5 billion to help customers take their first step onto the property ladder in 2013.
• Pledging to keep its net lending to SMEs positive in 2013, year-on-year net growth in advances to SMEs was 4% as at the end of March 2013. This is in contrast to a net reduction in SME lending of 4% across the industry as a whole.
• With the largest branch network in the UK, the Group has committed to keeping the same number of branches in its network for three years.
• Serving over 30 million customers through one of the largest branch and fee free ATM networks in the UK, it has pledged not to close a branch if it is the last one in a community.
• The Group has kept its community investment at £85 million for the past two years and has committed to this sum for the period of its strategic plan.

*All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1016 Students aged 16+. Fieldwork was undertaken between 29th April - 3rd May 2013.