Our strategic framework

Our vision is to become our customers’ favourite bank; one that delivers its very best, challenges convention and opens doors that others can’t.

Select each of our five strategic priorities below to find out more about our goals and the progress made in 2018.


Our goals

2018 Progress

Grow profitable loan origination in key markets

  • Deliver strong end-to-end propositions in target markets

  • Deliver incremental, non-organic business

  • Invest in highly responsive, customer-focused culture

  • Innovate to secure sustainable long-term market leadership

  • Buy-to-Let/SME origination up 15% to £2.8bn
  • £223m originations in commercial lending through our InterBay brand
  • Established InterBay Asset Finance business
  • Received multiple awards including Best Specialist Lender (Mortgage Strategy Awards) and Best Specialist Mortgage Provider (Moneyfacts Awards)
Looking forward Key risks KPI
  • Focus on organic growth in our target sub-sectors
  • Further develop commercial lending opportunities
  • Further enhance our proposition in residential lending in light of the opportunities under IRB
  • Build on the successful pilot into bridge finance and cautiously grow InterBay Asset Finance
  • Identify new market sub-sectors with high returns on a risk-adjusted basis
  • Market conditions affecting long-term demand
  • Increased regulatory pressure
  • Continued political and economic uncertainty
  • New specialist lenders entering the market

Net loan book £9.0bn


Our goals

2018 Progress

High quality decisions protecting the business

  • Skilled manual underwriting supported by clever technology

  • Deliver a quality, differentiated service supported by highly responsive decision-making

  • Clear decisions recognised by intermediaries for their quality and fairness – a critical friend

  • Integrated underwriting across all brands

  • More than 48,500 loans totalling £11.0bn originated since the Bank’s creation in 2011 with only 206 cases of arrears over 3 months, with an aggregate balance of £53.5m and an average LTV of 62%
  • Transactional Credit Committee met twice a week in 2018 to assist with more complex or larger new mortgage applications
Looking forward Key risks KPI
  • Identify additional technology to support decision-making
  • Continue training and coaching to further strengthen the underwriting expertise of our team
  • Maintain focus on consistent decision-making outcomes
  • Find ways to be even more responsive to intermediaries and borrowers whilst remaining a critical friend
  • Changing regulation for underwriting
  • More complex underwriting requirements
  • Difficulty in recruiting experienced staff
  • Increasing intermediary demands
  • Demands of ever-changing technology

Loan loss ratio 10bps


Our goals

2018 Progress

Increase partner reach in response to demand

  • Access to specialist products developed by listening to intermediary partners

  • Be accessible and available to intermediaries

  • One distribution model

  • Gain intermediary recognition for delivering sustainable proposition

  • Deliver bespoke solutions to meet intermediary and customer needs

  • Choices programme had another successful year increasing retention rates in 2018
  • Restructured relationship team to increase levels of engagement
  • Attended c. 170 intermediary events across our target geographies
  • Enhanced marketing and brand support for intermediaries
  • Published periodic market leading Buy-to-Let Britain’ reports
Looking forward Key risks KPI
  • Develop enhanced intermediary education programme
  • Continue to deliver direct relationships with high quality intermediaries
  • Deliver deeper relationships with more of our target intermediaries
  • Deliver best in class service performance as we grow and enter new market sub-sectors
  • Loss of key broker relationships
  • Competition reducing pricing below OSB’s risk-adjusted return appetite
  • More complex underwriting requirements slowing the process

Gross new lending £3.0bn


Our goals

2018 Progress

Stable, high quality funding platform

  • Be primarily funded through attracting and retaining a loyal retail savings customer base
  • Provide access to our service for customers through their channel of choice
  • Ensure liquidity requirements are met through the economic cycle

  • Deliver a proposition offering transparent, straightforward savings products, providing long-term value combined with excellent service levels

  • Gained c.40,000 new savings customers
  • Achieved 95% customer retention
  • Received multiple awards for savings products including Savings Account Provider of the Year
  • Loan to deposit ratio of 93%11

1. Excluding impact of TFS and ILTR drawdowns.

Looking forward Key risks KPI
  • Enhance service proposition by investing in technology for digital transformation
  • Continue to invest in and diversify distribution channels from branches to digital
  • Broaden savings propositions further to include wider savings needs
  • Increased competition for retail funds
  • Increased customer expectation for technology compared to difficulty and cost of delivery
  • Increased burden of regulatory compliance – for example, Open Banking (which currently does not apply to OSB)

Customer NPS +63


Our goals

2018 Progress

Best in class customer service

  • Customer service at the heart of everything that we do

  • Extend activity in OSBIndia, developing high quality areas of excellence

  • Deliver cost efficiencies through excellent process design and management

  • Investments in training and process development contributed to enhanced customer NPS of +63
  • Increased OSBI headcount by 20% to 440
Looking forward Key risks KPI
  • Extend measurement by benchmarking to best in class
  • Introduce robotics technology and improve workflows to further enhance primary servicing
  • Increase change capacity through enhanced end-to-end project management capability
  • Difficulty in continuous service improvement as OSB grows
  • Global economic uncertainty increasing costs in India
  • Increasing complexity from compliance with changing regulation
  • Lack of operational resilience due to rapid growth

Cost to income ratio 28%


Our business model

Find out more about our business model

Our brands

Find out about each of our trading brands