Scandal-hit banking industry facing talent drain warns Lloyds chief

Soaring distrust of banks and embarrassment about working for one is causing a damaging talent drain, Lloyds chief executive Antonio Horta-Osorio said in a speech at Oxford University’s Said Business School.

The 39 per cent taxpayer-owned lender, which has itself been scarred by a series of scandals including customer mis-selling, said it “urgently” needs to change perceptions of the industry to make it an attractive career.

Since the 2008 financial crisis triggered a wave of bank failures and the part-nationalisation of Lloyds and Royal Bank of Scotland, the banking industry has been hit by a series of scandals.

Lloyds has set aside nearly £7bn to compensate customers mis-sold payment protection insurance (PPI), while the total industry bill for mis-sold PPI is expected to top £15bn.

Banking has also been hit by the Libor rate-rigging scandal at lenders including Barclays and RBS, mis-selling of complex interest rate swaps to small businesses and high bonuses.

Mr Horta-Osorio said the sector must rebuild its reputation to attract young people. He said: “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.”

Lloyds said its research shows 28 per cent of students would be too embarrassed to tell friends they work in a bank.

Only two per cent said they were likely to pursue a career in banking and finance.

Lloyds boss to stand down: Business Tuesday, Page 5.