Barclays 2013 Annual Report Download - page 11

Our business model
Barclays seeks to satisfy the needs of our customers and clients by
offering a rounded value proposition – a full range of products and
services – and thereby, we aim to achieve a smoother income stream
and sustainable returns.
Barclays’ competitive advantage is created by the scale and diversity of
our businesses and the quality, character and relationships of our
people.
Our Retail and Business Banking businesses operate through a regional
model, focusing on delivering targeted solutions to individuals and
small businesses. We operate retail banks in UK (UK RBB), Africa (Africa
RBB), and Europe (Europe RBB).
Barclaycard, Investment Bank, Corporate Banking and Wealth and
Investment Management operate in global models, leveraging their
offerings to provide comprehensive solutions across borders.
We are increasingly operating a shared service model for Central
Functions. Improved ‘functionalisation’ has allowed us to take
advantage of synergies through the sharing of ideas and collaboration
from cross-functional working groups.
The sum of the parts
Our business model enables us to maintain relevance to our customers
and clients, whatever stage of life they are in. For example, this means
being ready to help business owners launch a business, fund its
growth, expand internationally, and protect against currency risk. For
individuals, our model can provide a safe place to store savings, help a
first-time buyer make their first steps onto the property ladder, create
an investment portfolio as wealth grows, or provide cross-border
advice for the affluent.
We seek to add value to our clients through our end-to-end network,
for example an individual retail customer in the UK is able to access
current and savings account balances along with Barclaycard data all
on the same mobile banking app. Pingit, our peer to peer payments
service, is seamlessly integrated within our retail banking offering, a
further example of this joined up approach to the way we do business.
Our international reach and scale means we have the responsibility,
indeed obligation following our designation as a Global Systemically
Important Financial Institution, to work together with our regulators to
de-risk the industry and provide a more sustainable banking landscape
over the long term. We are actively engaging with UK, EU, and US
banking supervisors to develop a new model for the industry and to
ensure our business is sustainable and flexible – ready for the future.
Group overview 02
Chief Executive’s strategic review 04
Strategy and operating environment 06
Business model/Value creation 08
Balanced Scorecard 10
Group Finance Director’s review 12
Strategic Risk overview 14
Performance review by division 18
Chairman’s governance overview 46
Summary remuneration report 48
Our business model is the mechanism
for delivering our social purpose. As
such, in this section, we outline how
the Group delivers services to our
customers, how we make money on
those services, and how our model and
approach differs from our competitors.
Meeting customer and client needs
Our value proposition
Our customers and clients are at the centre of our goal
and purpose and we seek to become their ‘Go-To’ bank
both through the excellence of our products and services
and also through the way in which we do business.
As we continue to transform Barclays, we believe we can
become the bank of choice for all of our stakeholders.
Financial
Institutions
and Banks
Individuals Small and Medium
size businesses
Corporates Sovereigns
and Institutions
A safe place to
save, invest, and
manage cash
Current accounts and overdrafts
Savings, deposit and investment products
Mobile and digital payments
Access to global financial marketsStockbroking and trading services
Cash management, payment systems, and international trade services
Funds for
purchases and
growth
Residential mortgages,
consumer loans and
credit cards Asset and lease finance, trade and supplier finance and working
capital solutions
Global capital markets
Commercial mortgages and business loans
Large corporate and inter-bank lending
Management
of business and
financial risks
Foreign exchange rate hedging
Relationship managers and support
Fixed rate loans
Inflation and interest rate hedging
Financial and
business support
Wealth Advisory and
Private Banking
services Business seminars
and start-up
accelerator space
Global investment research and advice on mergers & acquisitions
barclays.com/annualreport Barclays PLC Annual Report 2013 09
The Strategic Report Governance Risk review Financial review Financial statements Shareholder informationRisk management