Change your business address
If you're a full access user, you can update your business, registered, mailing and personal addresses within Online for Business and the Business banking app.
Achieving operational excellence in schools and trusts; why payments are a crucial piece of the puzzle
Everyone knows that schools and education trusts are having to do more with less. In this article we explore how schools and trusts can improve efficiency and control with smarter payments.
Read time: 6 mins Added: 04/06/26
Managing change
The cost of everything from energy to supplies and maintenance continues to increase, while funding struggles to keep up. Against this backdrop, anything that schools can do to make their money go further will be more than welcome.
We know that schools are resilient and adaptable; always working to make the most of their resources as they strive to deliver the best possible outcomes for their children and young people. But we also know that change can sometimes be disruptive and destabilising for organisations of all kinds.
However, change doesn’t have to mean an overnight revolution, where widespread transformation brings the potential for disruption and resistance. An approach focused on evolution, with smaller changes over time that achieve ongoing incremental improvements, can be just as effective.
Progress on payments
We recognise that when considering the Operational Excellence Framework in full, there’s a lot to take in.
So, one approach is to break it down into bite-sized chunks by reflecting on the current approach to a specific function rather than trying to change the whole operation overnight. And one area where Lloyds can bring its experience is reviewing parts of the financial functions.
It’s an area where digitisation and automation are continuing to transform the ways schools and trusts manage their finances, boosting efficiency and accuracy, saving time and reducing risk. In particular, modern payment technologies are transforming the way schools and trusts manage their finances.
Traditionally, managing and processing payments has been one of the most labour-intensive functions for accounts teams, presenting a real opportunity to streamline. From payroll and purchasing supplies to one-off exceptional payments, payments can be transformed from a tedious and time-consuming paper-based chore to a simple and straightforward exercise.
It’s a shift that our nationwide network of experienced Relationship Managers can support, having worked with schools and academy trusts across the country to help solve broader challenges beyond day-to-day banking.
Clarity and control
We can provide a range of secure web-based solutions that provide simpler and faster ways to make and take payments, providing clarity and control over reconciliation and receipt collection. That’s especially important for trusts which have a centralised accounts team that oversees day-to-day spending at multiple schools and academies, which can be spread over a wide geographical area.
Corporate Cards, for example, provide a range of simple payment options for buying in supplies, services, travel and more, helping streamline processes, drive efficiency, strengthen governance and provide transparency. They offer visibility and control over all outgoings, so you always know how much is being spent and who by.
Account teams can apply spending limits and restrict cards’ use to certain suppliers, which can easily be remotely changed if required, providing more flexibility and convenience for both cardholders and finance teams.
And we’re not just talking about plastic cards which can create reconciliation issues when finance teams only find out about purchases after the event, as well as presenting the risk of being lost, stolen or passed around.
Virtual cards, which can be created instantly for a specific transaction, can provide a more secure, controlled and easily reconciled payment solution. They’ve proved popular in the education sector because they can offer stronger governance and real‑time oversight, while also minimising the administrative burden on finance teams.
Across the board efficiencies
Lloyds Commercial Card Data Management platform enables cards to be managed online, providing an overview of balances, statements, outstanding authorisations and card spend.
Automated VAT compliant reporting and online expense management can transform the monthly reconciliation process from a time-consuming chore to a quick and simple assignment. It has enabled schools to move to a single account settlement, significantly reducing the number of transactions that require reconciliation and generating efficiencies across the board.
Not only that, cash can be held in an interest-bearing account for longer, helping to boost working capital and maximising income generation. Ultimately, optimising financial systems allows everyone to devote more time to more productive activities for the benefit of schools, their staff and their pupils.
So, what’s the first step? Schools and trusts can benefit from reviewing their internal processes to identify any inefficiencies and opportunities to improve how goods and services are procured. The ISBL Operational Excellence Framework (PDF, 724KB) can help inform this process, and a Lloyds Relationship Manager can work with you to identify payment solutions to improve cash flow and reduce administrative workload.
By embedding this approach, at a pace that is right for your organisation, improvements can naturally follow.
You may also be interested in
All lending subject to status. Eligibility criteria apply.