Lloyds Banking Group has revealed plans to shut another 136 branches, weeks after a policy allowing customers to do their in-person banking across any of its three brands sparked fears that bosses could close up to a quarter of its high street sites.
The move will cut the group’s branch network by a further 15%, accelerating a massive shift towards digital and mobile banking that is core to a five-year strategy being driven by its chief executive, Charlie Nunn.
It will result in the closure of 61 Lloyds-branded sites, 61 Halifax locations and 14 Bank of Scotland branches, and leave the group with 757 branches by spring next year.
Lloyds said the closures reflected customer usage across those 136 branches, and on-site transactions had tumbled 48% on average – and up to 78%, in some cases – over the past five years.
The decision comes weeks after the bank rolled out a new policy allowing customers to use any of its Halifax, Bank of Scotland and Lloyds branches, regardless of which lender they held accounts with. It prompted unions to raise concerns about branch closures and potential job cuts, given that about 25% of the lender’s branches were within close distance of one another, according to a 2023 estimate.
The bank has been trying to find ways to cut palatable ways to cut costs amid ongoing political pressure over the slow demise of in-person banking services. Campaigners fear that the shift is leaving older and more vulnerable customers, who may struggle to bank online, at risk of financial exclusion.
A bank spokesperson said there would be no job cuts as part of the closures, with all staff due to be offered a role at another branch or in another part of the business.
However, it could result in unsuitable working arrangements – including lengthy commutes – that might leave some staff, particularly those with young families or caring responsibilities, unable to accept alternative roles.
The latest series of branch closures has been announced less than a month before the bank presents its annual results on 20 February, during which Nunn is due to give a strategy update as he heads into the final two years of his plan.
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A Lloyds Banking Group spokesperson said: “Over 20 million customers are using our apps for on-demand access to their money and customers have more choice and flexibility than ever for their day-to-day banking.
“Alongside our apps, customers can also use telephone banking, visit a Community Banker or use any Halifax, Lloyds or Bank of Scotland branch, giving access to many more branches. Customers can also do their everyday banking at over 11,000 branches of the Post Office or in a banking hub.”
