Lloyds Banking Group is to close a further 136 branches by March next year, following data that shows customers are increasingly using digital channels for everyday transactions.
It comes as the bank is still working through previously announced plans to close branches. The latest round will see 61 Lloyds, 61 Halifax and 14 Bank of Scotland branches begin closing from May.
The bank says face-to-face transactions across affected branches fell by an average of 48% over the past five years. The plans will bring the Lloyds brand down to 386 branches, Halifax down to 281 branches and Bank of Scotland to 90 branches once completed.
Streeter: cashpoint access all more vital
Susannah Streeter, head of money and markets, Hargreaves Lansdown said: “Lloyds is swimming with a fast-moving tide by closing yet more banks. It may have a focus on traditional lending, but the vast majority of customers no longer have any need to go in store for loans or mortgages . Branches have fallen like dominos, as users have shifted online.”
She said Lloyds was trying to stay lean as it deals with a few cyclical headwinds. Mortgages issued during the pandemic are coming up for renewal at less profitable levels. There’s also an ongoing impact from consumers shifting to longer-term savings accounts in search of better rates.
“Keeping the lights on and tills staffed for few customers at a time is an expensive endeavour, especially with wage costs going up. But provision for more vulnerable clients who find online banking harder to access money still needs to be made,” she said.
“Crucially, there needs to be enough cashpoints to serve the local community. Under new FCA rules banks and building societies must assess whether changes to local services, like closing branches or cash machines, leave local communities lacking ways to take out or pay in cash.
“Any residents, businesses or charities who believe their access to cash is sorely lacking in their areas can request a review. If LINK, the UK’s main ATM network believes there is a hole in provision, additional cash services will need to be provided, either through a banking hub, post office or an ATM.’’
A spokesman for Lloyds said customers still had plenty of choice, adding: “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.”
