Lloyds Banking Group has announced that customers will have more choice than ever before amid the closure of 136 branches.
The planned closures include 61 Lloyds, 61 Halifax, and 14 Bank of Scotland branches and will occur between May 2025 and March 2026. Staff from these affected branches will be offered roles at other branches or in another part of the group’s business.
Lloyds has attributed these closures to a shift in customer preferences, with more customers using apps and online banking because it is faster and more convenient. According to the banking group, over 20 million people are now using its apps, which lets them access support whenever.
The aforementioned branches set to close have also seen a significant decline in use. On average, transactions in these branches have reduced by 48%, with some reporting a decline of 78% over the last five years.
Lloyds has also seen this trend on a broader scale, with transactions across all branches in 2024 declining by 10,000 compared to 2023. Nonetheless, many consumers as well as the government expressed concern at the shrinking of the UK retail banking sector over recent years.
Despite specific locations closing, Lloyds asserts that customers who prefer to bank in person still have various options. Customers will now be able to visit a Community Banker, the Post Office or a Banking Hub and can now use branches of any of the group’s brands for in-person banking.
This will mean that Lloyds, Halifax and Bank of Scotland customers will have access to 757 branches, which is nearly double the amount they would have had access to once all announced closures were complete.
A Lloyds Banking Group spokesperson stated: “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.”
Last September, the Labour government committed to opening 350 new banking hubs across the UK over the next five years. This was in reaction to the number of branches closing, creating “banking deserts”.
The UK has seen over 6,000 bank branch closures since 2015, with Consumer watchdog Which? reporting that 60% of the country’s retail banking network has declined in the past nine years.