Lloyds Banking Group has announced the closure of 292 branches between 2024 and 2025. This decision will also impact Halifax and Bank of Scotland, which are part of the same group serving over 27 million customers.
In the past nine years, more than 6,000 banks have shut down, leaving some rural areas without access to cash services. The trend of branch closures is expected to continue as more customers opt for online and mobile banking over visiting physical branches.
Lloyds revealed that only 8% of its customers use high street branches for banking, while 21 million rely on digital banking services. Despite this shift, banks are still viewed as essential community hubs by many Britons, with 70% expressing concern over the rate of closures, according to consumer group Which?.
Save our bank last bank in our town as the Lloyds bank black horse bolts and gallops out of town. How can this closure be fair to vulnerable residents and customers with Neurodiversity. Not everyone banks online. Where is a equality assessment for this. @GideonJAmos @AroundWelly pic.twitter.com/pJqhWPG4xZ
— Ross Henley (@RossHenley) April 3, 2023
The issue of bank branch closures is not limited to Lloyds alone. Cash remains the second most common payment method, as reported by UK Finance.
Physical branches provide crucial services such as cash withdrawals, deposits, and face-to-face interactions, which are particularly important for individuals with disabilities, the elderly, and those in rural areas with unreliable phone and internet connections.
The Financial Conduct Authority (FCA) mandates that banks address the lack of cash access in communities affected by closures. Some banks have started to implement measures in response to this requirement.
Sam Richardson, deputy editor of Which? Money, highlighted the varied impact of branch closures in May. He noted that while some customers adapt easily to online banking, others who depend on in-person services face significant challenges.
Richardson stressed the importance of ensuring essential banking services remain accessible and urged the government to expedite the opening of more banking hubs to support those who still rely on them.
What Other Media Are Saying
- Express.co.uk reports that Lloyds Bank is closing 292 branches by 2025, posing a significant challenge to elderly and vulnerable Brits due to reduced online banking accessibility. (Read more)
- GB News reports Lloyds Bank closing 292 branches between 2024 and 2025, affecting vulnerable and elderly populations, with alternative services through banking hubs and Post Offices emphasised. (Read more)
- The Guardian highlights that the closures are driven by a significant decline in branch transactions, noting that communities losing branches must have accessible alternatives to cash services to mitigate the digital divide. (Read more)
Frequently Asked Questions
Here are some common questions asked about this news
Why is Lloyds Banking Group closing so many branches?
Lloyds is closing branches due to the rise in online and mobile banking.
Which banks owned by Lloyds are affected by the closures?
The closures will affect Lloyds, Halifax, and Bank of Scotland.
How many customers visit high street branches to manage their money?
Only 8% of customers visit high street branches to manage their money.
Why are people concerned about bank closures?
People see banks as community hubs and worry about losing face-to-face services.
What are the Financial Conduct Authority (FCA) rules regarding bank closures?
The FCA requires banks to address cash gaps in communities amid the closures.
