Banks and other financial institutions continue to struggle with keeping branches open. More specifically, Lloyds will shut an additional 66 locations as demand for digital and online services continues to increase. The move will also impact over a dozen Halifax branches, putting more people without access to physical services.
Another Shutdown By Lloyds
It is no secret banks have been working hard to shut down branches wherever possible. Removing the need to rely on staffers and keeping the lights on for a handful of customers a day makes companies lose money. Instead, they note a strong uptake of digital and online services, even though older generations prefer in-person contact. A digital experience is very different from dealing with someone in person.
The decision by Lloyds to shut down another 66 branches will not go over too well. A total of 48 Lloyds Bank branches and 18 Halifax branches will close their doors between October 2022 and February 2023. It is part of Lloyds’ sustained program of branch shutdowns due to growing demand for online services and products.
Lloyds Director of Consumer Relationships Russell Galley adds:
“As our customers do more online, visits to some branches have fallen by as much as 85% over the last five years. Alongside our digital, online and telephone services, we’ll continue to invest in our branches, but they need to be in the right places, where they’re well-used.”
Even after these closures, Lloyds still operates over 1,300 branches across the United Kingdom. That means many more locations will be shut down in the coming years, although it remains unclear if and when that may happen exactly. At the current rate, the group will have closed all physical branches before 2035, although that trend will become more outspoken among other banks too.