Lloyds closes 53 more branches as customers switch to online banking, yet another blow to the high streets
- The bank says it will close branches because more customers are switching to internet banking
Lloyds has announced the closure of a further 53 branches in the latest blow to the high street.
It brings the number of establishments closed or slated for closure in the industry so far this year to more than 500.
The new announcement means that 21 Lloyds Bank, 15 Halifax and 17 Bank of Scotland sites will disappear between September this year and May 2024.
Like other lenders, Lloyds says it is closing branches because customers are increasingly opting for internet banking.
However, campaigners argue that elderly and vulnerable account holders – some of whom struggle to use web or app-based platforms – are being abandoned. This is reinforced by a sharp drop in the number of free-to-use ATMs.
Lloyds said utilization of the last 53 branches on the verge of closing has fallen by an average of 55 percent over the past five years
Figures compiled by consumer group Which? show that 662 branches were closed industry-wide last year and 204 branches have closed this year, with 255 more planned, bringing a total of 1,121 before yesterday’s announcement.
That total includes 284 Lloyds, Halifax and Bank of Scotland branches – the brands managed by Lloyds Banking Group.
The latest closures mean that Lloyds – which was bailed out by taxpayers during the financial crisis in a £21bn bailout – has cut or will cut more branches than its rivals in the same period.
Lloyds said utilization at the last 53 stores on the verge of closing had fallen by an average of 55 percent over the past five years.
A spokesperson said: “In addition to our digital and mobile banking options, we are introducing more community bankers to provide personalized support.”
The “community bankers” visit areas where branches are closed and have dedicated office space to meet with clients on pre-announced days.
More than 5,000 branches, more than half of the total, have been closed since 2015, says Which?.
This year, HSBC’s UK boss, Ian Stuart, sparked anger when he told a committee of MPs that closing branches is ‘what customers want’.