Lloyds Banking Group has announced the closure of 136 branches across the UK, continuing a trend of major banks reducing their physical presence due to increasing digital adoption. The closures, set to take place gradually from May, will affect 61 Lloyds, 61 Halifax, and 14 Bank of Scotland locations. Lloyds cited a nearly 50% decline in transactions at these branches over the past five years as more customers turn to mobile and online banking.
While the bank insists that customers still have ample options, such as telephone banking, banking hubs, and services at the Post Office, the move raises concerns about access to cash, especially for vulnerable individuals. The government has acknowledged these concerns and is pushing for more banking hubs, though their rollout has been slow, with only 100 currently in operation. Under new regulations, branch closures must be reviewed to ensure communities are not left without essential financial services.
Despite assurances that employees at the affected branches will be offered alternative roles, consumer advocacy groups warn that ongoing closures could leave many people, particularly the elderly and those without internet access, struggling to manage their finances. With only 12% of payments still made in cash, the shift towards a digital-first banking model seems inevitable, but calls for government intervention to protect access to cash services continue.
