Lloyds Banking Group has unveiled plans to permit customers of Halifax, Lloyds and Bank of Scotland to utilise branches across all three brands, igniting concerns about potential widespread closures and redundancies.
The transformation was announced in a staff memorandum by Jayne Opperman, the group’s consumer relationship chief, who emphasised the need to adapt branch services as customer behaviour increasingly shifts towards mobile banking. The initiative, scheduled for implementation later this year, will grant customers access to the UK’s most extensive combined branch network, regardless of their primary banking relationship.
Internal documents from 2023 reveal that 25% of the group’s branches operate in close proximity to one another. With approximately 932 branches currently operating, according to trade union Accord, the consolidation of services across brands could render numerous locations surplus to requirements.
Mark Brown, general secretary of BTU, an independent union representing Lloyds employees, expressed significant concerns about the reorganisation. He projected that the banking group could swiftly close 233 branches, potentially resulting in thousands of job losses. The union leader suggested that cost reduction, rather than enhanced customer service, was the primary motivation behind the strategic shift.
The development occurs against a backdrop of extensive branch closures across the UK banking sector, with more than 6,000 locations shuttered in the past decade. While these closures have yielded cost savings for financial institutions, they have simultaneously restricted community access to cash and banking services. Recent data from ATM network provider LINK indicates that over 70% of UK adults still utilise cash at least fortnightly.
Under Charlie Nunn’s leadership, Lloyds’ strategy aims to strengthen customer relationships while advancing digital transformation. The group has already conducted a comprehensive review of 2,500 positions and implemented redundancies in 2023. The bank is now focusing on expanding its mobile app user base beyond its current 20 million customers, with imminent updates planned for both Halifax and Bank of Scotland applications
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