The bank intends to reduce its physical branch network in response to the growing customer preference towards digital banking
Lloyds Banking Group headquarters in London, UK. (Credit: Carcharoth/Wikipedia)
Lloyds Banking Group has said that it will close 60 more bank branches, comprising 24 Lloyds Bank, 19 Bank of Scotland and 17 Halifax sites across the UK.
The bank’s move indicates an effort to shrink its physical branch network, in response to the growing customer preference towards digital banking.
According to Unite, the trade union representing Lloyds Banking Group’s employees, the bank’s branch closure may result in 124 job cuts.
The bank branches are said to serve small businesses, the vulnerable, disabled and elderly, and the closure would affect their access to cash and essential banking services.
Unite stated that the move would rip the heart out of local communities and its branch closure taskforce will review all of the bank branches that are planned to be closed by the end of this year.
Unite national officer Caren Evans said: “Lloyds Banking Group must not be allowed to abandon 60 more local communities where bank branches play an essential role.
“When a bank branch closes the heart of the local community is ripped out and the results are devastating. Unite is clear that simply leaving an ATM in place of a vibrant bank branch is wholly insufficient.
“The banking sector needs to answer some serious questions about its corporate social responsibilities and the government cannot stand back and allow the relentless closure of banks to continue until no more local banking services remain.”
In November 2020, the bank has resumed its previously paused plans to close 56 bank branches across its subsidiaries, putting 160 jobs at risk.
In June last year, Lloyds has unveiled its plans to close 44 additional bank branches, including 29 Lloyds Bank and 15 Halifax branches across England and Wales.
In October, it has announced the closure of 48 more bank branches across the UK.
Lloyds Banking Group retail director Vim Maru said: “Just like many other high street businesses, fewer customers are choosing to visit our branches.
“Our branch network is an important way for us to support our customers, but we need to adapt to the significant growth in customers choosing to do most of their everyday banking online.”