The decision on branch closure is reportedly based on a shift in customer behaviour towards digital banking during the pandemic
Lloyds Bank, Five Ways, Birmingham, England. (Credit: Oosoom at English Wikipedia.)
Lloyds Banking Group is planning to close 44 more branches, including 29 Lloyds Bank and 15 Halifax branches across England and Wales, in the coming 12 months.
The UK lender’s decision on branch closure is based on a shift in customer behaviour towards digital banking during the pandemic, reported Mirror.
Also, the firm’s transactions have declined by 10% a year in the five years till March 2020, and significantly further since the start of the Covid-19 pandemic.
In November last year, Lloyds has resumed its restructuring plan to close 56 bank branches, which was paused due to the Covid-19 pandemic.
Lloyds Banking Group retail director Vim Maru said: “Today we’re announcing that 29 Lloyds Bank and 15 Halifax branches will be closing as, over the past five years, we’ve seen customers carry out significantly fewer transactions at these locations.
“Like many businesses on the high street, we must change for a future where branches will be used in a different way, and visited less often.”
Lloyds assured its customers of providing an option on how they bank with branches, alongside telephone banking, online and mobile banking services.
Also, the bank offers video appointment and cashback services, alongside participating in the industry BankHUB cash initiative and serving customers through 11,500 Post Offices.
Unite, the union representing staff at Lloyds Banking Group, has opposed the bank’s decision to close 44 bank branches, quoting it “a bitter blow for customers, staff and local communities”.
The union noted that the bank branches provide essential service to communities, and their closure will distress customers, staff and local communities.
Unite said that the bank branch network cannot be considered a disposable commodity and it believes that the branch network has a value far beyond its immediate commerciality.
Lloyds has made a commitment to Unite that the majority of impacted employees will be redeployed with few voluntary redundancies.
Unite national officer Caren Evans said: “The closure of 44 more bank branches will deny our communities of essential services such as access to cash and experienced highly trained staff.
“A local ATM is not a suitable alternative to a staffed bank branch. In recent times LBG has spent significant resource to sell its message of ‘Helping Britain Recover’.
“Unite seriously question how this decision to walk away from local communities promotes this message at a time when the customers will rely on the financial services sector support more than ever.”