Lloyds Banking Group Plans To Shut Down 292 Branches By 2025
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Lloyds Banking Group has announced it will close many branches in the United Kingdom. The company said it will shut nearly 300 branches, adding that 55 more will close next year. Lloyds stated that by the end of next year, there will be 292 fewer branches.
Lloyds is not the only bank following the trend of shutting down branches. The bank said more people are using online banking, so fewer are visiting branches. Other banks, such as NatWest and TSB, revealed that they are closing some of their branches.
Lloyds Reveals Potential Effects Of Its Move To Shut Down More Branches
Lloyds said closing branches will impact customers who need physical locations for their banking. The firm added that a local branch is very important for many people, especially older ones or those in rural areas.
The latest report revealed that many branches that are being shut down at the moment were less effective within the last five years. These branches executed about 55% fewer transactions than they used to complete before. Lloyds says more people are moving towards mobile and online banking, and more than 19 million customers use its mobile app for banking.
From the beginning of this year, Lloyds has revealed plans to end the operations of 119 Halifax branches, 128 Lloyds Bank branches, and 45 Bank of Scotland branches. Lloyds has told affected customers how these closures might change their banking habits.
Areas like Essex will lose three Lloyds branches and three Halifax branches, impacting towns such as Saffron Walden and Dagenham. The company said this change shows the shift to digital banking and more use of mobile apps.
The Latest Branch Closure Trend Has Raised Worries Among Customers
The closures have raised concerns among many customers. Ged Nichols from Accord stated that banks need to support customers who might struggle without branches. Nichols added that physical branches are important for those who need help with benefits and entitlements.
To support this change, Lloyds is putting money into improving mobile and online banking. The company said it is creating banking hubs where people can use banking services without needing physical cash.
Banks are now paying more attention to digital services. Even with the branch closures, there is still hope for people who need cash. The Bank of England and the Financial Conduct Authority stated that they are developing rules to ensure people can still get cash throughout the UK.
According to the report, there is much discussion about how to adapt to these changes. Some customers are thinking about switching banks, especially those affected by branch closures.
