Lloyds Banking Group has announced that customers of Lloyds, Halifax, and Bank of Scotland can now use services in any of the three banks’ respective branches. The move by the UK’s largest moneylender aims to provide customers with greater flexibility and choice, while also making it easier to connect with apps, mobile messaging, and telephone support. Though no date has been set for the changes, many in the industry are concerned they could lead to further closures of bank branches in the future. The increase in online banking has prompted widespread closures across the UK’s high streets, with Lloyds alone having closed many branches and cut staff as part of a major restructuring starting from February 2022.
Lloyds said that the decision could mean that customers may use branches nearer to their location. While the move could result in some closures, once the presently announced closures are complete, the group will operate 892 branches, with Lloyds boasting 447 branches, 341 Halifax, and 104 Bank of Scotland. However, closures of bank branches are more likely in areas of socio-economic disadvantage.
According to the BTU, Bank & Finance Union, which represents Lloyds employees, the shift could potentially risk further cuts to branches. It warned that the new policy is not for the benefit of customer choice or engagement. Instead, it’s about facilitating Lloyds’ decision to close down more bank branches and save funds. Union representatives cautioned that more banks could close, citing that retail outlets might stop accepting cash if it becomes too challenging for retailers to process.
The British Retail Consortium reported that despite a decade-long decline in cash transactions, cash usage in shops rose for the second year in a row in 2023. For shoppers, cash is a means to budget better, with notes and coins used for around 20% of all transactions. Despite this, the BTU is not an official union, and all of its proposals are unapproved, leaving it powerless to influence Lloyds’ decisions
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