Lloyds Banking Group and NatWest have jointly announced plans to close nearly 200 branches, marking a continued trend of diminishing high street presence in the banking sector.
Specifically, Lloyds Banking Group will shutter 61 Lloyds branches, 61 Halifax locations, and 14 Bank of Scotland branches between May and March of the following year. This strategic move is attributed to the increasing adoption of mobile banking services, which has led to a dramatic 48% decline in transactions at these branches over the past five years. In light of these closures, the company has assured that all affected employees will be given opportunities for reassignment within the organization.
In a related development, Lloyds recently announced plans to lay off 163 staff members in England and Wales, part of a new branch-sharing initiative intended to allow customers from Halifax, Lloyds, and Bank of Scotland to access services at a wider range of locations.
Similarly, NatWest has revealed it will close 53 branches this year, citing a shift toward digital banking as the primary factor behind this decision.
Data from consumer advocacy group Which? indicates that since January 2015, UK banks and building societies have closed a total of 6,266 branches, averaging approximately 53 closures each month.