Customers of Halifax, Lloyds, and Bank of Scotland will soon have the flexibility to utilize any of the bank’s branches, a significant shift that has raised concerns regarding the potential for further branch closures within the organization.
This development was communicated to employees in an email from Jayne Opperman, the CEO of Consumer Relationships. In the message, she acknowledged the growing preference for mobile banking among consumers but emphasized the need to enhance support for customers through various channels. She stated, “That’s why, starting later this year, we will enable customers to visit any Lloyds, Halifax, or Bank of Scotland branch, regardless of their respective brands, thus providing access to the largest combined branch network.”
The new policy is expected to roll out in the fourth quarter of the year. Reports indicate that approximately 25% of the banking group’s branches are located in close proximity to one another. According to the internal banking union, BTU, the initiative to permit customers to access any branch may lead to increased branch closures.
The Union expressed concern, stating, “The co-serving of customers is less about increasing engagement or options and more about facilitating the closure of more branches to cut costs.” A separate document viewed by the Union revealed that a significant portion of Lloyds’ branch network operates in overlapping locations. For instance, in Bedford, both a Lloyds and a Halifax branch are nearly adjacent to each other.
The Union raised alarm about the implications of this strategy, predicting that after implementation, one of the two branches in Bedford would likely close, directing customers to the remaining facility—an outcome expected to be mirrored across the three networks.
Estimates from the Union suggest that Lloyds may be in a position to close up to 233 branches with relative ease, resulting in numerous job losses. The Lloyds Banking Group has already announced plans to close an additional 55 branches this year, reducing the overall high street outlet count to 932.