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Lloyds Bank Group will allow its Halifax, Lloyds and Bank of Scotland customers to use any of its branches across the three brands, prompting union concerns that the UK lender is preparing to close hundreds of locations and ax other operations.
In a memo to staff setting out this year's priorities, Lloyds customer relations chief Jayne Opperman said the group needed to “evolve the way (it) supports customers” in physical branches as “more people choose mobile over any other method of banking.”.
That's why – from the end of this year – we will enable customers to use any of our Lloyds, Halifax and Bank of Scotland branches, regardless of how they bank, giving them access to the UK's largest integrated branch network,” he added.
A quarter of branches of the UK's biggest banking group are close, Lloyds said in an internal 2023 report seen by the Financial Times. The high street bank has around 932 branches, according to the union contract.
Consolidating banking services into different brands could make some of these branches redundant, adding to concerns that could pave the way for another round of mass closures.
Mark Brown, general secretary of the BTU, an independent union at Lloyds, said the main driver of the decision was to “make it easier for Lloyds to close more branches and save more money” rather than improving the customer experience.
“We estimate that Lloyds will be able to close 233 branches at the drop of a hat, thousands of employees will lose their jobs,” he added.
Lloyds it said it is “always looking for ways to make banking easier and more flexible for our customers”.
High street banks have closed more than 6,000 branches in the past decade, according to consumer group Which?.
These restrictions have helped lenders cut costs, but have constrained local communities' access to cash and financial services. More than 7 out of 10 UK adults use cash at least once a week, according to ATM network provider LINK.
The Labor government has promised to speed up the introduction of so-called banking areas run jointly by banks, Cash Access UK and the Post Office in areas where lenders have backed away. It has set a target of 350 institutions during the current parliament.
Lloyds' strategy under chief executive Charlie Nunn has been to “deepen its relationship” with customers at the same time as they go digital. As part of that effort, the bank has reviewed 2,500 jobs, and by 2023 has begun to cut jobs.
Opperman said in his memo that the group's priority is to increase the number of mobile app users – from 20mn currently – and will update the Halifax and Bank of Scotland mobile apps in the coming weeks.
“I know change can feel scary, but when we embrace it, we create better results for our customers and colleagues,” he added.