Britain’s biggest high street lender has confirmed a major change
Britain’s largest high street lender is speeding up its digital transformation – by essentially ending the opening of many bank accounts within its branches.
In a decision that will worry advocates for in-person banking, Lloyds Banking Group will no longer permit staff to open joint, student or premium Club accounts in branch, nor transfer customers from competing lenders. Rather, customers will be steered towards using the bank’s app or website, with branch workers anticipated to assist them through the digital procedure instead of handling it directly.
The change arrives as Lloyds continues with another round of closures, shutting over 100 branches beyond the 1,470 it has already closed during the past decade.
‘Death of branch banking’
“High streets up and down the country are being hollowed out by shop closures and removing more face to face banking services is a real kick in the teeth.”
Under guidance issued to staff, while standard current accounts can still be opened, premium Club accounts will “no longer be offered in branch”.
Customers will also be barred from making bankruptcy and overdraft appeals in person. Staff will stop opening executor accounts – temporary accounts used by those handling the finances of someone who has died. Basic bank accounts, often used by those in financial difficulty, are also understood to be affected.
Lloyds Banking Group, which owns Halifax and Bank of Scotland, serves 28 million customers. Almost five million do not use its digital services. Vulnerable customers will be told to access the affected services by phone or online in the first instance, although a source close to the bank said staff would retain discretion in individual cases.
Closures mount across the UK
The overhaul will fuel wider concern over the steady disappearance of bank branches and the retreat of cash from daily life. Figures from consumer group Which? show banks and building societies have shut 6,694 branches since January 2015 – an average of around 53 per month.
Cash accounted for less than 10% of transactions for the first time in 2024, underlining the speed of the shift to digital payments.
Mark Brown, general secretary of Affinity, a union for Lloyds staff that is not officially recognised by the bank, said: “By stopping new and existing customers from accessing everyday banking products and services and forcing them down the digital channel, Lloyds is signalling the death of branch banking. What’s the point of bank branches?”
Catherine West MP, a member of the Treasury Select Committee, said: “It’s all very well banking on your phone but sometimes you need to talk to a real person. I know I do. Bank branches offer a local connection, a sense of continuity and peace of mind.”
Earlier this month Lloyds announced plans to close 95 branches between May this year and March 2027, including 53 under the Lloyds brand. A further 49 sites are due to shut by October under an existing programme. Once all the announced closures are complete, Lloyds Banking Group will be left with 610 branches nationwide.
Chief executive Charlie Nunn has been vocal about the need to modernise. On a recent episode of the bank’s No Ordinary Tech podcast, he said 97% of Lloyds’s interactions with customers are now digital and noted that 4,000 staff have been hired into tech and data roles in recent years.
The branch changes are due to begin rolling out next month and be completed by May. The bank said there would be no redundancies as a result.
A Lloyds spokesman said: “For those that choose to visit a branch, our colleagues remain ready to help with managing money or opening accounts.”
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