Barclays, Lloyds, Halifax & Bank of Scotland to shut 63 branches

Jan 31, 2024

The closure of 63 branches by Barclays and Lloyds Banking Group has been announced, with the cuts due to take place later this year or early next year. Barclays will be shuttering 10 branches, while Lloyds is closing 21 Lloyds Bank sites, 15 Halifax and 17 Bank of Scotland between September and next May. This move comes as more and more people choose to almost exclusively use online banking, rather than visiting a branch.

The rapid closure of the UK's banking network is a reflection of the changing habits of customers. Lloyds said that across its brands more than 20 million customers regularly use online banking, and that visits to the 53 branches it is shutting have dropped by an average of 55% in the last half-decade. The worst hit branch slated for closure has seen footfall drop by 73%. Lloyds Banking Group said: "Our customers are increasingly using digital channels to manage their money, we now have over 20 million customers choosing to bank online."

This trend is not unique to the UK. Across the world, banks are closing branches as customers increasingly turn to digital banking. In the US, for example, Bank of America has closed more than 1,500 branches since 2010, while JPMorgan Chase has closed around 1,000 branches since 2015.

The shift towards digital banking has been accelerated by the COVID-19 pandemic, which has forced many people to stay at home and avoid public places. This has led to a surge in online banking activity, with many people using digital channels for the first time. According to a survey by Accenture, 60% of consumers said they are using mobile banking more frequently since the pandemic began.

However, the closure of bank branches is not without its critics. Many people still rely on physical branches for their banking needs, particularly older people and those living in rural areas. The closure of branches can also have a negative impact on local communities, as it reduces access to financial services and can lead to job losses.

To address these concerns, some banks are exploring new ways to provide face-to-face banking support in communities. Lloyds, for example, is introducing more community bankers to provide support in areas where branches are closing. Customers can also bank with the company over the phone, through the Post Office or in a banking hub.

Despite the challenges posed by the closure of branches, there are many benefits to digital banking. For customers, it offers greater convenience and flexibility, allowing them to manage their finances from anywhere at any time. For banks, it offers cost savings and increased efficiency, as digital transactions are cheaper and faster to process than physical ones.

The rise of digital banking has also opened up new opportunities for fintech companies, which are using technology to disrupt traditional banking models. Fintech startups are offering innovative products and services that are designed to meet the needs of modern consumers, such as mobile payments, budgeting tools and investment platforms.

In conclusion, the closure of 63 branches by Barclays and Lloyds Banking Group is a reflection of the changing habits of customers, who are increasingly turning to digital banking. While this trend offers many benefits, it also poses challenges for those who rely on physical branches for their banking needs. Banks must find new ways to provide face-to-face support in communities, while also embracing the opportunities offered by digital banking and fintech innovation.

H2 Headings:

– The shift towards digital banking is a global trend

– The COVID-19 pandemic has accelerated the shift towards digital banking

– The closure of bank branches is not without its critics

– Banks are exploring new ways to provide face-to-face banking support

– The rise of digital banking has opened up new opportunities for fintech companies