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Lloyds Banking Group targets to close 44 more branches

Lloyds Banking Group targets to close 44 more branches
By Nikhil Batra
  • Lloyds Banking Group announced the closure of 44 branches including sites in London
  • A total of 29 Lloyds and 15 Halifax branches will be shut down between September and November this year
  • FCA expresses concern over branch closures that will impact customers. 

Lloyds Banking Group said it is shutting down 44 branches as many customers move to digital banking options due to the pandemic. The latest closures are due between September and November and will add up to the 56 branches that have been shut down this year, bringing the total to 100.

The bank will close 29 Lloyds and 15 Halifax branches between September and November

The latest announcement will affect 29 of Lloyds and 15 Halifax branch sites across England and Wales and will lead to unemployment of 166 staff.  Some 60 of them can apply for voluntary redundancy. 

The Lloyds branches to be closed are Bournemouth Westbourne, Brixham, Brighton Preston Circus, Bromborough, Cardiff Rumney, Church Village (Pontypridd), Cheltenham Bath Road, Faversham, Henley-on-Thames, Halstead (Essex), Holsworthy (Devon), Hendon, Haslemere, Kempston (near Bedford), London Kentish Town, London Gants Hill, London Berkeley Square, Leeds Horsforth, London Regent Street, Mildenhall, Morley (Leeds), Northwood, Newport Maindee, Oakham (East Midlands), Quinton (Birmingham), Sedgley Dudley (Staffordshire), Stony (Stafford), Towcester and Tadley (Hampshire).

The Halifax branches that will be closed are Chesham, Chertsey, Chesterfield Central Pavilion, Cheshunt, Fleet, Harpenden, Hinckley, Kenilworth, Manchester Cross Street, Market Harborough, Plaistow West Ham, Potters Bar, Pinner, Rugeley, and Upminster.

Vim Maru, retail director at Lloyds Banking Group said customers carry out fewer transactions at these branches up for closure. “Like many businesses on the high street, we must change for the future where branches will be used in a different way and visited less often,” he said.

Unions said it was a “bitter blow for customers, staff and local communities”.  Caren Evans, a national officer at Unite, one of Lloyds’ unions said they “seriously question how this decision to walk away from local communities promotes the message at a time when customers rely on financial services sector’s support. “The closure of 44 more branches will deny our communities’ essential services such as access to cash and highly trained staff.”

She further said, “A local ATM is not a suitable alternative to a staffed bank branch”.

Martin McTague, Lloyd’s vice-chairman said, "Bank branches are not only critical to those who still depend on cash, who are often the society's most vulnerable. They also serve as a draw for shoppers, meaning footfall for surrounding small businesses".

FCA wary over branch closures that will impact customers

The Financial Conduct Authority (FCA) said, “We are concerned that these activities could have significant consequences for customers. It may be harder than usual to reach all customers under the current restrictions and engage with them on closure proposals effectively, such as small businesses that are temporarily closed.

“Some customers may need to access in-branch services to help them prepare for closures but may be unable to do so. Customers may also need additional help to access online banking and make payments. We want firms to review their plans against our existing guidance and ensure that they continue to comply with our principles,” FCA said.

Lloyds said that the customer transactions had dropped by 10% a year over the five years until March 2020. It fell significantly when the COVID lockdowns were imposed and people were restricted to visit the branches. The bank assured that 90% of its customers will still have a branch within five miles of their home, following the closure and it will provide 80% of its products online.

More than a third of the closures were branches in or around cities or large towns that have another branch nearby. All the branches are in line with industry standards designed to protect access to banking.

Even after shutting down its branches, Lloyds will still have the largest network among its competitors having 1,523 branches.