Lloyds Banking Group to Close 136 High Street Branches in Major Reshuffle

Lloyds Banking Group has announced plans to shut down 136 of its high street branches, marking a significant change for customers. The closures, spanning across Lloyds, Halifax, and Bank of Scotland brands, will unfold between May this year and March 2026. The move comes as part of a larger shift in how customers interact with their banks.

Branches Across Three Brands to Be Affected

The closures will affect 61 Lloyds branches, 61 Halifax locations, and 14 Bank of Scotland sites. This restructuring is part of Lloyds’ broader strategy to adapt to changing customer behavior. With more and more customers turning to mobile banking and digital services, the need for physical branches is dwindling.

Lloyds confirmed that the employees impacted by these closures will be offered roles elsewhere within the company, ensuring no job losses due to the branch closures.

Digital Services Continue to Grow in Popularity

In a statement, a spokeswoman for Lloyds explained the rationale behind the decision. Over 20 million customers are now using the bank’s apps for quick and on-demand access to their accounts. The spokeswoman noted that customers now have “more choice and flexibility than ever for their day-to-day banking.”

The bank also highlighted that alongside its digital services, customers can still access their accounts in-person. Lloyds, Halifax, and Bank of Scotland customers will be able to visit any of the remaining branches across these brands, providing a broader range of locations for physical banking. Additionally, banking can be done at over 11,000 Post Office branches nationwide, offering a more accessible alternative for those who prefer in-person services.

• Customers can also use telephone banking or visit a community banker if they need face-to-face assistance.

Despite the rise of digital banking, many customers are left wondering what this means for their communities, especially those without easily accessible Post Office branches.

A Growing Trend: Bank Branch Closures Across the UK

Lloyds’ decision reflects a broader trend that has been unfolding in the UK banking sector. Since 2015, over 6,200 branches have been closed across banks and building societies, with a steady rate of closures of about 53 per month. This shift is largely driven by the increasing use of online and mobile banking, reducing the necessity for physical branch locations.

However, the closures have sparked concern among some customers, particularly in rural and less urbanized areas, where the nearest branch could be miles away. Critics argue that this leaves many communities without access to essential financial services, which could further isolate vulnerable individuals.

Meanwhile, the Post Office itself is facing its own challenges. In the wake of the Horizon IT scandal, the organization has announced plans to close 115 branches, further limiting options for people who still prefer to handle their banking matters in person.

Despite these closures, both Lloyds and the Post Office are attempting to mitigate the impact by offering alternative methods for customers to manage their finances. Whether through expanded app use or increased access to banking hubs, the transition to a more digital banking future is in full swing.