Lloyds Banking Group has announced significant branch closures that will affect many customers across the UK. The banking giant plans to shut down up to 254 branches in 2025, with some closures already scheduled for April. This decision comes as part of a broader trend in the banking industry, where many customers are opting for online banking over traditional in-person services.
Among the major closures, Halifax and Lloyds branches will be particularly impacted. In total, the group will close 116 sites over the next 12 months, which is part of a larger strategy that has already seen 537 branches shut down since June 2022. The closures will include various locations, including Birmingham, where a Lloyds branch at 608 Bromford Lane is set to close.
As of April 2025, several branches will be closing, including:
- Bank of Scotland: North Berwick on April 2 and Langholm on April 7.
- Halifax: Malton on April 8, Chippenham on April 15, Newbury on April 16, Northallerton on April 28, Oswestry on April 28, Runcorn on April 29, Tamworth on April 29, and Witney on April 30.
- Lloyds: Kenilworth on April 2 and Hitchin on April 7.
The reasons behind these closures are not surprising. Many banks, including Lloyds and Halifax, have cited the shift towards online banking as a primary factor. A staggering 78% of Halifax customers are now using alternative banking methods, which has led to a significant decline in foot traffic at physical branches. This trend has prompted the bank to rethink its high street presence.
Customers affected by the closures are encouraged to utilize various alternative banking services. Halifax has assured its customers that they can manage their accounts, pay in cheques, and apply for finance through mobile or online banking. Additionally, local post offices will continue to provide essential banking services, and there are several free-to-use ATMs located within a short distance of the closing branches.
In light of the upcoming closure of the Chippenham Market Place branch on April 15, Halifax has released detailed advice for customers. They will still be able to access their accounts and perform essential banking tasks through nearby branches or by using the services of a Community Banker, who will be available every Tuesday at the Best Western Plus Angel Hotel starting April 22, 2025.
Despite the bank's efforts to provide alternatives, the announcement has been met with disappointment from long-time customers. Victoria Hackett, a customer for 39 years, expressed her sadness about the closure, stating, "It's such a shame." Another customer, Phil Rowland, raised concerns about the impact on the town center, noting, "The High Street looked decent and had potential, and I bank with Halifax so wanted a local branch."
In addition to Lloyds and Halifax, Santander has also announced plans to shut down 95 branches across the UK by June 2025, putting around 750 jobs at risk. The bank emphasized the need to adapt to changing customer behavior, stating, "As customer behaviour changes, we are ensuring that our branches remain fit for the future." After the closures, Santander will operate with 349 branches, down from 444.
According to research conducted by Which?, UK banks and building societies have closed approximately 6,293 branches since January 2015, averaging nearly two closures per day over the past decade. Barclays has been particularly aggressive in reducing its branch network, with 1,227 closures to date.
As the banking landscape continues to evolve, customers are encouraged to explore other means of accessing banking services. Many banks are rolling out mobile banking services, which include bringing banking services directly to communities through mobile units. These mobile banks offer a range of services usually available at physical branches.
Moreover, the introduction of banking hubs, which are set to number 250 by the end of 2025, will provide customers with a place to perform routine transactions and consult with bank representatives. These hubs, often operated by the Post Office, will enable customers to conduct deposits, withdrawals, and balance inquiries, while also providing access to more complex banking services.
In summary, the wave of bank branch closures is a reflection of changing consumer habits and the increasing reliance on digital banking. As Lloyds, Halifax, and Santander streamline their operations, customers are urged to adapt to the evolving banking environment. While the closures may pose challenges, the availability of alternative services aims to ensure that essential banking needs continue to be met.
