Lloyds Banking Group announces a shared branch service for its three major banking brands amid branch closures.

Lloyds Banking Group has revealed a significant shake-up to its branch network, confirming that customers of Lloyds, Halifax, and Bank of Scotland will soon be able to access services at any branch of the three banking brands. This move, designed to offer greater flexibility and choice to customers, marks a new chapter in the group’s ongoing overhaul of its operations.

The banking giant, which is the UK’s largest moneylender, has yet to specify when the changes will take effect, but the announcement comes at a time of rising concerns over the future of physical bank branches. Some analysts worry that this new strategy may ultimately result in further branch closures, adding to the already dwindling number of High Street locations.

Over recent years, a wave of closures has affected branches across the country, as more consumers shift to online and mobile banking services. Lloyds, in particular, has significantly reduced its presence, closing dozens of branches and shedding hundreds of jobs as part of a broader business restructuring initiated in 2022.

While the new plan promises more convenience, offering customers access to a wider range of locations for in-person banking and enhanced digital services, it also raises questions about the future of physical banking. The decision is a response to changing consumer behaviour, with the banking group acknowledging that most customers now prefer mobile and online banking for its speed and ease.

Despite this shift, the closure of some 55 Lloyds Banking Group branches across the UK is still set to occur this year. Once these closures are complete, the group will have a total of 892 branches, with 447 under the Lloyds brand, 341 under Halifax, and 104 under Bank of Scotland.

However, there is growing concern that these closures are disproportionately affecting disadvantaged areas, leaving vulnerable communities with reduced access to banking services. The British Trade Union (BTU), which represents Lloyds staff, has voiced its concerns, warning that this move is less about customer convenience and more about enabling further branch closures as part of cost-saving measures.

“The co-serving of customers is not about engagement or choice, it’s about making it easier for Lloyds to close more branches and save more money,” the BTU stated in response to the announcement.

Campaigners also argue that this trend could impact small businesses, particularly retailers, who may struggle to process cash if fewer bank branches are available for cash deposits and withdrawals. According to recent data from the British Retail Consortium (BRC), cash usage in shops rose for the second consecutive year in 2023, with notes and coins now accounting for a fifth of all transactions.

With the rapid decline of physical bank branches, the debate continues over the long-term implications for communities, businesses, and the future of cash as a viable payment option. For now, customers of Lloyds, Halifax, and Bank of Scotland will have to wait and see how these changes unfold in the coming months.