Nearly 250 banks are set to close across the UK this year, delivering another blow to high streets already struggling with the shift to online banking. While digital services have transformed how many manage their money, elderly and vulnerable customers still rely heavily on physical branches. Yet major banks have been shutting them down at an alarming rate.
How Many Banks Have Closed So Far?
By the start of June 2026, 138 banks had already permanently closed across the UK. By the end of the year, the total is expected to reach 245 shuttered branches. The closures affect every region, including Greater Manchester, where eight branches will disappear in 2026.
Which Banks Are Most Affected?
Lloyds customers have been hit hardest, with 82 Lloyds branches already closed or scheduled to close this year. Halifax and Bank of Scotland, both part of Lloyds Banking Group, will close a combined 71 branches. Santander is closing 54 branches, and NatWest is shutting 35 banks this year.
In Greater Manchester, Halifax branches in Didsbury and Ashton-under-Lyne have closed this month, along with Lloyds in Altrincham. Other closures have occurred in Manchester, Rochdale, Tameside and Trafford earlier in 2026.
Why Are Banks Closing?
Lloyds Banking Group says the shift from in-person banking to mobile services has driven its closures. In February 2022, all major banking groups committed to a voluntary agreement to assess the impact of each closure. Yet since then, 2,167 branches have closed—an average of nearly 10 per week.
The LINK initiative was established to scrutinise each closure and ensure vulnerable customers and small businesses are not left behind in the transition to cashless payments and virtual banking. When closures leave communities without any local bank, banking hubs or free ATMs are set up to fill the gap. So far, LINK has recommended the opening of 277 banking hubs.
Government Review and Future Changes
In May 2026, the Government announced an independent review into access to banking, led by Richard Lloyd, former Director General of Which? and interim Chair of the Financial Conduct Authority. The review includes a consultation on the impact of branch closures and their implications for the future.
Currently, closure assessments focus on cash access and the potential gap left by a branch closure. This could be extended to include access to banking, potentially recommending new banking hubs at branches already assessed for closure, as well as at future sites. Experts believe the previous commitment of 350 hubs could increase to 550 if these changes are implemented.
Nick Quin, Chief Corporate Affairs Officer at LINK, said: “More people are choosing to bank and pay for things digitally. Many people rely entirely on their smartphones when they leave the home, and don’t carry cash or even a wallet. That means cash use is falling too, but it remains critical, and over £76bn was withdrawn from LINK cash machines last year. Whenever a bank branch does close, LINK will assess the impact to see if additional cash services are required. We’re committed to protecting the cash infrastructure for the millions of people who still rely on it.”
Gareth Oakley, CEO of Cash Access UK, added: “The way people are banking is changing as more people choose to bank and pay for things digitally. But for those people who still rely on cash and face-to-face banking services, the good news is that more banking hubs are opening every week. We've opened more than 200 now, including 100 in 2025 alone. What's particularly brilliant about hubs is that we can serve the customers of all the major high street banks in one location. They're getting busier too with on average around 150 customer transactions every day. There's a real buzz about them. Hubs alongside deposit services and other new cash solutions will continue to help businesses and consumers to readily access and deposit cash when they need to.”
