Britain's largest high street lender, Lloyds Banking Group, is intensifying its digital transformation by effectively scrapping a range of popular in-branch services. This move comes as the bank presses ahead with another significant wave of branch closures, adding to the thousands already shut over the past decade.
End of In-Person Account Services
In a decision that has alarmed campaigners for face-to-face banking, Lloyds will no longer allow branch staff to open joint, student, or premium Club accounts on behalf of customers. Additionally, staff will cease facilitating account switches from rival lenders. Instead, customers will be directed to use the bank's app or website, with branch employees expected to guide them through the digital process rather than completing it themselves.
Under new guidance issued to staff, while standard current accounts can still be opened in branches, premium Club accounts will "no longer be offered in branch." Customers will also be barred from making bankruptcy and overdraft appeals in person. Staff will stop opening executor accounts—temporary accounts used by those handling the finances of someone who has died. Basic bank accounts, often utilised by individuals in financial difficulty, are also understood to be affected.
Vulnerable Customers and Digital Push
Lloyds Banking Group, which owns Halifax and Bank of Scotland, serves approximately 28 million customers. Notably, almost five million of these do not use its digital services. Vulnerable customers will be instructed to access the affected services by phone or online initially, although a source close to the bank indicated that staff would retain discretion in individual cases.
Chief executive Charlie Nunn has been vocal about the need to modernise, highlighting on a recent episode of the bank's No Ordinary Tech podcast that 97% of Lloyds's interactions with customers are now digital. He also noted that 4,000 staff have been hired into tech and data roles in recent years, underscoring the bank's commitment to its online strategy.
Branch Closures Accelerate
The service changes arrive as Lloyds continues with another round of closures, shutting more than 100 branches on top of the 1,470 it has already axed over the past decade. Earlier this month, Lloyds announced plans to close 95 branches between May this year and March 2027, including 53 under the Lloyds brand. A further 49 sites are due to shut by October under an existing programme.
Once all the announced closures are complete, Lloyds Banking Group will be left with just 610 branches nationwide. The branch changes are due to begin rolling out next month and be completed by May, with the bank stating there will be no redundancies as a result.
Campaigners Decry 'Death of Branch Banking'
Martin Quinn of Campaign for Cash told the Telegraph: "In-person bank branch services are vital for consumers. People do not want to talk to a machine, they want to deal with real people. High streets up and down the country are being hollowed out by shop closures and removing more face to face banking services is a real kick in the teeth."
Mark Brown, general secretary of Affinity, a union for Lloyds staff that is not officially recognised by the bank, said: "By stopping new and existing customers from accessing everyday banking products and services and forcing them down the digital channel, Lloyds is signalling the death of branch banking. What's the point of bank branches?"
Catherine West MP, a member of the Treasury Select Committee, added: "It's all very well banking on your phone but sometimes you need to talk to a real person. I know I do. Bank branches offer a local connection, a sense of continuity and peace of mind."
Wider Context of Banking Retreat
This overhaul fuels broader concern over the steady disappearance of bank branches and the retreat of cash from daily life. Figures from consumer group Which? show banks and building societies have shut 6,694 branches since January 2015—an average of around 53 per month. Cash accounted for less than 10% of transactions for the first time in 2024, highlighting the rapid shift to digital payments.
A Lloyds spokesman stated: "For those that choose to visit a branch, our colleagues remain ready to help with managing money or opening accounts." However, with the acceleration of digital services and ongoing closures, the future of traditional branch banking appears increasingly uncertain.
