The rapid closure of banks in the UK is due to customers increasingly going online. But concerns have been raised about the impact on older and vulnerable people.
By means of Daniel Binns, business reporter
Friday, June 2, 2023 3:50 PM, UK
Two of the country’s largest banking giants have announced that they are closing a total of 63 branches.
Barclays said Friday it will close another 10 branches, on top over 70 closures this year that have already been announced.
Meanwhile, between September and May 2024, Lloyds Banking Group will close 21 Lloyds Bank locations, along with 15 Halifax branches and 17 Bank of Scotland buildings.
The company announced this in January planned to close 40 Lloyds and Halifax locations.
The closures are taking place in England, Wales, Scotland and Northern Ireland.
The rapid decline in the number of physical banks in the UK is due to more and more customers opting to bank almost exclusively online.
However, concerns have been raised that closing major high street stores could create problems for older and frail people who do not have easy access to the internet.
Age UK warned in a report last month that the rise of digital banking, cashless transactions and branch closures risked some people being “cut off from society”.
A poll of over-65s commissioned by the charity found that 27% manage their accounts through a branch or other physical location, such as a post office, rather than online.
About 75% indicate that they want to do at least one transaction in an office.
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Lloyds said more than 20 million customers across all its brands regularly use online banking and visits to the 53 branches it closes have fallen by an average of 55% over the past five years.
The hardest-hit branch slated for closure saw footfall fall by 73%, Lloyds said. It did not disclose its location.
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A spokesperson said: “In addition to our digital and mobile banking options, we are introducing more community bankers to provide personal banking support in communities.
“Customers can also bank with us over the phone, through the post office or in a banking center.”
The company said all staff at branches that are closing “will be offered employment at another branch or elsewhere in our company.”
