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New staff memo sparks fears of hundreds more Lloyds Banking Group branch closures and job cuts

Journalist: Katie Elliott, Daily Express

ended 10. January 2025

Fears are mounting that Lloyds Bank could close hundreds of branches and axe more jobs, as the bank encourages customers to use alternative branches within its network, including Halifax and Bank of Scotland.

According to a memo obtained by the Financial Times, Jayne Opperman, Lloyds’ consumer relationship chief, outlined the group’s priorities for the year, emphasising the need to “evolve how [it] supports customers” in branches. She noted that “more people are choosing mobile over any other way to bank.”

She added that customers would be able to use any of the brand’s sites, giving them access to the UK’s “biggest” combined branch.

Combining banking services across brands might make some of those branches redundant, fuelling concerns that the move could pave the way for new closures. 

Mark Brown, general secretary of independent Lloyds union BTU, said the decision was driven by the need “to make it easier for Lloyds to close more branches and save more money”. 

He said: “We estimate that Lloyds will be able to close 233 branches at the virtual drop of a hat, with thousand of staff losing their jobs. 

Lloyds said it was “always looking for ways to make banking easier and more flexible for customers.”

  • Reaction needed for the Daily Express online and print edition. 
  • Are branches necessary or are banks right to be moving more services online? 

 

8 responses from the Newspage community

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Tim Bowen
CEO at Mutual Vision
There’s a belief, in many corners of the banking community, that consumers no longer want or need physical branches. But in our experience of working with building societies around the UK, it’s a belief that’s wholly unfounded. Yes, the modern bank is digital through and through but easier banking for many consumers does not always mean digital banking. Ironically, this retreat from the high street is happening at a time when consumers are becoming more attracted to banks that have a community-led purpose and are not just about serving shareholders. There’s a cultural shift happening and with every bank that leaves the high street, a local building society will benefit. The Newcastle Building Society, like many, is actively expanding its branch network. The perception that younger people don’t want a high street presence is also flawed. When issues arise, an in-app chat doesn't cut it. Yes, digital banking is the future but it’s premature to believe physical branches are in the past.
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Saqhib Ali
CEO at ZeroPA
To an extent, banking hubs withing the Post Office are filling a void left by the High Street banks, but it's not happening quickly enough. Meanwhile, digital and telephone banking cannot meet all customer needs, especially the elderly and, as a fintech social impact lender primarily serving the financially vulnerable and disadvantaged, many of our own customers. A local branch network is critical to meet the needs of the most vulnerable in society especially the elderly and homeless. Potentially 233 branches could be reopened in towns and cities that have no bank, and where Lloyds banking Group have closed Lloyds, Halifax and Bank of Scotland branches.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Unfortunately the days are numbered for the branch network for banks and building societies who are looking at costs through a microscope. The bank branch used to be the focal point of a community and where decisions were made. Those days are gone leaving many having to make alternative banking arrangements. This is easier said than done especially for some clients who still like the personal touch.
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Wes Wilkes
CEO at IronMarket Wealth
This is a Boomer versus Millenial battle. The truth is that closing branches will annoy a large swathe of Lloyd's personal and business customers. The reality is that we are a mobile first world and that is where their future lies. The harsh truth is that the effeciency savings will also be a huge boost to shareholders.
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David Stirling
Independent Financial Adviser at Mint Wealth
Advances in technology have made the high street almost obsolete. With the advent of online banking you can now lodge cheques through your mobile banking app. This negates the need to try and find one the last remaining branches open in your local town which have been becoming rarer than hen's teeth for decades now. It's unfortunate that the personal touch is disappearing, and with branches closing it's the older generation in particular might find it difficult to do day-to-day transactions. Banks however are looking at these prestigious city centre buildings not with nostalgia, but as a massive under-used expense for these modern times.
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Simon Bridgland
Broker at Charwin Private Clients
This contraction of branch based services has been on the horizon since the late 2000's, but more accutely since the the merger with HBOS. Consumers use of banking halls has reduced to amazingly low levels, so it doesnt make any sense to keep many of them open. Some die hard customers will of course be rolling their eyes at further closures, but when a business is so fat with expensive to run buildings, its a no brainer. Sadly many staff will bear the brunt of any closures, as only so many can be re-deployed into other banking departments. Organisations like Lloyds Banking Group will hopefully support and retrain any staff that want or need it for life outside of the bank. Many of whom will have been there for much of their working lives, so would possibly be terrified of the prospect of redundancy.
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Dariusz Karpowicz
Director at Albion Financial Advice
Lloyds Banking Group’s latest memo has sent shockwaves through the high street, sparking fears that hundreds more branches could vanish faster than a cashpoint receipt on a windy day. With the bank nudging customers towards digital banking and shared branch networks, it’s clear the days of popping into your local branch for a chat and a cheque deposit are dwindling. While the convenience of mobile banking is undeniable—after all, who wouldn’t want to transfer money in their pyjamas?—it’s hard to ignore the human cost. Thousands of jobs could be axed, leaving many communities without a physical banking lifeline.

This shift isn’t just about Lloyds; it’s a sign of the times. Technology is steamrolling traditional services, and face-to-face banking risks becoming as rare as a polite queue jumper. For some, especially older or vulnerable customers, branches are a necessity, not a luxury. But as banks chase efficiency and savings, the question remains: are we sacrificing too much?
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Lloyds Banking Group’s latest memo seems to suggest a shifting tide in its approach to customer service—one that may leave traditional branch users out at sea. While the bank highlights the "evolution" of customer support and the convenience of mobile banking, concerns are mounting over what this really means for communities reliant on local branches.

Mark Brown of the BTU paints a stark picture: closures could come "at the virtual drop of a hat," potentially impacting thousands of staff and customers alike. For some, it’s progress; for others, it’s a worrying sign of the digital divide widening further.

Are we witnessing the future of banking or the slow erosion of community hubs? As convenience takes precedence, it’s time to ask whether “flexibility” comes at too high a cost. Let us know your thoughts—while there’s still a branch to visit.