Lloyds and Halifax have announced the closure of an additional 40 bank locations in the United Kingdom.
Between April and June of this year, Lloyds Banking Group will close 18 Halifax locations and 22 Lloyds branches, with all but one closure occurring in England.
The additional closures will reduce the number of Lloyds locations in the country to 693, and the number of Halifax locations to 518.
In the last five years, visits to the selected branches have decreased by around 60 percent on average, according to the organization.
This is just another blow to Britain’s struggling high streets, as banks and building societies have shuttered or planned to close almost 5,000 branches since January 2015, an average of 54 per month.
In addition, Britons continue to struggle with a cost of living crisis precipitated by skyrocketing energy costs and an inflation spiral that is just beginning to abate.
Age UK’s charity director Caroline Abrahams responded to the decision by stating that older people risk being “cut adrift” from banking services and that banks should do “everything they can” to guarantee “essential” services continue to be offered.
And Conservative Member of Parliament Alexander Stafford called the decision a “absolute disgrace,” stating that Lloyds had a “duty of care” to local communities.
In recent years, there has been a steady decline in the number of people who use in-person banking services, as more and more people switch to internet banking.
Those who depended on bank branches were compelled to learn how to bank from home during the pandemic.
However, branches remain essential for the weak, the aged, and anyone requiring face-to-face assistance.
The South East has witnessed the most branch closures since 2015, with 704 locations closing prior to the newest announcement.
Barclays has cut 149 locations in the region, along with 114 Natwest branches and 129 Lloyds locations – before the additional closures announced by Lloyds today.
According to consumer rights group Which?, Scotland was the first region in the United Kingdom to see more than half of its banks collapse.
Since 2015, the Royal Bank of Scotland has closed 160 branches in Scotland, while Bank of Scotland has shuttered 128.
The most recent statement increases this year’s total number of bank branch closings to 64.
> Are you on the verge of losing your bank branch? Examining our interactive map
Earlier in the month, TSB and Barclays announced the closure of nine and fifteen branches, respectively.
A spokeswoman for Lloyds Banking Group stated, ‘Branches play a vital role in our strategy, but we must locate them in locations where they will be utilized.
Along with our online, mobile app, and telephone services, we will continue to invest in branches that are often visited.
This graph depicts the drop in branches of the six largest banks between 2014 and last year.
According to the Financial Conduct Authority (FCA), the United Kingdom had an average of 2,3 bank branches per 10,000 people in 2012. This has fallen by 27% during the subsequent five years, to 1.47.
This Lloyds branch in Beckenham, south-east London, will shut down on April 20.
18 Halifax locations in Golders Green, north London, Maldon, Essex, and Bletchley, Buckinghamshire, among others, will be closed.
Included among the 22 Lloyds locations are those in Dagenham, east London, Ipswich, Suffolk, Twickenham, south-west London, and Harrow, north-west London.
The sole location outside of England is the Bangor branch of Halifax in Wales.
According to the organization, all locations are within a quarter-mile of at least one free cash machine and a Post Office.
In addition, the closures will not result in any employment losses.
Mr. Stafford, the Member of Parliament for Rother Valley, reacted to the news by stating, “It is an utter travesty that they are cutting off this vital lifeline from our streets with so little notice.
Lloyds owes a duty of care to the local community, and this decision will further harm local businesses and high streets. I urge them to reconsider their decision and promote thriving British high streets.
Ms. Abrahams of Age UK stated: “Access to face-to-face banking is becoming increasingly restricted, as evidenced by the latest news.”
‘With swaths of local branches closing and others adopting shorter hours, it is causing significant problems for elderly people who are reluctant or unable to bank online, or who would just prefer the option to walk into a bank and speak to someone if they have a question. Older people are allowed to feel aggrieved that a normal aspect of their daily life – the ability to visit their local bank – is vanishing for commercial reasons, when it would be far more convenient for them if it remained.
“The rapid transition to online banking over the past few years has caused significant problems for many older customers, especially those with visual impairments and poor dexterity,” When branch closures occur with inadequate public transportation, a dearth of ATMs, subpar internet connectivity, and mobile dark spots, it becomes increasingly difficult for customers to retrieve their money.
“The recent announcement by banks regarding how they will protect cash via shared banking hubs, Post Offices, and community cashback is welcome.”
‘However, certain clients are still at risk of being abandoned, and banks should do everything in their power to assure the continuing provision of vital financial services for years to come.’
The Daily Mail reported this month that the five largest banks in the United Kingdom have closed more than half of their locations since 2015.
In 2015, Lloyds, Barclays, NatWest, HSBC, and Santander possessed a total of 7,553 branches.
In many locations, the closures have left large portions of the population with limited access to banking services, such as cash withdrawal.
HSBC has shrunk its UK branch network from approximately 1,070 to 327, closing 69% of its branches.
Barclays has closed 67% while NatWest has closed 64%.
HSBC stated in November that it will begin eliminating 114 branches beginning this April.
They stated that the locations serve fewer than 250 customers per week, revealing that its surviving network will consist of 327 locations after the latest round of closures.
Additionally, NatWest announced last year that it will close 43 branches in 2018, including those in Coventry, Cheltenham, Tonbridge, and Kent.
The closures began this month and will last until March.
The South East has experienced the most branch closures since 2015, with 704 locations closing prior to the latest announcement.
Barclays has eliminated 149 locations in the region, including 114 Natwest branches and 129 Lloyds locations – before the additional closures announced for Lloyds today.
According to Which?, Scotland was the first region in the United Kingdom to see more than half of its banks collapse.
Since 2015, the Royal Bank of Scotland has closed 160 branches in Scotland, while Bank of Scotland has shuttered 128.
The data of Which? also revealed that the South Yorkshire electorate of Wentworth and Dearne holds the unfortunate distinction of being the first to lose all of its banks.
Since 2016, nearby Sheffield Hallam has likewise lost all of its banks.
Arundel’s rural constituency and West Sussex’s South Downs have likewise lost the majority of their banks since 2016.
The upscale market town, home to the Duke of Norfolk’s residence at Arundel castle, lost its final bank, a Lloyds branch, six years ago.
In East London, the Erith and Thamesmead constituency similarly lost all of its surviving banks.
In February 2021, Barclays was the last bank in the constituency.
South Devon, a vast, predominantly rural electorate, has lost 87.5% of its banks over the past six years, making it one of the other regions that have suffered significant bank branch closures.
The Park View, Whitley Bay branch of Halifax will close on June 21.
Other areas ranked highly by Which? include Wirral West (87.5% decrease since 2016) and neighboring Liverpool West Derby (100 per cent decline since 2016).
In terms of bank branch closures, however, rural and northwestern regions were among the hardest hit, while urban and affluent regions experienced the least reduction.
According to Which?, Walthamstow in London lost only 11 percent of its banks, while Carshalton and Wallington lost 14.3 percent.
Banbury, in Oxfordshire, witnessed a population decrease of 10.5%, whereas Sittingbourne and Sheppey, in Kent, saw a decline of only 7.7%.
However, West Bromwich East in the Midlands was the only district not to experience a fall.
All of the main banks, including Halifax, Santander, Lloyds, Natwest, TSB, Barclays, and HSBC, still have branches in the area.
In addition to bank closures, a growing number of businesses are rejecting cash.
Recent research conducted by the ATM network Link revealed that nearly half of the population (45%) has been to a location where cash is not accepted or is discouraged.
The findings of the trade organization UK Finance indicate that 1,100,000 people primarily utilize cash for their daily purchases.
The transition to digital payment is occurring despite past concerns that it could expose the United Kingdom to online attacks from hostile actors.
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