Lloyds Banking Group has decided to let Lloyds, Halifax, and Bank of Scotland customers visit and use any of its branches, no matter which one they use. This has made union members worried that the bank might soon close lots of branches and slash more jobs.

Jayne Opperman, the Chief Executive Officer of consumer relationships, informed staff about the changes in an email.  She stated that more people are now picking mobile banking instead of other ways to bank, so the firm need to change how it support customers in other places.

BTU Believes The Change Is A Cost-Saving Measure To Shut More Branches

Opperman added that’s why, later this year, the bank will let customers go to any of the branches, whether it’s Halifax, Lloyds, or Bank of Scotland. This way, they can use the biggest group of branches together. The bank plans to implement the new policy in the fourth quarter of the year.

A quarter of the bank’s branches are reported to be positioned near each other. Lloyds’ internal union, BTU, thinks that letting customers go to any branch is really just a way to shut down more branches easily.

The union noted that this plan isn’t about helping customers or giving them choices. It’s about making it easier for Lloyds to shut down branches and cut costs. BTU believes Lloyds could quickly close 233 branches, which would make thousands of people lose their jobs.

This year, Lloyds already shared its plans to close 55 more branches, leaving only 932 branches across the UK.

The Bank Wants To Increase Its Mobile App Users And Update Its Apps

The bank said it’s always trying to make banking simpler and more flexible for customers. According to the group, banks have shut over 6,000 branches in the last 10 years.  While this helped banks save money, it made it harder for local areas to get cash and banking services. More than 70% of UK adults use cash at least once every two weeks, according to LINK, an ATM network provider.

The Labour government wants to set up more banking hubs, where Cash Access UK, banks, and the Post Office can work together in places where branches have closed. It aims to create 350 hubs during this parliament.

Under Chief Executive Officer Charlie Nunn, Lloyds has focused on getting closer to its customers while becoming more digital. As part of the changes, the bank evaluated 2,500 jobs and reduced staff in 2023. Opperman said in her note that the group’s main focus is to grow its mobile app users from the current 20 million and upgrade its Halifax and Bank of Scotland apps soon.