Lloyds bank is set to close five branches this week as part of a series of closures impacting UK high streets. The major bank is shutting down a total of 71 branches across the country. This move is part of a larger trend of retreat from high streets in the UK, with consumer group Which? reporting that 218 bank branches, including those of Lloyds, Halifax, and Bank of Scotland, are slated for closure in 2025 due to the increasing shift of customers to online banking.
Banks attribute the closures to changing customer behavior, as more people opt for online banking services over traditional branch visits. A spokesperson for Lloyds Banking Group highlighted that over 21 million customers now rely on mobile and online banking, indicating a decreasing reliance on physical branches.
While physical branches are diminishing, customers can still access services at Lloyds, Halifax, or Bank of Scotland branches, as well as at Post Offices and shared banking hubs. Additionally, cash deposits can be made at more than 30,000 PayPoint locations nationwide.
The trend of branch closures is not exclusive to Lloyds, with Santander, Barclays, and NatWest also announcing significant cutbacks. This has raised concerns that in-person banking may become obsolete in certain areas. As an alternative, banks are introducing shared banking hubs where customers can withdraw cash and consult with advisers from various banks. By August 19, 2025, 178 hubs had been established across the country, with more in the pipeline.
Basic banking services are also available at over 11,500 Post Offices, although critics argue that this is not a complete substitute for fully staffed branches. Consumer groups have cautioned that the closures could disproportionately affect elderly, disabled, and digitally excluded individuals, particularly in rural regions where alternatives are scarce.
The government-supported Cash Access UK scheme has acknowledged that millions of people still heavily rely on cash, especially for budgeting and daily necessities. This raises concerns about whether the UK is progressing too rapidly towards a cashless society.
The recent wave of branch closures commenced on January 19 in Lewes, followed by Swadlincote on January 20. Branches in Hedge End, Penzance, and Petersfield are scheduled to close on January 21.