Lloyds Bank axes key service after shutting UK high street branches

29 January 2024 , 12:33

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Lloyds Bank is shutting down its mobile banking service this year (Image: No credit)

Lloyds Banking Group has announced its plans to close its mobile banking service this year.

This move comes as part of their larger shift towards online banking, which will see 1,600 jobs cut across its branch network. The bank giant revealed that the Lloyds Bank and Bank of Scotland mobile branches would be discontinued from May onwards.

This service was provided as an alternative to physical branches with vans visiting various towns and cities across the UK. Customers used these mobile branches for services such as cashing in cheques, withdrawing cash, paying bills, sending money abroad or asking general queries about their accounts.

But according to the bank, customer usage of this mobile service has been dwindling over time. A spokeswoman from Lloyds explained: "Customers have used our mobile branches much less over time and some locations now have as little as two customers using the service. We'll be introducing more community bankers, alongside the other options customers already have for their banking, including the Post Office, online, our mobile apps, phone banking, video services and web chat."

On average, each mobile branch assists 14 customers, with visits plummeting by a whopping 90% since 2018. The bank has revealed plans to deploy an additional 32 community bankers to offer face-to-face support in areas affected by the mobile branch closures. These representatives from the bank establish a temporary service in community venues or banking hubs, enabling customers to carry out transactions and receive help managing their accounts.

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Lloyds said that customers can still do their banking online, via call, at any Post Office, and across its vast network of over 1,000 high-street branches. This decision is announced amidst job cuts within the group as it looks to push ahead with its digital-first strategy.

Just 8% of its customers insist on using physical branches exclusively for their banking needs. Yet, Lloyds plans to create some 830 jobs in its "relationship growth" team aiming to enhance customer experience.

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Lawrence Matheson