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Lloyds Bank is closing 100 high street branches, with more than 400 job losses

Lloyds Bank

The Lloyds bank will be closing high street branches as it faces changed customer behaviour

One of the most reputed and high street banks, the Lloyds bank is getting ready to face the challenge of changing customer behaviour, as the new reality in banking. The bank has decided to respond to the fall in the number of transactions at its outlets by reducing the number of outlets.

This will mean less physical interaction between the bank and its customers and clients. The bank will close 100 branches between July and October. This step by the bank will have an impact on its staff as it will mean job loss for 400 employees, according to the bank.

Earlier, the company had said closure of many branches. At that time in 2016, it had announced its decision to shut down 200 branches. But there is some good news as the company will create 96 roles. This fall in the number of customers at the bank’s brick-and-mortar branches can be attributed to the rise in the use of digital banking technology. More number of people are using banking technology rather than visit the physical branches for their requirements.

“These branch closures – previously announced in July 2016 – are in response to changing customer behaviour, and the reduced number of transactions being made in branches,”

said a spokesperson.

“We are committed to working through the changes announced today in a careful and sensitive way. All affected employees have been briefed this morning, and our recognised unions, Accord and Unite, were consulted in advance and will continue to be consulted throughout the process.

“The group’s policy is always to use natural turnover and to redeploy employees wherever possible to retain their expertise and knowledge within the Group. Where it is necessary for employees to leave the company, wherever possible, this is achieved through offering voluntary redundancy. Compulsory redundancies will always be a last resort.”

“The continuous stream of branch closures announced by the UK’s retail bank branches appears to show no signs of ending. The loss of a further 100 local banks will be painful for high streets across the country to absorb,”

added Rob MacGregor, Unite national officer.

The bank has recently announced closing down 29 of its branches. It will also cut its workforce by 10 per cent as the bank will outsource thousands of jobs. In the meantime, the government, which was the bank’s largest shareholder, has cut its stake in the bank to less than 2 per cent.

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Paul

The author Paul