Banking giants continue to reduce branches
A wave of bank branch closures is set to hit the UK in June, as Lloyds Banking Group and Santander push forward with plans to scale back their physical networks in response to falling foot traffic and rising digital usage.
Lloyds Banking Group, which includes Lloyds Bank, Halifax, and Bank of Scotland, will close at least 48 branches this year, with several confirmed to shut their doors next month. Lloyds Bank branches in Dorchester, Pembroke Dock, and Welwyn Garden City are among those set to close.
Halifax will shutter branches in multiple towns including Felixstowe, Fleetwood, Gainsborough, Horsforth, Kingsbury, Launceston, Leek, Letchworth, Mold, St Annes, and Welwyn Garden City throughout early to mid-June.
“Most customers are now using our mobile banking app, internet banking or calling us instead,” Lloyds said in a statement. “This means they are using branches less.”
Following these closures, Lloyds Banking Group will operate around 756 branches in the UK — down from approximately 2,200 a decade ago.
Meanwhile, Santander is preparing to shut 95 branches across the UK, including locations in Scotland and several English towns, reducing its footprint from 444 to 349 sites.
Branch closures confirmed for June include Glasgow LDHQ, Glasgow MX, Musselburgh, and Peterhead, along with others in Aberdare, Clacton, Croydon, Dungannon, and Torquay.
“Closing a branch is always a very difficult decision, and we spend a great deal of time assessing where and when we do this and how to minimise the impact it may have on our customers,” a Santander UK representative stated.
The bank has recorded a 63% rise in digital transactions since 2019, while branch usage has dropped by 61% in the same period. To adapt, Santander plans to change 18 branches to counter-free formats starting June 16 and reduce operating hours at most others from June 30. These will typically open three days a week with a mix of weekday and Saturday availability.
Despite the changes, Santander noted that these branches would still be staffed, with an average of eight employees per site. The bank will also recruit 95 community bankers in impacted areas and aims to redeploy existing staff where possible.
The closures reflect a broader shift in UK retail banking as institutions adjust their physical presence to meet evolving customer preferences for digital channels and manage operational costs.
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