Three major banks are planning to close an additional ten bank branches this week, posing a significant challenge for customers. Halifax is set to shut down five branches, while NatWest will close four, and Lloyds will close one location. The shift is attributed to declining foot traffic in physical branches as more customers opt for online banking services.
However, concerns have been raised by charities about the impact on vulnerable individuals who may lose access to essential banking services. Since January 2015, banks and building societies have collectively closed 6,561 branches, averaging 53 closures per month based on data from Which?
According to Which?, a total of 432 branch closures are scheduled for 2025, with NatWest planning 105 closures, Halifax 101 closures, Santander 95 closures, Lloyds 93 closures, Bank of Scotland 24 closures, TSB 8 closures, and Barclays 6 closures.
In 2026, 71 bank branches are slated for closure, with Lloyds leading with 40 closures, followed by Bank of Scotland with 17 closures and Halifax with 14 closures. Customers facing branch closures can utilize basic cash and counter services at their nearest Post Office. Some banks are also introducing pop-up branches or vans, but availability may vary, requiring customers to check online for schedules.
NatWest highlighted that over 80% of active current account holders use digital services, emphasizing the convenience and speed of digital banking for routine transactions. Lloyds Banking Group, which includes Halifax, mentioned that over 20 million customers utilize their apps for instant access to finances, offering enhanced flexibility in daily banking activities.
It is evident that the banking landscape is evolving towards digital services to meet changing customer preferences and expectations, with banks investing in enhancing self-service capabilities and personalized offerings to adapt to the industry’s digital shift.