Lloyds Banking Group will allow customers to use any of its Halifax, Bank of Scotland and Lloyds branches as part of a shake-up that has sparked fears of job cuts and site closures, weeks before a strategy update by its chief executive, Charlie Nunn.
A memo circulated to staff earlier this week explained that customers would be able to conduct their in-person banking at branches of any of the group’s three brands, regardless of which of lender they held accounts with.
But unions representing Lloyds Banking Group staff are concerned this could open the door to job cuts, given that roughly 25% of the high street lender’s branches were within close distance of one another, according to a 2023 estimate. So far, they have been serving different sets of customers.
Hints of the move came last year, when the group rolled out standardised uniforms across Halifax, Bank of Scotland and Lloyds branches. Some branch staff already move between differently branded sites.
A Lloyds Banking Group spokesperson would not comment on whether the decision could result in branch closures or job losses.
Lloyds currently has about 932 branches, but previously announced closures will take that figure down to 892 branches by the end of 2025. That includes 447 Lloyds Bank sites, 341 Halifax-branded branches and 104 Bank of Scotland locations.
“We’re always looking for ways to make banking easier and more flexible for our customers so, from later this year, we’ll offer customers of Lloyds, Halifax and Bank of Scotland the option to use branches of any brand for their in-person banking, alongside our apps, mobile messaging, and telephone services,” the company said.
The changes have been announced to staff just weeks before Nunn is due to give an update on how the bank is performing, as it heads into the final two years of a five-year strategic plan that involves a massive shift towards digital and mobile banking.
Nunn will provide the update, alongside full-year earnings, on 20 February, which could include further provisions for a ballooning car finance scandal and put pressure on Lloyds’ finances. Analysts at KBW believe the scandal could cost Lloyds up to £4.2bn.
Ged Nichols, the general secretary of the union Accord, said he hoped that any decision to cut branches would include plans to redeploy staff to other departments.
“This is part of the ongoing change in branch banking. The rationalisation of premises in and of itself is not a threat – but clearly we want to ensure that employment is protected and that the bank finds alternative roles for the talented people it employs to service its customers.”
