Major banks to close 55 branches across the UK in 2023
- Halifax, Lloyds, and Bank of Scotland will close 55 branches across the UK in 2023.
- The closures are driven by a significant increase in online and mobile banking, leading to a decline in the use of physical branches.
- The Financial Conduct Authority is introducing new regulations to ensure customers still have access to banking services despite these closures.
Major banks in the UK, including Halifax, Lloyds, and Bank of Scotland, are set to close a total of 55 branches in 2023. This decision follows a trend of declining physical bank usage, attributed to the rapid rise of online and mobile banking. Over the past few years, the number of bank branches has significantly decreased, with 5,970 closures reported since January 2015, leading to some areas becoming 'banking deserts' without any high street bank presence. The closures will see 32 Halifax branches, 19 Lloyds branches, and four Bank of Scotland locations shut down. This move is part of a broader strategy by banks to adapt to changing consumer behaviors and preferences. The Financial Conduct Authority (FCA) has recognized the impact of these closures and is implementing new regulations to ensure that customers still have access to cash and banking services. Under the new policy, banks will be required to provide alternatives for customers affected by branch closures, although it will not prevent the closures themselves. The changes are set to take effect from September 18, 2023, aiming to mitigate the impact on communities that rely on physical banking services. As the banking landscape continues to evolve, these closures reflect a significant shift in how consumers interact with financial institutions. The trend raises concerns about accessibility and the future of banking in local communities, prompting discussions about the need for sustainable banking solutions in the digital age.