- The bank closures will be across Lloyds, Halifax and Bank of Scotland branches.
- The shift to online banking is blamed for the move.
- Under FCA rules, banks need to assess whether there is sufficient access to cash for communities.
- Locals can request a review by LINK, the UK’s main ATM network.
FCA guidance on access to cash: https://www.fca.org.uk/news/press-releases/new-fca-rules-protect-access-cash-already-having-impact
Susannah Streeter, head of money and markets, Hargreaves Lansdown:
‘’Lloyds is swimming with a fast-moving tide by closing yet more banks across its network. It may have a focus on traditional lending, but the vast majority of customers no longer have any need to go in store for loans or mortgages with digital services dominating. Branches have fallen like dominos, as users have shifted online.
Lloyds is trying to stay lean as it deals with a few cyclical headwinds. Mortgages issued during the pandemic are coming up for renewal at less profitable levels. There’s also an ongoing impact from consumers shifting to longer-term savings accounts in search of better rates. Keeping the lights on and tills staffed for few customers at a time is an expensive endeavour, especially with wage costs going up. But provision for more vulnerable clients who find online banking harder to access money still needs to be made.
Crucially, there needs to be enough cashpoints to serve the local community. Under new FCA rules banks and building societies must assess whether changes to local services, like closing branches or cash machines, leave local communities lacking ways to take out or pay in cash. Any residents, businesses or charities who believe their access to cash is sorely lacking in their areas can request a review. If LINK, the UK’s main ATM network believes there is a hole in provision, additional cash services will need to be provided, either through a banking hub, post office or an ATM.’’
