The rising popularity of online banking is continuing to take its toll on brick and mortar branches, with 62 sites set to close in June in the latest blow to UK high streets. Lloyds Bank and Halifax will collectively shut 14 branches across the UK in June as part of a major restructuring scheme in response to declining footfall. Customers across the spectrum of British banking could be impacted by the exodus of in-person services, with NatWest also set to close 25 sites next month and Santander set to shut 23 branches.
The banking groups have pointed to changing customer behaviour towards online banking as the reason for the mass closures, with Lloyds Banking Group claiming that over-the-counter transactions had fallen by 48% in closing branches over the last five years. A spokesperson for the group, which is set to have only 756 branches after the latest round of closures, a drop from over 2,000 a decade ago, said: “Most customers are now using our mobile banking app, internet banking or calling us instead. This means they are using branches less.”
Backlash to the changes from customers – many of whom are elderly or have mobility issues and struggle to access online banking – has sparked an influx of banking hubs in communities across the country.
The hubs provide residents with acccess to physical money and include private spaces where account holders can speak to representatives from their bank about complicated or confusing matters.
The number of hubs around the country reached 150 at the end of April, according to Cash Access UK, with Labour committed to opening 350 hubs in former banks or other empty premises by the end of parliament.
Bank closures are just one symptom of the drop in popularity of high street shopping – with major UK retailers including WH Smith, H&M and Poundland all announcing a string of shutdowns in recent months.
Zelf Hussain, restructuring partner at PwC UK, said: “Retailers continue to face significant challenges in 2025. While household finances are improving, consumer confidence remains cautious. Additionally, with substantial payroll increases and higher business rates taking effect in April, profit margins will remain under pressure, further straining high street retailers.”