Lloyds has announced the termination of its mobile van banking service this year, alongside a reduction of 1,600 jobs in its branches, as it shifts focus towards digital banking.
Operating as an alternative to traditional High Street branches, the mobile banking service, catering to Lloyds Bank and Bank of Scotland customers, is set to conclude in May.
The decision to discontinue the mobile service is attributed to a significant decline in user numbers.
The service, available at predetermined days and times, allows customers to perform various banking tasks such as cheque cashing, cash withdrawals, bill payments, international transfers, and general account inquiries.
Despite the mobile vans serving numerous locations, Lloyds emphasized that every mobile branch location is complemented by nearby cash access alternatives, including Post Offices and free-to-use ATMs.
In response to the service closure, Lloyds, which also owns Halifax and Bank of Scotland, plans to deploy an additional 32 “community bankers” to the areas previously served by the mobile branches.
The trend of branch closures by major High Street banks has accelerated over recent years due to a surge in online banking usage, resulting in an average of 54 branch closures per month since January 2015.
This has sparked advocacy from charities for the establishment of more shared banking hubs to assist those hesitant about online banking. These hubs offer counter services for several major banks, often operated by the Post Office, and feature a dedicated space for customer meetings with community bankers from their respective banks, on a rotating schedule.
To date, 32 shared hubs have been inaugurated, with five being temporary, and an additional 70 recommended by Link, the UK’s leading ATM network.
Lloyds reports a 90% decrease in mobile branch visits since 2018, with an average of just 14 customers per mobile branch session. Some locations report as few as two customers.
Furthermore, Lloyds noted that only 8% of its clientele solely rely on branch banking for managing their finances.
The recent job cuts at Lloyds, aimed at adapting to the growing preference for online banking, are part of a broader restructuring effort. Although 1,600 positions are being phased out, the creation of 830 new roles results in a net reduction of 769 jobs, with assurances that the cuts will not affect junior staff members and that voluntary redundancies will be offered.
