Lloyds Bank has announced it will no longer open new accounts for customers at its branches, marking a significant shift towards digital banking. This change means that services such as opening joint, premium, or student accounts, as well as switching accounts from other lenders, will now be available only online.
With branches across cities including Birmingham, this move has sparked concern among consumer advocates and unions alike. Martin Quinn from the Campaign for Cash expressed disappointment, emphasizing that in-person banking remains crucial for many customers who prefer engaging with real people rather than machines. Quinn highlighted the ongoing decline of high street services, stating that reducing face-to-face banking offers “a real kick in the teeth” for local communities.
Although customers can still open current accounts at branches, other premium services like Club accounts will no longer be accessible in person. Lloyds Banking Group, which owns Halifax and Bank of Scotland and serves 28 million customers, is shifting focus to digital channels amid evolving customer habits.
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Mark Brown, general secretary of Affinity—a union representing Lloyds employees—criticized the move, saying it signals “the death of branch banking,” questioning the future relevance of physical branches if everyday banking is forced online.
Catherine West MP, member of the Treasury Select Committee, voiced her concerns about the loss of personal service, noting that while mobile banking is convenient, many still need and want to speak with real people. She highlighted the role branches play in providing local connection, continuity, and peace of mind.
Responding to the criticism, a Lloyds spokesperson reassured customers that branch staff remain available to assist with managing money and account inquiries, even though account openings will now be directed to online platforms.