The largest bank in the UK has announced that it intends to cutaround 9,000 jobs (approximately one-tenth of its workforce) over the nextthree years as a result of the ongoing shift of consumers switching from physicalbranches to online banking. In addition to the job cuts, Lloyds Banking Groupis expected to close some of its 2,000 branches across the Lloyds Bank, Bank ofScotland, and Halifax brands.
According to the British Bankers Association, digitalbanking has rapidly grown with almost 40 million mobile and internet bankingtransactions every week and transactions reaching a value of almost £1bn ($1.60billion) a day. Although the rise ofdigital banking will fundamentally shift how consumers interact with theirprimary financial institution, the BBA believes that branches will remainimportant for the foreseeable future.
“While the size of these networks will decline, HighStreet outlets will remain important for those bigger moments, such as when acustomer takes out a mortgage, wants to assess their financial options orresolve a complaint,” writes the BBA in a recent report on the state of modernbanking.
While Lloyd’s plans for the future will fully be unveilednext Tuesday, the Bank and the wider banking group are making the appropriateshift in order to ensure that Lloyds and its other brands are able to providesuperior customer service and banking products that appeal to consumers as theirdemands and needs to change.
Overview by Tristan Hugo-Webb, Associate Director, International Advisory Service for Mercator Advisory Group
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