UK-based retail and commercial banking company Lloyds is reportedly planning to axe around 1600 jobs in its branch network, in a push to encourage its customers to adopt digital services.
The bank is creating around 800 roles in an expanded ‘relationship growth’ team, which will meet with customers through video appointments, telephony or in branch.
The creation of the new relationship growth team and 1,600 job cuts will result in a net reduction of about 769 jobs across its branch network.
According to the Scottish Widows and Halifax, the decision on job cuts is driven by the choice of more than 21 million out of its 26 million customers to use online services.
In November last year, the company was reported as planning to cut around 2,500 jobs, as part of a planned restructuring of its business to focus on digital services.
Lloyds bank spokesperson: “As more customers choose to manage their day-to-day banking online, it’s important our people are available when it matters most.
“We’re introducing a number of new roles and making changes to our branch teams so our customers can see us how and when they want to.
“LBG announced significant changes to its branch network structure and ways of working, which it says are necessary because of changes in customer behaviour. The move represents a significant change to the branch networks and our members.”
Accord, an independent trade union representing employees of Lloyds, said that the company will reduce its existing 20 locations to 10 regions.
The move will reduce five branches in Lloyds Bank, one in Bank of Scotland and four in Halifax.
From April 2024, the staff working in the Community Banking division will focus on supporting customers with their banking needs using a digital-first approach.
The newly created Relationship Growth team will focus on growing the bank through increased sales to existing customers and referrals to other parts of the Group.
The team comprising Relationship Managers (RMs), supported by Relationship Growth Coaches, will maintain relationships with the customers.
Lloyds aims to get all customers using digital-first, although it accepts that not all customers have the tools or the appetite to switch, said Accord.
