Lloyds Bank has announced its plans to cut down a massive number of its branches owing to various scenarios. The banking group announced its intentions to shrink hundreds of its branches in the U.K. mainly due to the decrease in the need for physical branches.
It has become a common practice in almost all the banks worldwide that growing number of customers prefer to indulge in online banking. This is the easier way as it saves time, energy, and money of the individual because he need not travel to a specific branch to fulfill his agenda. One need not stand in the queue to wait for his turn or take a day off from work to complete bank-related tasks. Thanks to smartphones and laptops, bank procedures can be done from any part of the world at any time. One can use the time spent while commuting or any other such unproductive activity to get the work done. Keeping in mind such changes, the high street lender will create ‘micro branches’ in terms of physical area as well as the manual workforce.
Lloyds Bank clarified that this decision was a result of the profound change in the behavior of the customers as a majority of the bank transactions have moved online.
Introduction of micro branches by Lloyds Bank
Followed by shrinking hundreds of branches, each bank will have only a couple of employees. The number of employees in each branch will be so meager than one can count them on their fingertips. These employees will not be on specific counters like traditional banking. Apparently, each branch will have only two employees. Both these employees will carry tablet computers to help customers with their queries. The employees will be mobile to cater to the needs of the customers.
The banking organization’s officials also said that in certain cases, it will set up branch counters at larger branches. This is in collaboration with its other ventures such as Halifax and Bank of Scotland. These brands will witness changes. Lloyds Bank has already made the announcement of closing 400 out of its 1,950 branches. This will cause a loss of 9,000 jobs. Despite such a huge layoff in terms of the workforce as well as branches, the bank is confident that it will continue having the biggest branch network among all U.K. high street banks. For the convenience of its customers, it will still have bigger branches that come with a full range of activities. These branches will be useful for complex transactions along with businesses and small and medium enterprise banking.