Lloyds Banking Group is set to discontinue its mobile bank branch service this year, as part of a broader plan to reduce 1,600 jobs across its branch network as the organisation pushes ever more to online services.

The banking giant is notifying staff and customers about the impending closure of the Lloyds Bank and Bank of Scotland mobile branches in May.

This follows the news last week that Sainsbury’s will soon close its Edinburgh-based banking division, with its banking products to be offered by “dedicated providers through a distributed model” in the near future.

Lloyds currently operates the mobile service as an alternative to traditional branches, utilising vans that visit various locations throughout the UK.

Customers have been able to access these mobile branches during specified days and times for services such as check cashing, cash withdrawals, bill payments, international money transfers, and general account inquiries.

However, Lloyds cited a decline in customer usage as the reason for discontinuing the service. A spokesperson stated, “Customers have used our mobile branches much less over time, and some locations now have as little as two customers using the service.”

The bank plans to introduce more community bankers in response, offering additional face-to-face banking support. This includes 32 new community bankers who will be deployed to areas where mobile branches are ceasing operations.

Community bankers represent the bank and set up temporary services in community spaces or banking hubs, providing assistance with payments and account management.

Recommended reading

• Year-on-year Increase in Financial Distress for Scots Firms, Data Shows
• UK Business Confidence on Downward Trajectory
• Sainbury’s to Cease Banking/Financial Services Offerings

Lloyds reassured customers that alternative banking options, such as online services, phone banking, the Post Office, and over 1,000 physical branches, remain available.

The decision to end the mobile banking service aligns with Lloyds’ broader strategy of reducing jobs and shifting away from face-to-face banking in favor of digital services.

Scotland’s Disappearing Bank Branches

Scotland was the first nation of the UK to see over half of its banks close, according to consumer reviewer and market researcher Which?

Data released in December, 2023, revealed that around 60% of Scottish bank branches have closed over the past nine years.

The  figures show that only 404 bank branches are left in the whole of Scotland after 636 banks and building societies closed their doors since 2015, according to Which?