Lloyds Bank will stop opening several types of accounts in its branches, requiring customers to complete the process online or via its mobile app instead.
The lender has told staff they will no longer be permitted to open joint accounts, premium accounts, student accounts or executor accounts for customers visiting in person.
Branch employees will also stop handling current account switching requests from rival banks.
Internal guidance indicates that customers seeking these services will be directed to Lloyds’ website or mobile application.
The changes form part of a broader restructuring of in-branch services as the bank continues to reduce its physical footprint.
Staff will also be unable to process bankruptcy appeals, overdraft disputes or applications for basic bank accounts intended for people experiencing financial hardship.
Executor accounts, which are used by individuals administering the estates of deceased relatives, will also have to be set up digitally.
The move follows a decision last week to withdraw cheque deposit facilities at Post Office counters.
Lloyds are closing 95 more branches
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GETTYLloyds has closed 1,470 branches over the past decade.
A further 95 closures are planned between May this year and March 2027.
An additional 49 sites are due to shut by October under an existing programme.
Once all announced closures are completed, Lloyds Banking Group, which also owns Halifax and Bank of Scotland, will operate 610 branches.
Customers that prefer in-person service will feel frustrated by the change
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GETTY/PAMartin Quinn, of the Campaign for Cash group, said: “People do not want to talk to a machine, they want to deal with real people, and high streets up and down the country are being hollowed out by shop closures and removing more face to face banking services is a real kick in the teeth.”
Mark Brown, general secretary of Affinity, a union representing Lloyds staff, said: “By stopping new and existing customers from accessing everyday banking products and services and forcing them down the digital channel, Lloyds is signalling the death of branch banking and it raises the question of what the point of bank branches is.”
Catherine West, a member of the Treasury Select Committee, said: “It’s all very well banking on your phone but sometimes you need to talk to a real person, and bank branches offer a local connection, a sense of continuity and peace of mind.”
Chief executive Charlie Nunn has previously said that 97 per cent of customer interactions now take place through digital channels.
Those that struggle with online service may feel left behind
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The group has recruited 4,000 staff in technology and data roles in recent years as part of its digital strategy, The Telegraph reports.
However, nearly five million of the group’s 28 million customers do not use its online services.
A source at the bank said branch staff would retain discretion to assist customers in certain circumstances on a case-by-case basis.
The changes come ahead of an appearance by Jasjyot Singh, head of consumer relationships at Lloyds, before the Treasury Select Committee (TSC) next Wednesday to answer questions on financial inclusion.