ATM Machine
Major banks are set to close 311 branches in the run-up to Christmas, triggering anger from customers and campaigners who warn the move will leave communities without vital face-to-face banking services.

Several of Britain's biggest retail lenders, including Lloyds Banking Group, NatWest Group and Barclays, have confirmed plans to shut a combined 311 high-street bank branches, intensifying the long-running retreat from face-to-face banking across the UK.

The closures, scheduled throughout 2026, represent one of the largest single waves of branch shutdowns in recent years and have sparked anger among customers, small businesses and consumer groups who warn that vital services are being stripped from communities too quickly.

Specifically, the Lloyds Banking Group alone accounts for the bulk of the 2026 cuts, with 71 branches (including Lloyds, Halifax, and Bank of Scotland) officially earmarked to close next year, adding to the approximately 240+ closures already announced by other major banks for 2025/2026.

The closures are scheduled to take place throughout 2026, with many beginning to shut down in the early months of the year, creating a backlash ahead of the busy festive period.

A significant number of closures are occurring in late December 2025, with banks like NatWest and Santander closing branches in the final days of the year, intensifying customer frustration immediately before the new year's closures begin in January 2026.

The Impact on Vulnerable Customers and Businesses

The most severe consequences of the branch closures will be felt by vulnerable customers, defined as those who lack digital literacy, suffer from physical mobility issues, or depend on cash transactions.

For many elderly people, the local branch provides essential social interaction and a necessary safeguard against financial scams, which are often perpetrated online.

The new closure wave follows a recent pledge by HSBC to stop all branch closure announcements until at least 2027, highlighting a divergence in commitment among major lenders regarding high-street access.

Moreover, the closures directly impact local businesses. While some transactions can be processed at Post Office counters, small retailers and sole traders frequently require face-to-face services for large cash deposits and accessing specialised business banking support.

Critics argue that forcing businesses to travel significant distances to deposit takings is not only inconvenient but also poses a serious security risk.

The Retreat from the High Street

The closure of 311 branches represents a dramatic acceleration of the trend away from high-street banking. The UK has seen more than 6,000 branches vanish over the last decade, transforming the landscape of local commerce and reducing the presence of traditional financial institutions.

For instance, Lloyds Banking Group is reportedly closing dozens of branches across its three brands, while NatWest and Barclays continue their aggressive consolidation programme. The sheer volume of concurrent closures is causing widespread alarm, leaving huge geographical areas designated as 'banking deserts' with no physical branch access for miles. Consumer champions are calling on the Financial Conduct Authority (FCA) to introduce tougher regulations requiring banks to demonstrate a clear commitment to providing reasonable access to cash and essential services before any further closures are approved. The FCA's new rules, which came into effect recently, now require banks to assess cash access needs and, in cases of significant gaps, ensure alternative services are available before a branch is closed.

Are Shared Banking Hubs the Solution?

The primary counter-measure proposed by the banks and industry body LINK (which oversees the ATM network) is the widespread implementation of shared banking hubs. These hubs offer a glimmer of hope for communities losing their last remaining branches, providing a central location where customers from any participating bank can conduct simple transactions. LINK has so far recommended 11 new banking hubs specifically for areas affected by the recent Lloyds Banking Group closure announcements.

However, the current delivery pace is insufficient to address the scale of the closures. While the concept of a shared facility is strong, only a fraction of the affected areas have secured a commitment for a hub.

For the hundreds of communities losing their branches, the replacement service is either nonexistent or faces significant delays. The 'fury' from customers is therefore justified: they are losing immediate, reliable access to their bank with no guaranteed, timely replacement. The urgency is heightened by the fact that the high-street presence is shrinking faster than in many other major European economies, underscoring a financial inclusion crisis that requires immediate regulatory redress.

Originally published on IBTimes UK