Lloyds Bank: UK firm shifts to online banking strategy, jobs at risk - what it means for physical branches

• A major UK bank is overhauling its IT division, affecting around 6,000 employees
• The shift to a digital-focused model aims to modernise banking services
• Thousands of tech and engineering roles were reviewed, with new roles created
• But the move is raising concerns about the future of physical bank branches
• Santander has also announced plans to close 95 UK branches by the end of 2025

One of the largest UK banks has launched a major overhaul of its IT division, impacting around 6,000 employees.

Lloyds is accelerating efforts to modernise its digital banking services, with thousands of technology and engineering roles placed under review in recent weeks.

On Tuesday (March 18), staff were informed whether they would retain their current roles, transition into new positions, or face the risk of redundancy.

While most employees have been offered alternative roles, some may need to relocate to a different office or take on positions that require skills they do not currently possess.

What does it mean for Lloyds’ UK bank branches?

Lloyds has said it is shifting towards a more digital-focused model, which will enhance customer service - an effort that aligns with a wave of high street branch closures.

It aims to ensure the company has the necessary engineering and technology expertise to drive its strategic transformation.

The bank’s shift towards a more digital-focused model will understandably raise concerns about the future of its physical branches.

Many customers, particularly those who rely on in-person banking services, will be wondering whether this latest move signals further closures in an already shrinking high street presence.

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The UK has seen a steady decline in bank branches in recent years, as financial institutions respond to changing customer habits and the growing demand for online services.

Today (March 19), Santander announced plans to shut 95 of its UK branches by the end of 2025, putting 750 jobs at risk.

While Lloyds has not linked its digital transformation directly to branch closures, its strategic focus on technology suggests that more branches could be at risk in the future.

Customers and employees alike will be watching closely to see how the bank balances its investment in digital services with maintaining accessibility for those who still depend on face-to-face banking.

Read more: Santander closures: full list of 95 UK bank branch closures - news

‘Making changes means saying goodbye to people’

But while some positions are being eliminated, the bank is creating 1,200 new roles overall. These roles span various teams, including software and platform engineering, technology, architecture, and data.

Lloyds added that it currently has over 1,000 job vacancies in the UK, and is actively recruiting talent with the skills needed to support its digital transformation.

A spokeswoman for the group said: “Making changes means not only creating new roles and upskilling colleagues but also saying goodbye to talented people who have been part of the group’s success in the past.

“Where that is the case, we will do everything we can to support them with the changes recently announced.”

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