Lloyds Banking Group has confirmed 9000 job losses and the closure of 150 branches alongside plans to pump an additional £1 billion into digital channels over the next three years.
The widely-trailed announcement comes as Lloyds targets about 45% in cost-to-income ratio by the end of 2017
António Horta-Osório, Lloyds Group chief executive, says: "Over the next three years, our focus will be to adapt to the changes in financial services brought about by shifts in technology, changing customer behaviour as well as the evolving competitive and regulatory environment."
The branch network will continue to play a prominent role, he insists, but will evolve as part of a seamless multi-channel approach encompassing online and mobile banking.
"We are committed to ensure that over 90% of Lloyds and Bank of Scotland customers will continue to have a branch within five miles of their home while the Halifax branch network will be maintained," says Horta-Osario.
Branch transactions are falling 10% a year, according to the British Bankers’ Association as customers migrate from the high street to online and mobile channels. The trend has seen analysts from Deutsche Bank forecast a 75% drop in the branch networks of the country's six largest banks over the next decade.