You won’t recognise your high street bank in five years’ time
Small branches with more machines than staff are the future of banking for Britain’s biggest lenders, as Lloyds joins Barclays in creating a new kind of store.
Lloyds is understood to be looking into opening new branches in London – a radical change from the industry trend of cutting back on expensive stores in favour of online banking.
The UK’s biggest bank is a bit light on the ground in the capital as its brands historically grew up in other parts of the UK. As a result it wants more locations in London, but doesn’t want to spend a fortune on staff and space.
In part, that is because areas without bank branches tend to be poorer and play host to fewer businesses, meaning it is harder for the bank to serve these communities and still get a good return on the investment.
The solution? Small branches with a handful of staff and more machines and computers doing much of the work.
It is already the case that much of the banking is done remotely. More than half of Lloyds’ website hits are from mobile devices, and it is in the process of revamping the apps for each of its brands.
Lloyds is not the first bank to think more creatively – Barclays is cutting staff as it increases automation and is starting to hire floor space in Asda – but as the biggest bank in the UK, this move is surely a sign of things to come.