The group claims the move will offer greater choice and flexibility, although it has not confirmed when the changes will come into effect.

The decision comes amidst a trend of widespread bank branch closures across the UK, fuelled by the growing popularity of online banking. Lloyds itself has shut numerous branches and reduced its workforce as part of an ongoing business overhaul.

While the new policy could improve branch access for some, concerns have been raised that it may ultimately lead to further closures. The BTU, representing Lloyds employees, suggested the change is primarily about cost-saving rather than customer benefit.

Despite the shift to digital banking, recent data shows a slight resurgence in cash use, with shoppers finding it helpful for budgeting. Campaigners have expressed concerns that branch closures could make it harder for businesses to process cash, potentially leading to a decline in its acceptance by retailers.

Currently 55 Lloyds Banking Group branches across the UK are still scheduled to close this year. When these are completed the bank will have 447 Lloyds, 341 Halifax, and 104 Bank of Scotland.