Lloyds is ramping up its shift to digital with the axing of around 1,600 branch roles, the UK bank has confirmed.

As first reported by Reuters, the job cuts are part of an industry-wide trend to cut costs in tough economic conditions, despite a 2023 that saw many financial institutions draw profits.

Lloyds confirmed the cuts to the news wire, adding that the bank plans to create 830 roles in its ‘relationship growth team’ – an expanding part of the business that seeks to understand and provide support for customer needs across branches, video meetings and phone calls.

The bank said that the net result of changes will be a loss of 769 roles.

In comments to Reuters, a spokesperson for Lloyds said: "As more customers choose to manage their day-to-day banking online, it's important our people are available when it matters most.”

They added that there would be no cuts for the “most junior” positions, with voluntary redundancy offered in some situations.

Lloyds previously announced a separate reevaluation of back office roles in November with put around 2,500 jobs at risk.

Elsewhere, Lloyds may face an estimated £2 billion bill to compensate customers who might have overpaid for motor finance between 2007 and 2021, with the Financial Conduct Authority (FCA) launching a review into the market earlier in January.

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