Bank closures, digital exclusion and cyber risks

That this House believes high street bank closures have a detrimental impact on small enterprises, local business resilience, charities, vulnerable customers and the digitally excluded and adds to the vulnerability of UK financial services, especially to cyber threat from rogue actors; notes Lloyds Banking Group’s announcement to close 38 branches by the end of 2026; further notes that Lloyds Group was content to accept over £37 billion of public money when it needed bailing out during the financial crisis but has turned its back on customer needs without consultation; further believes that digital banking cannot be a full substitute for the comprehensive services provided through face-to-face services in bank branches, and that many complex and essential transactions are either very difficult or cannot be completed online; is concerned that these closures risk breaching the Financial Conduct Authority’s guidance on fair treatment of vulnerable customers and may breach Equality Act 2010 standards; also notes LINK’s regulatory responsibilities in assessing access to cash, but believes these assessments do not consider the full range of services required by customers and small businesses; is further concerned Lloyds has not conducted sufficient social or equality impact assessments, nor engaged in any substantive consultation prior to its announcement; and calls the Government to review current regulations in this regard and to introduce a duty on banks to consult local communities before any such branch closure announcements.