Opinion: we have no choice but to bank online

Like it or not, banks will keep stripping back their branch services, so we'll all have to get used to banking online or through our phones.

Lloyds Banking Group has become the latest bank to announce a raft of branch closures. 

The group said it would be shutting a total of 123 branches across its Lloyds, Halifax and Bank of Scotland brands.

It comes shortly after Barclays revealed plans to ditch 54 more branches in 2024, having already closed 180 throughout 2023. 

Going online 

There is a clear direction of travel here.

As more and more people do most, or even all, of their banking online then the big banks are only likely to strip back their branch services, whether that means reduced hours or branch closures.

That means that everyone is going to have to get to grips with banking online.

To be fair, online banking has brought about some great innovations.

I don’t have to go to my branch in order to pay in a cheque anymore, for example, I can simply take a photo of the cheque and upload it through my app.

Similarly, the app-based banks have won legions of fans not only because of the quality service on offer, but also because of the added benefits like free use overseas.

A look at the recent stats on customer satisfaction shows that it’s the online and app-based banks that are setting the standard that others need to meet.

If you’re happy to give an app-based bank a go, and are comfortable with that method of communicating with your bank, then chances are you will have a good experience.

Read: the best bank switching bonuses

But I don’t want to bank online

This isn’t to say that banking by app is better, not by any stretch.

Sure, it can be convenient being able to send payments, check balances and the like while out and about.

But there are plenty of times when using a phone is less than ideal ‒ as someone with fat fingers, it’s a regular cause of stress whenever entering new payment details, for example.

And I’m one of the lucky ones, since I’m relatively comfortable using technology.

There are plenty of other people who don’t feel quite so at ease using tech like a mobile phone for anything but calls, let alone for tasks as crucial as banking. 

Older people are an obvious example here, but they certainly aren’t the only demographic who will be challenged.

The vulnerable, those with disabilities, those who are neurodiverse, those with an inconsistent or unreliable internet connection at home.

Ultimately, there’s an awful lot of people for whom banking through an app is simply not an appropriate option.

There are also additional security issues that can arise with banking through your mobile phone. 

Unfortunately, if branches continue to close, or hours are scaled back further, then there may not be another option.

After all, you may end up in a situation where there are no branches in your town, or those that do offer terrible products.

If you can, it makes sense to get at least a little comfortable with online banking so that such a situation doesn’t actively damage your financial health.

To help you get started, have a read of our ultimate guide to online banking and banking apps.

Read: the best bank switching bonuses