Lloyds and other banks are slashing one service at Post Offices (Image: Getty Images)
Lloyds, Halifax, and Bank of Scotland customers are in for a significant shift as the Post Office’s cheque cashing service is set to be axed. Lloyds Banking Group has announced that starting from December 31, people will no longer have this facility at their disposal, forcing them to either visit their local bank branch or turn to mobile banking solutions for cheque deposits.
The group says its mobile app streamlines the process by enabling users to deposit cheques through a simple snapshot taken with their smartphone camera, which automatically reads the cheque details and processes the funds into their account, as reported by the A Lloyds Banking Group spokesperson told : “Most customers use our app as the easiest way to pay in a cheque, by taking a photo on their phone and letting us take care of the rest. Very few customers are choosing to deposit cheques in at the Post Office.”
This development comes on the heels of Lloyds Banking Group’s recent disclosure that it plans to shut down 135 bank branches between May this year and March 2026, affecting a number of locations including 60 Halifax, 61 Lloyds Bank, and 14 Bank of Scotland outlets.
These closures are in addition to the 102 branch shutdowns already scheduled for 2025.
Lloyds Banking Group has attributed the shuttering of bank branches to a significant dip in face-to-face transactions, with an official noting a drop of ten million fewer in-branch interactions in 2024 compared to the year before. The spokesman elaborated: “Over 20 million customers are using our apps for on-demand access to their money and customers have more choice and flexibility than ever for their day-to-day banking.”
As more customers turn to digital banking solutions, branch networks are thinning.
Halifax remains firm on its decision to close down 24 branches nationwide, reassuring that most of these branches are less than a mile away from other facilities offered by the group such as Post Office outlets. The bank promises that customers will not be left high and dry.
“Alongside our apps, customers can also use telephone banking, visit a community banker or use any Halifax, Lloyds or Bank of Scotland branch, giving access to many more branches. Customers can also do their everyday banking at over 11,000 branches of the Post Office or in a Banking Hub.”
In related news, Santander is set to phase out its text alert service on May 12 this year. This popular notification feature provides real-time updates about account balances, transaction details, and alerts for activities like exceeding account limits, which customers have signed up for through various means including digitally, over the phone, or directly at branches.
Santander, which serves 14 million customers in the UK, will cease sending text alerts for situations such as reaching or exceeding a pre-set account balance threshold, or transactions that exceed set limits. Furthermore, weekly balance update texts will also be discontinued.
However, the bank will continue to send alerts to prevent potential overdraft charges, including approaching overdraft limits or incurring unplanned overdrafts. According to Santander, customers can alternatively monitor their account activities by registering for online banking, mobile banking, or visiting a local branch.