Customers of Lloyds, Halifax, and Bank of Scotland are set to experience a change as Post Office cheque cashing services are scrapped. Lloyds Banking Group has confirmed that from December 31, this option will no longer be available, leaving customers to seek alternatives such as visiting their nearest bank branch or utilising mobile banking for cheque deposits.
The group says its mobile app allows customers to deposit cheques simply by capturing an image with their phone camera—a technology that automates reading the cheque details and processing the deposit into their account, reports the Mirror.
A spokesperson from Lloyds Banking Group shared insights with The Sun, saying: “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.”
The update follows Lloyds Banking Group’s announcement of the upcoming closure of 135 bank branches from May this year until March 2026, impacting various sites including 60 Halifax, 61 Lloyds Bank, and 14 Bank of Scotland branches. This adds to the already planned 102 branch closures for 2025.
Lloyds Banking Group cited a decline in face-to-face transactions, with ten million fewer in-branch interactions recorded in 2024 compared to the previous year. A spokesman further explained: “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.”
Branch closures and service adjustments will in the main be driven by the increasing pivot towards digital banking solutions. Halifax is defending its plans to close 24 branches across the country, saying the vast majority of locations are within a mile of other banking services provided by the group, such as Post Office branches. The lender says it guarantees alternative access points for impacted customers.
“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.”
This development comes on the heels of Santander announcing that they will discontinue their text alerts service starting from May 12 this year. The service, which is opted-in to by customers either digitally, telephonically, or in-person at a branch, informs customers with weekly updates about their bank balances and transactions, as well as notifies them of other activities, such as breaching account limits.
Santander, serving 14 million customers in the UK, will halt the text alerts for scenarios such as reaching or surpassing a predetermined account balance threshold, or transactions that fall beyond the set limits. Additionally, weekly balance update text messages will no longer be dispatched.
However, the bank will still issue alerts to deter possible overdraft charges, including nearing overdraft limits or incurring unarranged overdrafts. Santander says consumers can track their account activities alternatively by signing up for online banking, mobile banking, or visiting a local branch.