In a statement Lloyds confirmed protection would no longer be available “on a stand-alone basis” across Lloyds, Halifax and Bank of Scotland branches after "significantly reduced customer demand”. Protection will still be offered as part of the mortgage price process.
Staff were told yesterday that the changes would result in 1,250 role reductions, following news last month that 9,000 jobs and 200 branches would be cut in total.
The bank - part-owned by the taxpayer - said the cuts would take place over the next three years as customers habits continued to shift towards online banking services.
Earlier this year, the British Bankers' Association published research showing that UK-based customers conducted almost 40 million mobile and internet banking transactions each week in 2013, a huge increase on the previous year.
The branch closures will mainly affect urban areas where there are already high concentrations of Lloyds branches.
The statement from Lloyds said:
“Lloyds Banking Group is today announcing around 1,250 role reductions as part of the reductions recently announced in the group’s strategic update.
“The vast majority of roles impacted are as a result of changes the group is making to the way it offers protection products... As a result of significantly reduced customer demand, these products will no longer be available on a stand-alone basis. We will continue to offer protection as part of the mortgage sales process.
“Where it is necessary for employees to leave the company, it will look to achieve this by offering voluntary redundancy.
“The group has an effective track record of managing change. In the past three years since 2011, over 90 per cent of role reductions were achieved through a combination of natural attrition, redeployment and voluntary redundancy.”
