Portsmouth council backs banking hub after Lloyds closure in Southsea
Portsmouth City Council has backed calls for a banking hub in Southsea following the announcement that Lloyds Bank will close its Palmerston Road branch on June 2.
A banking hub is a shared space, often in Post Offices, where customers of different banks can carry out transactions like cash withdrawals, deposits, and bill payments.
Years ago, Southsea had several banks and building societies, but closures have left Lloyds as the last remaining branch. With its planned closure, the area will be left without a physical bank. During a full council meeting, councillors supported a motion to explore creating a banking hub.
Introducing the motion, Cllr Hugh Mason said it was not about nostalgia for “the good old days” of banking but about finding a “2025 solution” to meet local needs. He acknowledged that Lloyds had seen fewer than 1000 customers a month but argued that many people, especially older residents, still rely on face-to-face banking.
He highlighted that many older people prefer counter transactions over using cash machines, particularly in bad weather or when they feel unsafe. He also pointed out that banking hubs in other parts of the country had been very successful.
Cllr Charlotte Gerada strongly supported the motion, calling Lloyds’ decision "really odd" given planned developments that will bring more residents to the area. She said banks are anchor institutions for high streets and argued that their closures weaken local shopping areas, a problem seen across Portsmouth and the rest of the country.
The council agreed to write to the chief executive of Lloyds Bank, asking them to reconsider the closure while a banking hub is developed. It also committed to asking major banks to send representatives to discuss keeping a counter service in Southsea. Additionally, the council will request that the local MP raise the issue with ministers and attend meetings on the matter.
In January, Lloyds Bank announced the closure of its Southsea branch, citing a decline in in-branch usage. The bank explained that most customers now use mobile or online banking, which led to the decision to close the branch.