Lloyds Banking Group is shutting down its mobile banking service this year, after revealing plans to shed 1,600 jobs across its branch network as it moves ahead in the shift towards online banking.

The banking giant has been informing staff and customers of plans to scrap the Lloyds Bank and Bank of Scotland mobile branches in May.

Lloyds runs the service as an alternative to high street branches, with vans visiting towns and cities across the UK.

Customers can visit the mobile branches during set days and times, for services including cashing in cheques, withdrawing cash, paying bills, sending money abroad, or for general inquiries about their accounts.

But Lloyds said it has decided to end the service because it is being used less by customers.

A spokeswoman said: “Customers have used our mobile branches much less over time and some locations now have as little as two customers using the service.

“We’ll be introducing more community bankers, alongside the other options customers already have for their banking, including the Post Office, online, our mobile apps, phone banking, video services and web chat.”

Lloyds published details of its decision to close the service for each location, including a breakdown of how many customers regularly visited the specific route over the past six months – with some areas showing a single-digit figure.

Each mobile branch helps 14 customers on average, with visits falling by 90% since 2018.

It said it will be sending out 32 more community bankers to provide face-to-face banking support in areas where a mobile branch is stopping, alongside the existing network.

These are representatives from the bank who set up a temporary service in community spaces or banking hubs, where people can make payments or get help managing their accounts.

Lloyds said people can still do their banking online, over the phone, or at a Post Office, and at its more than 1,000 branches across the UK.

The decision to axe the service comes as the group revealed it is cutting jobs across its branches as part of an ongoing shift away from face-to-face banking and towards mobile banking.

It said just 8% of its customers choose to visit high street branches as the sole way to manage their money.

Some 830 jobs are being created to expand the bank’s “relationship growth” team, which it said will improve its service for customers.