UK Banks Mandate Smartphones for New Savings Account Openings in Branches

Customers seeking to open new savings accounts at Lloyds and NatWest branches in the United Kingdom are increasingly required to bring their own smartphones or tablets, according to recent reports. This new policy means that simply visiting a branch with identification and application forms is no longer sufficient for new customers.

This development is prompting concerns among consumers who prefer to manage their finances in person and in a traditional branch setting. While banks argue that a digital shift aligns with cost-cutting and profit maximization, critics contend that it disadvantages savers who deliberately choose branch-based services.

Digital Requirement for New Accounts

Reports indicate that customers have been told they need a smartphone or tablet to open accounts, even at local branches. This requirement has been observed when attempting to open competitive savings products, such as a one-year fixed-rate Isa offering 4.55 percent, which was noted for topping best-buy tables for branch-based accounts upon its launch.

One reader, Howard Bond, recounted an experience at a Lloyds branch in Chelmsford, Essex, where he was informed that a specific one-year fixed-rate cash Isa could only be applied for online or via the bank's app, not in person. Similarly, Helen Sinclair attempted to open an account at a Halifax branch in Liverpool but was directed to online-only options.

Lloyds Banking Group, which includes Halifax, has stated that while existing customers can open accounts over the counter in branches with ID, new customers must use a digital process with their own devices. The bank indicated that branch colleagues would be available to assist customers through this digital process if needed. This comes as Lloyds announced further branch closures, with 31 Lloyds and 48 Halifax branches slated to close, in addition to 95 closures announced earlier.

NatWest has had similar policies in place for some time. For its fixed-rate Isa, customers can open it via the mobile app or online. For existing customers, opening an account by phone or in a branch is possible, but the bank explicitly advises bringing a personal digital device, such as a mobile or tablet, which staff will then use to help the customer open the account themselves.

Alternatives for In-Branch Openings

For savers who wish to open accounts in a branch over the counter without needing a personal digital device, building societies are presented as an alternative. Nationwide offers a one-year cash Isa at 4.5 percent. Other building societies, including Yorkshire BS (4.4 percent), Principality (4.35 percent), and Leeds (4.3 percent), also provide options. Local building societies such as Leek (4.4 percent), Furness, Nottingham, and Suffolk (all 4.35 percent), and Loughborough, Newbury, and The Melton (all 4.3 percent) are also noted for offering branch-based account openings.

Concerns over increased fraud, with criminals stealing nearly £1.3 billion in the UK last year according to UK Finance's Annual Fraud Report, add another layer to the debate, as some customers worry about the security of online transactions.