Lloyds Banking Group Plc is planning to shrink hundreds of its branches, with the "micro" branches to be staffed by as few as two people, the Financial Times reported April 3.

Staff would be armed with tablets and help customers make basic transactions. Customers could also be able to speak to other staff based elsewhere, such as mortgage experts, over a video link.

Lloyds also said it would launch about 20 large flagship branches.