Lloyds has kicked off a review of its multi-million pound CRM account, which has been held by Proximity since 2010, The Drum understands.
Proximity London has worked with Lloyds Banking Group since 2010, before it spun off from TSB. Following the split, the agency helped the brand establish a foothold in the market.
Proximity then won more work from the Group when it scooped the CRM account for Halifax in 2014.
However, it is understood that Lloyds is reviewing both the CRM and direct response advertising work for all of the Lloyds Banking Group brands with the aim of consolidating it into a single integrated agency
Proximity said it is defending the business and taking part in the pitch process.
Lloyds is in a period of transformation and is putting a greater focus on its digital services.
Earlier this week, it announced it would overhaul its digital offering, cutting 6,240 jobs and creating 8,240 new ones in the process.
The bank said it formed part of the £3bn commitment to invest heavily in technology over the course of a three-year strategic plan.
In the three months to 30 September, total revenue at the bank rose to £4.7bn from £4.6bn a year previously, while profit before tax fell 7% to £1.8bn.