Two thirds of banks have closed in the past 30 years
A “STAGGERING” two thirds of bank branches have closed in the past 30 years, according to a report yesterday.
A fifth of households are now almost two miles from their nearest location.
The closures are particularly hard on older customers reluctant to bank online, those on low incomes and small businesses which need to put in and take out cash regularly.
Consumer organisation Which? CRUSADE examined parliamentary records, which showed that there were some 20,583 branches across the UK in 1988.
This is now down to just 7,586 today, researchers found. Almost one in 10 people now has to travel more than three miles to a bank and six per cent of Britons are close to four miles away.
Post Office branches are supposed to plug the gap in banking services. But Which? found almost half of adults are unaware that they were available as an alternative.
Worst affected are those living in rural areas, with sparsely-populated parts of Scotland accounting for the 70 communities farthest from a bank.
But Which? data showed that the south-west and the east of England have also been disproportionately affected, with many small towns now left without a branch.
The report found the problem has been made worse by cuts to the LINK network of free cash withdrawal machines.
Which? Money Editor Ceri Stanaway said: “The true scale of bank branch closures in recent decades is staggering and has left millions of people struggling to access the vital financial services and cash that they need.
“For many there is simply no substitute for a dedicated branch and the wide range of services it offers.”
Which? called on banks to keep more branches open, a campaign backed by the Daily Express Crusade to save our high streets as they come under attack from the internet and soaring business rates.
Ms Stanaway added: “We want to see banks properly justifying the reasons for closure and taking into account their customers’ needs before shutting their doors – and shutting their customers out.”
The Post Office, with its network of 11,547 branches, is often proposed as a solution people hit when bank branches close.
But 45 per cent of those surveyed were unaware that they could use a Post Office for banking purposes and 47 per cent said they were unlikely to use one in the future.
Consumers who do use Post Offices complained of lack of staff, lack of expertise in financial services, long queues and a lack of privacy.
Post Offices cannot open or close accounts, transfer money between accounts, or replace debit cards.
Banks also usually demand that customers call into a local branch for anti-fraud checks, or make an appointment to discuss important legal documents, such as lasting power of attorney or grant of probate.
None of these tasks can be undertaken at a Post Office.