Warning as third of bank branches close in five years
ONE in three UK bank branches have closed their doors in the past five years, figures reveal today.
Hundreds more have slashed their hours, sparking warnings of a “serious blow’ to the elderly and customers who don’t use online banking.
There were 3,303 bank branch closures – 34 per cent of the network – between January 2015 and August 2019, according to Which?
The banking network has reduced in size from 9,803 branches to 6,549 over the period, with numbers offset by 49 branches opening.
The shrinkage has been driven by major high street names, according to the consumer group.
NatWest closed 638 branches, while sister bank RBS has shut 412 – 74 per cent of its UK branches.
Alarming
HSBC made 442 closures and Barclays shut at least 481 branches. But Which? said Barclays did not share full bank closure numbers with it, so the total could be higher.
Lloyds closed 404 branches, while Bank of Scotland shut 95 and Halifax shed 70.
Santander closed 294 outlets, the Co-op lost 152 and Yorkshire Bank shut 74, said Which?
And of branches that remain open, 298 operate with reduced opening hours of four days a week or less.
Eleven of these – all in Scotland – open for just one day a week, while 45 branches open for two days.
Caroline Abrahams, of Age UK, said last night: “The rate at which banks are closing local branches is a huge concern and is a serious blow for the millions of older people who rely on them.” Rural areas have been particularly hard hit. Researchers could not find any bank branches in the Wentworth and Dearne parliamentary constituency in South Yorkshire, population 98,000. North East Derbyshire and Stoke-on-Trent North lost six branches each, fourfifths of their networks. Central Devon and Carmarthen East and Dinefwr lost a similar proportion.
Jenny Ross, money editor of Which? said: “Banks are closing their branches at an alarming rate, which risks shutting many people out of vital financial services and affecting their ability to access their own cash. Bank branches play a crucial role within communities.
“The industry must ensure no-one is left behind by the digital transition and that banks don’t shut customers out of important banking services.”
SADLY, the death of the high street bank continues apace. New figures show that one-third of the UK’s branches have shut in the last five years, and the remainder have often reduced their opening hours. Between 2015 and last month, 3,303 branches closed.
True, consumer behaviour is changing and there is an inexorable move to the cashless society. But while these changes occur, banks have left many out in the cold, unable to move from the cash economy and disproportionately consisting of the elderly and those in rural communities.
It’s a shame that banks have not been able to serve these vulnerable people, who face losing access to their own money in places where cash remains king. They are customers too – and they should be served.