Building society that’s balancing the books...
Newcastle bucks the closure trend and opens up a new branch – in a library
WHILE banks are closing hundreds of branches, Newcastle Building Society is fighting back by opening a new one – inside a library. The single counter has been put at the back of the library in Yarm, Stockton-on-Tees and is the 28th branch to be opened by the Newcastle. It will be officially open to customers next month.
The opening is part of a £10million investment by the building society into its branch network to get more involved with local communities – and offers a stark contrast to major high street banks which are axing hundreds of branches to cut down on costs and force customers to use the internet.
Sharon Roberts, 41, from Ingleby Barwick in Stockton-on-Tees, visited the library last week with daughter Layla, three. She has another daughter Isabella, six.
The medical secretary says: ‘The building society was holding an Alice’s Adventures In Wonderland themed party to celebrate the branch opening in the library so we went for the fun.’
She adds: ‘Although the idea is unusual, it seems to work.
‘I am now going to open a couple of savings accounts for the children because it enables me to bank in a friendly environment where the family can also sit down and enjoy a good book.’
The building society insists the move is not a gimmick but a bid to adapt to the changing demands of banking services in the 21st Century.
Andrew Haigh, chief executive at the Newcastle, says: ‘It is all about people – and the relationship banks and building societies have with their community. The local council told us that a revamp of the library had opened up free space. We were all too happy to use it to open a new branch.’
He adds: ‘We are hoping the new arrangement will provide a win-win for everyone – encouraging more people to visit the library and also enabling us to better serve customers in a friendly environment.’
The plan to open new branches is in contrast to the closures preferred by most high street banks – amid a 40 per cent fall in branch usage in the last five years as customers turn to internet banking.
HSBC is closing more than 200 branches this year – three-quarters of which have already been axed. Lloyds is culling at least 60 this year with a further 200 being shut in 2017.
Royal Bank of Scotland – which owns the Nat West brand – is shutting at least 50 this year and 100 closed in 2015. Barclays has cost-cutting plans that could see the axe wielded on 400 branches over the next five years.
Although not stopping the tide of closures, RBS claimed it has found its own innovative way to serve 600 communities using ‘mobile branches’. It has 38 bank vans – 15 branded NatWest and 23 branded Royal Bank of Scotland. Meanwhile Bank of Scotland has seven travelling bank vans.
Newcastle is not the only player that believes customers value their high street branches. Nationwide Building Society is investing £500 million to revamp its 700-strong network while South East challenger bank Metro Bank has opened 42 outlets since launch in 2000 and is opening six more this year.
A spokesperson for the charity Age UK says: ‘Almost 10,000 banks have closed in the past 25 years – about half of all branches. It has left tens of thousands without access to basic banking. There are more than 4.5million people over 65 who do not use the internet who prefer a face-to-face service. We welcome anything that can help them.’