High street bank branch closures to be probed in Government review

The Government has ordered a probe into high street bank branch closures and their impact on customers.

The Treasury has commissioned an independent review into whether shuttering high street banks across Britain is ‘creating challenges for those who rely on in-person banking services.’

The Access to Banking Review will be led by Richard Lloyd, a former director of the consumer rights charity Which? and board member of the Financial Conduct Authority. He will provide a report and recommendations by October 2026. 

According to Which? figures, a huge 6,609 bank and building society branches closed between January 2015 and December 2024, representing 67 per cent of the branch network.

More have been added to that number since then, as banks push customers towards online services in a bid to cut costs. 

Bucking the trend, Nationwide Building Society has promised to keep all 696 Nationwide and Virgin Money branches open until at least 2030. 

While many customers like the convenience of carrying out transactions and checking balances on their phone, shutting branches leaves older and vulnerable people excluded. Small businesses who want to bank cash takings are also affected.

Nationwide says that keeping branches open has proved good for business, particularly in locations where it is the last branch in town.

Dame Debbie Crosbie, chief executive of Nationwide, told This is Money: ‘Some say branches aren’t commercially viable. Ours are thriving. This isn’t just a business decision. It’s a statement of values.’ 

Making its announcement on keeping branches open last November, the building society told us that a third of current accounts and more than a fifth of savings accounts were opened in branch in the six months to the end of September 2025. 

Closures are a particular issue in smaller towns and rural communities which may be left with no branches at all, forcing people to travel miles to bank in person.  

The review will assess the impact of branch closures, who is most affected, and where further action may be needed to ‘protect access to banking services’.

It follows the announcement of the Enhancing Financial Services Bill in the King’s Speech. This draft legislation is set to include a power which would enable the Treasury to ‘act swiftly’ where access to banking services is at risk. 

Richard Lloyd said: ‘Banking is an essential service that every consumer and community in the UK needs. 

‘That’s why it’s so important to take stock of the impact that the big shift to digital services has already had, and to understand the need for access to in-person banking in the future.’

Bank closures have led to the establishment of shared ‘banking hubs’ in some areas, funded by Cash Access UK, a not-for-profit funded by major banks, and run by the Post Office. 

These provide basic banking services, and representatives of big banks may be present on a rota basis to deal with customers’ enquiries. 

There are now more of these shared banking hubs in Britain than there are Barclays branches. 

Lucy Rigby, economic secretary to the Treasury, said: ‘We are supporting industry’s roll out of banking hubs , but we also need a clear picture of where communities are still losing out. 

‘This independent review will show us where the problems are and what further action may be required – and we will move quickly to legislate where the evidence shows it is needed.’