The hidden signs YOUR local bank is about to close: Experts reveal who is the worst culprit and who’s staying put, as they warn of avalanche of further closures
It’s no secret major banks have been on a branch-cutting rampage in the past decade – but another wave of closures could be on the horizon, experts warn.
Without branches, local businesses struggle to process cash, customers who prefer face-to-face banking and are uncomfortable handling their finances digitally are shut out and the community suffers.
Here, we lay bare the real extent of branch closures nationwide – and what could be lying in wait.
Biggest culls so far
Of all the major banks, the worst offender for branch closures by far is Barclays, our analysis of figures from Nationwide shows.
It now has just 206 sites across England, Scotland and Wales, down from 1,374 in December 2015 – an 85 per cent cull. With 20 million customers, it means there is just one branch per 97,087 customers.
Without branches, local businesses struggle to process cash, customers who prefer face-to-face banking and are uncomfortable handling their finances digitally are shut out and the community suffers
In the past few weeks, banking insiders have raised fears that more closures could be on the horizon
NatWest has shed 73 per cent of branches, from 1,104 to 290, and Lloyds Banking Group, including Lloyds, Halifax and Bank of Scotland, is going from 2,193 branches in 2015 to 610 once all the planned cuts bite – a 72 per cent drop.
The fourth worst offender is HSBC, with its network shrinking 66 per cent from 979 branches to 327, while Santander has shuttered 58 per cent of sites, from 864 to 363.
NatWest Group will soon have one branch for every 57,971 customers, while HSBC has one per 46,177, our analysis shows. A decade ago, there would have typically been one branch per 16,000 to 20,000 customers for each of the big banks.
More closures ahead?
In the past few weeks, banking insiders have raised fears that more closures could be on the horizon.
Lloyds is reportedly considering an end to the Halifax brand as part of a sweeping review. This would see all Halifax customers migrate to Lloyds Bank. There are concerns Lloyds could close Halifax branches on high streets where there is also a Lloyds branch as it could argue it would not need two Lloyds branches in the same vicinity.
Rachel Springall, of rates scrutineer Moneyfacts, says: ‘The demise of high streets will get even worse if banks consolidate brands, yet there are vulnerable people across the UK who need in-branch support. Small businesses also need a branch to deposit or withdraw cash.’
The Government has ordered an independent review to investigate 6,700 branch closures since 2015
The TSB brand is also on the chopping block after its takeover by Santander, which is said to be gearing up to run the combined businesses under the name Santander UK.
That could mean TSB branches in areas where there is a Santander bank could also face closure.
Our analysis shows there are 178 locations with a Lloyds and Halifax branch in close vicinity and 103 places with a Santander and TSB branch. If the Halifax and TSB banks disappear, it could result in another 281 branch closures.
Lloyds says no decision has been made on the Halifax brand’s future. Santander says not to expect any ‘immediate changes’.
Glimmers of hope
Nationwide has pledged to keep open the 91 branches it acquired in purchasing Virgin Money.
It also extended its branch promise late last year to keep all of them open until 2030.
So Britain’s biggest building society will become the UK’s largest branch operator for the first time next week, leapfrogging Lloyds when it closes two branches in Birmingham and one at London Bridge.
Nationwide says in-branch current account openings were up 21 per cent last year and where Nationwide is the last branch in town, that figure was 29 per cent.
In the battle for current account customers, Nationwide attracted 289,778 switchers from rivals in an 18-month period, making it number one by a considerable distance.
Barclays UK chief executive Vim Maru admitted last month that it had closed too many branches, had no more slated for closure – and hinted it could open new ones. He also revealed plans to reintroduce the bank manager title.
HSBC also has no more closures planned. It, along with Barclays, has been refurbishing branches, with a focus on its ‘Premier’ offering for wealthier customers.
Last June, HSBC revealed its first wealth centre in St James’s, London, geared towards Premier and Private customers, with another opened in Leeds last September.
Lloyds says where branches are well used, and there is high demand, it invests in them. It is opening a new branch in Croydon next month.
NatWest says since 2020 it has invested more than £115 million in branches, including £20 million last year, and plans to increase this over the next three years. It has opened new branches in Inverness and at Merry Hill in the West Midlands.
The Government has ordered an independent review to investigate 6,700 branch closures since 2015.
It is concerned about financial exclusion of the elderly and vulnerable. The Treasury has signalled it will use the review’s findings, this October, to legislate if necessary.
