British banks are facing mounting pressure to ensure continued access to cash for the general public, leading some to commit to maintaining branches open.
According to The Mail on Sunday, HSBC has become the latest bank to do so, pledging to not close any more branches until 2026. The bank maintains a network of over 327 branches throughout the UK, and like others has been closing the doors on some over recent years.
British retail banking in general has been in decline for many years, with thousands of local branches closed since 2015. A general shift towards digital banking among consumers, accelerated during the COVID-19 pandemic, has driven this shift.
Digitally familiar customers – which in today’s day and age refers to a majority – regularly use digital banking services via either a webpage or an app. Web banking is used for various services from merely checking a bank balance to setting up payments to applying for credit cards, overdrafts and loans.
Banks have subsequently seen a drop in the number of people visiting local branches, and as a result have been shutting down said branches.
This year has seen Lloyds and TSB shut down some local branches, whilst Halifax and Bank of Scotland have outlined plans for closures, Sainsbury’s announced a shut down of its Sainsbury’s Bank facility, and Metro Bank initiated a review of its opening hours.
Some customers still favour retail banking, however. In particular, elderly banking customers prefer visiting in-person branches, and concerns have been raised about the access these groups, as well as communities in general, have to cash.
The Labour Party began raising concerns about cash access months prior to its electoral victory in July 2024. The party’s election manifesto reiterated a policy of creating local banking hubs, with possible centres for such hubs being local post offices.
It has not been entirely quiet on the front of retail banking, however. Nationwide in particular focuses on, and is keen to widely publicise, its extensive high street presence.
This has included a marketing campaign revolving around its retail banks, making comparison to competitors – this did earn it the ire of the Advertising Standards Authority (ASA), however.