You are here: Home - Saving & Banking - News -

More than 1,000 bank branches shut as customers go online

Written by: Paloma Kubiak
More than 1,000 high street banks have closed since January 2015 as footfall has fallen due to the rise in online banking.

HSBC has closed the largest number of branches, shutting down 321 outlets representing more than a quarter of its network in the past two years, according to research by campaign group Which?.

Smaller provider The Co-operative Bank has shut 117 branches, which is more than half of its network.

The regions with the most bank branch closures per 100,000 people are Wales, South West England and Scotland.

Bank closures

Here are the major high street banks’ branch closure numbers:

  • HSBC: 321 closures, 27% of network
  • RBS: 191 closures, 10% of network
  • Lloyds: 180 closures, 14% of network
  • Barclays: 132 closures, 8% of network
  • The Co-Operative Bank: 117 closures, 53% of network
  • Santander: 87 closures, 8% of network
  • TSB: 18 closures, 3% of network

Most of the banks cite the growth of online banking as the reason for closing branches. HSBC told Which? the number of visits to branches had fallen on average by 40% in the past five years as customers moved online.

In the past two years, the Post Office has also offered an alternative for bank customers to access some everyday bank services.

However, while 56% of adults used online banking last year, the campaign group said there are still around 20 million adults that don’t use it, some because they’re not online or because they have a poor broadband connection.

The research comes as a recent report found that banks could do more to support local communities when they shut branches and Which? said it’s important to ensure the needs of customers are being met when banks take such decisions.

Peter Vicary-Smith, Which? chief executive officer, said: “Access to the services necessary to make everyday banking possible should be simple and straightforward. We’ve seen some good examples of banks acting responsibly and in the interest of local communities when they close branches. However, banks can and must do a better job of working with their customers to understand their needs and those of the local community, especially when they are making changes to the services they offer or closing branches.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week