Barclays reverses branch cuts as bank managers return to high street
Barclays is planning to expand its high street presence and revive the “bank manager” role after years of rapid branch closures.
The bank’s UK chief executive Vim Maru told the Times on Saturday that Barclays would increase its branch network beyond its current 206 sites, having already paused a programme that saw it shut around 80 per cent of its branches since 2019.
Maru said the bank was seeking to combine digital services with in-person support, as competition intensifies from app-based challengers such as Revolut and Wise, which have been expanding in the current account market.
“What we’re trying to do is something that allows us to differentiate in front of our customers,” he said, adding that customers would not be “stuck in some chatbot” when trying to access help.
Barclays has also brought back traditional job titles, including “bank manager”, reflecting what Maru described as customer demand for clearer, more familiar roles when visiting branches.
The move comes after a decade-long retreat from the high street across the UK banking sector, with almost 3,700 branches closing since 2016, with lenders shutting an average of eight sites a week.
Barclays alone closed more than 1,200 locations over that period, alongside significant cuts by rivals including NatWest, Lloyds Banking Group and HSBC.
The pace of closures has led to the emergence of so-called ‘banking deserts’, where access to physical banking services has become increasingly limited, particularly for vulnerable customers and cash-reliant businesses.
Digital challengers expand
Barclays’ decision to reopen branches and invest in physical locations reflects a broader reassessment within the sector, as traditional lenders respond to both political pressure and competitive threats.
Digital-first banks have captured significant market share in recent years, particularly among younger customers and small businesses.
Challenger lenders now account for around 60 per cent of gross lending to SMEs, according to the British Business Bank, while high street banks have been working to regain ground.
Maru said Barclays was targeting both retail customers and growing businesses, which he said still value face-to-face interaction alongside digital tools.
The bank is also continuing to invest in technology and AI to streamline processes and reduce administrative time.
Mortgage applications, for example, can now be completed in around 15 minutes, down from 45 minutes previously, following upgrades to the bank’s systems.
At the same time, Barclays is maintaining its involvement in shared banking hubs operated through the Post Office, which allow customers from multiple banks to access basic services in a single location.
These hubs have processed hundreds of millions of transactions in recent years as branch numbers declined.
Maru did not say how many new branches would open, but indicated they would be additional to the existing network rather than replacements.
The strategy forms part of a wider push by Barclays group chief executive CS Venkatakrishnan to increase investment in the UK, with plans to deploy £30bn between 2024 and 2026.
Despite ongoing speculation about potential acquisitions in the sector, Maru said his focus remained on organic growth.