One in four Brits cling to bank branches as closures soar
Brits remain keen for in-person banking even as high-street sites shutter, a fresh report from the Financial Conduct Authority has revealed.
One in four current account users still opted to use branch services in the year to May 2024 despite their waning availability.
The figure marks a steep drop from 63 per cent in 2017, but reflects the exodus of sites as lenders focus instead on upping their digital offering.
There are 378 branch closures lined up for 2025 so far, which have left Brits scrambling to access advice and key banking services.
The number of monthly branch users slumped to 18 per cent, compared to 40 per cent in 2017.
The findings come after a scathing Treasury committee report warned the UK risks becoming a “two-tier” society if the government does not act on cash acceptance.
Committee chair Dame Meg Hillier MP said: “As a society, we must avoid sleepwalking into a situation where cash is no longer widely accepted.
“This is the beginning, not the end, of our scrutiny of this issue. The government needs to take this seriously.”
The FCA’s latest Financial Lives report showed over a quarter of current account holders said they had found it more difficult to withdraw cash due to reduced hours or branch closures.
Post Office becomes branch of last resort
Some Brits have been forced to turn to the Post Office, which renewed its five-year banking deal last month, as banks ditched their sites.
The Post Office opted to keep its bank deal after research from the company found nine in ten people believe it is important to maintain access to cash.
It said there have been 760 million transactions at its sites between business and personal customers since January 2020.
Lenders partnered with the Post Office in 2017 for “The Banking Framework”, and extended the collaboration for three-years in 2022.
Older generations have been particularly stung by the closing epidemic.
The FCA’s report showed seven per cent of account holders – around 3.3 million – did not bank online, leaving them vulnerable to branch shutdowns.
But this figure jumped to 17 per cent among those aged 65 and over. And for those aged 85 and over it rocketed to 46 per cent.
Santander UK’s provisions surged in its first quarter as backlash to site closures mounted.
The Spanish-headquarted lender is set to close 95 branches as part of a structural overhaul beginning in June 2025.
But provisions for liabilities and charges soared 69 per cent to £140m in the first-quarter, £42m of which the firm said was driven by “charges relating to changes to our branch network.”
As backlash continues to grow, Barclays’ boss CS Venkatakrishnan pledged at the firm’s annual general meeting it would not close any more branches until the end of 2027.
HSBC has also said it would not announce any new branch closures until at least 2026, while Nationwide has said current branches will all remain open until at least 2028.