A new survey shows half of 16-24 year olds are upset that bank branches are closing permanently – further evidence that these closures are affecting all age groups
A crackdown on bank branch closures has left millions of young people angry and frustrated, new research shows.
Half of 16-24 year olds are furious that high street properties are permanently closing at a time when they need them, a survey shows. It’s further evidence that culls are affecting all age groups, not just the elderly, with seven in 10 saying they value face-to-face banking.
The number of branches closed since 2015 has now exceeded 6,000, and by the end of the year 33 parliamentary constituencies – including two in London – will be without a single branch.
Analysis shows Barclays closed the most, with the shutters down at 1,216 – one in five of the total. A further 645 are set to close this year, the Daily Express reports.
Stephen Noakes, Nationwide’s retail director, said: “Our research shows that almost three quarters of consumers of all ages are concerned about the frequency of closures, with half of 16 to 24-year-olds left disappointed after discovering their local branch has closed. Branches are valued both for day-to-day banking and for important points such as fraud concern and large sum of money transfers. That is why we have promised that wherever we have a branch today, we will stay until at least 2028.”
A survey by a building society in Swindon shows almost three-quarters are concerned about the speed at which branches are closing, with half annoyed that one is closing when they need it most.
The research found that 70% of consumers still value branches and when asked why, 41% said it was the lifeline they provide to vulnerable people, with one in five 16-24 year olds also citing this as the main reason. The number rises to 28% for 25-34 year olds and continues to rise with age.
Nationwide has doubled down on the scandal and put itself at odds with industry thinking by pledging not to close the branch, which is one, until at least 2028 – a two-year extension on a previous pledge.
Mr Noakes said: “Our research shows that people of all ages are frustrated and concerned about the rate at which branches are closing. Our customers tell us how much they rely on them. That’s why we’re proud to have the largest branded network of branches in Britain, a manager in every branch and a commitment to stay everywhere until at least 2028.”
Banks justify the decline by saying customers no longer want over-the-counter services as they increasingly bank online. Consumer Champion Which? has been tracking branch closures of major UK lenders since 2015.
Barclays leads the list of shame with 1,216, but NatWest Group, which also includes Royal Bank of Scotland and Ulster Bank, closed 1,360 outlets – the most of any banking group.
Lloyds Banking Group, made up of Lloyds Bank, Halifax and Bank of Scotland, has closed 1,146 sites. which one? said that while the rate of foreclosures appeared to have slowed after a peak in 2017, there had recently been an “alarming spike” with banks appearing to be in a race to the bottom.
Another 387 closures are planned for the rest of the year and 24 are planned for 2025. By the end of this year, 33 parliamentary constituencies with a total population of more than three million will not have a single bank branch.
Since the onset of Covid in 2020, more than 10,000 high street outlets have closed across Britain, mainly department stores, clothing stores and banks.
Sir John Timpson, 81, chairman and owner of the Timpson Group, which has more than 2,000 outlets, said: “One of the big advantages the high street can have over the next 30 years is the ability to provide people with a face-to-face service. If you go into a lot of really good retailers, you can still see people and a lot of the reason people will continue to go to the high street is the social interaction as well as actually buying goods and services.”
Sam Richardson, Associate Editor of Which? Money, said: “This milestone of over 6,000 bank branch closures in just nine years highlights the seismic shift that has taken place in terms of our banking habits and the character of the British high street.
“While some may hardly notice the closure of their local branch as they transition seamlessly to online banking, for others who depend on face-to-face services, the consequences can be catastrophic.
“This is not about ending closures entirely, but about ensuring that essential banking services remain available to those who still rely on them. It is vital that the government makes it a priority to open more hubs quickly so that people are not left behind.”