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11,746 And Counting: The Decline Of The High Street Bank
Sep 1 2016
Darren Best
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Big Four
All of the big four are closing their branches at an alarming rate. HSBC cites a 40% reduction in customers visiting branches as more are turning to telephone and internet banking. As a result, they have closed more branches than any other. Barclays are the second highest in branch culling, and in 2014 announced their plan to close 400 more, at a rate of about 100 per year. RBS, which is 73% owned by the taxpayer, cut around 1400 jobs between March and May 2016, and Lloyds shut around 20 branches in July 2016 alone.Affluence
A study by the University of Nottingham found that the least affluent areas of the UK have suffered a combined two thirds of net closures between 1995 and 2012. These are usually areas with higher unemployment rates and above average renting from public sector. These closures leave communities struggling to access banking facilities, meaning they must travel further to visit one.Campaigns
A number of campaigns have been set up by citizens who are angry about losing their local bank. A report by ComRes found that 70% of people surveyed think it’s important to have their local bank branch close by. They argue that even the most tech-savvy people may need occasional face-to-face support from a proper bank. Other reasons for their campaigning is the axing of bank staff jobs, the accelerated death of the British high street, and environmental concerns as people become more reliant on using cars to get to their closest branch. There have been efforts by the government to ensure that Post Offices can be used for some banking transactions, but campaigners have argued this is not good enough as Post Office services can be limited. Lloyd's Bank, back in June was scrutinised for its closure of its popular branch in Reading and Theale. One local Councillor, took the matter into his own hands and launched a campaign calling for Lloyd's bank to reverse its decision to close a bank in Theale in Berkshire, leaving the community without a bank at all. The banking giant, claimed that the closure was due to the branch in Theale only attracting 13 customers on a regular basis, meaning it had no reason to stay open. The decision to close was rejected by hundreds of residents who signed a petition to keep it open. Unfortunately, it closed in June and Lloyd's Bank released a statement claiming: ‘the majority of customers also now regularly use alternative branches or channels to complete their banking needs.’ The spokeswoman added that the ‘closest branch is in Broad Street, which is within walking distance of Market Place’. Lloyd's decision to close two of its most popular branches is the latest to be axed as part of a nationwide cast-off, as banks adapt to the changing technological behaviour of customers. Lloyd's, HSBC, Santander, Royal Bank of Scotland, Barclays and the Co-operative, shut more than 600 bank branches and more than 3,000 branches have closed over the last decade.Alternatives to banks?
- Free to use ATMs and proper information on how to use their features
- Post Office branches close by and more awareness that they can be used for banking
- Alternative bank branches close by
- Ability to get cash from retail outlets