BANKS across the country plan to close hundreds of branches this year.
According to banking experts, from 700 to 800 branches could see the chop in 2022.
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Toward the end of last year, Lloyd’s and Halifax said they would close 48 sites, while TSB announced in November that it would axe as many as 70 branches.
Santander shuttered 111 sites before last summer, and HSBC announced it would close 82 branches in 2021.
Many of the providers revealed the changes were due to declining branch use and more customers using digital services.
Lloyds and NatWest are rumoured next to confirm plans of more branch closures – and that could happen as early as the end of this month according to The Mail on Sunday.
It’s because providers are looking to streamline their own costs, especially as the UK faces a nationwide cost of living crisis, but it is walk-in branches that won’t make the cut.
Virgin Money announced in September last year that it will close 31 branches as it “adapts to changing consumer demand”.
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And that’s because digital banks are on the rise – but that doesn’t help shoppers and bill payers who need to withdraw cold hard cash on their local high street.
Physical cash has seen a decline in recent years, especially spurred on by the pandemic – some are still reluctant to physically dip into their pockets, ever since Covid restrictions discouraged the paper form of payment.
More Brits are inclined to use cards for payments nowadays.
After a rule change rolled out on October 15 last year, shoppers can now make contactless card payments of up to £100.
That means for big ticket spends they can stick to using their card easily, without having to thumb through cash.
There are approximately 53,000 ATMs in the country currently and most withdrawals come from free-to-use machines usually on the outside of a bank branch.
But if the branches dissappear then the ATM’s could follow suit making it harder for Brits to take out money.
New rules came into force at the start of this year though, to look at ways of preserving access to cash.
Essentially they mean that if a bank is planning a branch closure, the town it’s in will be reviewed to see if there are other opportunities for the community to still get out cash – and whether they need to be improved to keep up with demand.
That could be that a new free-to-use cash machine will be installed, or a new counter at the local post-office is put up.
But towns that have already lost a bank won’t necessarily benefit from that and there is nothing to stop a bank shutting the last branch, even if area recommendations are made.
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