Swathes of bank branches are set to close this year as lenders cut back their networks to boost flagging profits.
More than 200 UK branches were shuttered in 2020 as banks scaled back their presence despite the chaos which the pandemic inflicted.
Some banks did slow down or suspend their closures due to the coronavirus, meaning the 239 figure was the smallest since consumer champion Which? began keeping records in 2015.
Cutting back: TSB boss Debbie Crosbie plans to axe 164 branches, while 56 closures that Lloyds had earmarked for 2020 will begin in March
But the pace is set to pick up rapidly in 2021. TSB boss Debbie Crosbie plans to axe 164 branches, while 56 closures that Lloyds had earmarked for 2020 will begin in March. Other major lenders may follow.
Gareth Shaw, head of money at Which?, said: ‘The approach taken by banks to assess the impact of branch closures is going unchecked. Banks cannot be allowed to treat their Access To Banking Standard commitments as a window-dressing exercise.
‘The Financial Conduct Authority needs to review the way banks handle closures.’ Since January 2015, lenders have axed around 3,770 branches – o r approximately 55 each month. The total number of bank branches is a third smaller than six years ago.
Natwest, formerly RBS, has made by far the most cuts, getting rid of 1,084 branches. Lloyds has shut down 624 sites.
As branch closures have accelerated, so has the disappearance of cash machines – down 6,127 last year to 54,422.
Kevin Hollinrake, chairman of the All Party Parliamentary Group on Fair Business Banking, said: ‘Branch networks will still be used for years and banks have a responsibility to provide a solution for customers who rely on them.’
Lenders have justified their closures on the increasing use of online banking, claiming customers do not need as many branches. The Financial Conduct Authority has held working groups with major banks to determine how they will maintain access to cash for customers. But a decision has not been reached on what this will entail.
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