Bank branch closures have accelerated sharply, with nearly 100 outlets shutting each month over the summer, according to consumer group Which?. The group is calling for an immediate pause on closures, warning that banks may be rushing to shut branches before new measures to protect access to cash are announced.
Which? found that the rate of closures increased significantly in 2021. From 43 closures in January, the number surged to almost 300 between June and August – an average of 99 per month. That marks a 90% increase on the previous six-year average of 52 closures per month. In July alone, 129 branches closed, the equivalent of 45 per week.
Since January 2015, banks and building societies have shut or scheduled the closure of 4,734 branches. Banks have already announced plans to axe another 220 outlets in 2022. The figures come as UK Finance’s Access to Cash Action Group is set to outline measures to address the country’s access to cash crisis.
Which? chief executive Anabel Hoult said: “The alarming acceleration of bank branch closures has left many people who depend on them for essential banking services at risk of being cut adrift, which seems to fly in the face of work being done across the industry to protect access to cash.” She added that millions of people are not yet ready or able to bank digitally.
Earlier this month, TSB announced plans to close 70 of its 290 outlets in the first half of 2022, blaming the shift to online banking accelerated by the pandemic. In January, HSBC confirmed plans to close another 82 branches between April and September, leaving some customers having to travel more than 10 miles to their nearest branch.
