On a crisp Friday morning in Northampton, Abington Street is bustling with customers visiting HSBC, Barclays, Metro Bank and Nationwide. This scene defies a wider trend of more than 6,000 bank branch closures since 2015 as banks pushed customers online. However, a mini renaissance appears underway, with banks pausing closures and opening new sites.
HSBC UK pledged to keep its 327 branches open until at least 2027, while Barclays extended opening hours at 87 of its 200 branches. Challenger banks are also bucking the trend: Metro Bank opened three new locations in Gateshead, Chester and Salford, and Newcastle Building Society invested millions in a new city-centre branch.
Nationwide made one of the biggest commitments, promising to keep all 696 branches open until 2030. This was a relief for customers like Jatish and Sudha Shah, a couple in their 70s who prefer face-to-face banking. “I know we could do it online and I’m quite capable, but I prefer face to face,” said Jatish, who is hard of hearing.
Despite the overall decline in branch visits — one-fifth of UK customers have not visited in two years, according to KPMG — banks see value in physical locations. “There is a sweet spot where you try and push as many customers on to digital channels as possible, but it is still constructive to have physical locations,” said analyst John Cronin.
The trend is also attracting younger customers. More 18- to 24-year-olds visited a branch last year than those over 65, representing 72% of visits. “It’s a misconception that younger customers only care about digital banking,” said KPMG’s Peter Rothwell, noting they value branches for depositing cash from side jobs or gifts.
