Barclays Announces High Street Banking Revival with New Branches and Bank Manager Roles
In a significant strategic reversal, Barclays is plotting a major revival of high street banking by planning to open new branches and bring back the traditional 'bank manager' role. This move marks a stark departure from the industry-wide trend of branch closures and digital-only services.
Executive Vision for Personal Banking
Vim Maru, chief executive of Barclays UK, stated that the bank aims to expand its physical 'footprint' through branch expansion. He emphasised a commitment to preventing customers from getting 'stuck in some chatbot' when seeking banking assistance. Maru, who joined Barclays in 2023 and took over UK operations in 2024, highlighted that halting branch closures was one of his 'early decisions' to prioritise personal banking.
'What we're trying to do is something that allows us to differentiate in front of our customers,' Maru told The Times. 'Of course we're going to be great in digital - but we're going to be there for you when you need some help and support. You're not going to be stuck in some chatbot trying to get out of the loop and trying to speak to someone.'
Context of Branch Closures and Market Shifts
This change in direction comes as online app-based accounts, such as Revolut and Monzo, continue to gain traction in the current-account market. Since 2018, Barclays has axed more than 800 branches, leaving only 206 open across the UK, according to the company's latest annual report. Maru dismissed claims that these closures occurred too quickly, noting that 'physical presence' is still 'valued' by customers.
He added: 'The branch manager or bank manager is back. Most customers come in and they want to talk to the bank manager from time to time.'
Investment and Industry Trends
Maru's efforts are supported by CS Venkatakrishnan, the Barclays chief executive, who has overseen plans to invest £30 billion more in the UK from 2024 onwards. This investment includes funding for artificial intelligence to streamline operations and 'maximise our colleagues' time talking to customers'.
However, the broader banking landscape tells a different story. According to consumer champion Which?, banks and building societies have closed 6,214 branches since January 2015, at a rate of approximately 53 each month. In a contrasting move, Lloyds Banking Group announced plans in January last year to close 136 high street branches, citing a customer shift away from in-person banking to mobile services.
- Lloyds will shut 61 Lloyds branches, 61 Halifax sites, and 14 Bank of Scotland locations between May this year and March 2026.
- This decision underscores the ongoing tension between digital convenience and physical accessibility in the banking sector.
Barclays' Commitment to Physical Presence
In a statement, Maru elaborated on Barclays' strategy: 'Even in the digital world, many customers still value physical presence and the ability to talk to our colleagues when they need support. In response to changes to where people work, live and shop over the last few years, we have relocated some of our branches and extended branch opening hours, adding 33,500 hours of in-branch availability per year.'
He concluded: 'We are looking to enhance and invest in our branch footprint alongside our contact centres and app as we continue to meet the changing preferences of our customers.' This approach positions Barclays uniquely in a market increasingly dominated by digital-only players, aiming to blend technological efficiency with personalised, face-to-face service.
