UK Banks Are Coming Together to Support Customers in the Face of Branch Closures

We’re all more than familiar with the pattern of branch closures in the banking business here in the US by now. However, the situation is no less bleak across the Atlantic for our friends in the industry over in the United Kingdom.

UK bank branch numbers have almost halved since 2015 and the rate does not seem to be slowing any time soon. In fact, data from the UK’s Financial Conduct Authority (FCA) shows that 267 bank and building society branches were closed permanently between April and June of 2021, leaving the overall network 4.55 per cent smaller at 5,599.

The knock-on effect of these closures it that they leave significant numbers of people without a physical bank branch near to where they live – posing massive problems for the elderly or infirm, or simply those without easy access to transportation.

A Coalition of Banks

However, several of the UK’s biggest banking brands have been alerted to this crisis and have established a partnership which will see them join forces to make sure as many people as possible can still access essential financial services.

Barclays, HSBC UK, Lloyds Banking Group, Nationwide building society, NatWest, Santander UK, TSB, and Danske Bank have all signed up to the agreement with the Access to Cash Action Group and established a long term commitment to ensure widespread cash and banking access for communities where brick-and-mortar services are limited.

The agreement means that, if a bank involved in the pact plans to close a branch it is obligated to inform independent ATM network provider, Link. Link will then assess what the impact of the closure will be regarding cash and other service provision, looking at the community as a whole, including its residents and businesses, and consider whether a new solution is needed.

If a solution id decided to be in order, Link will work with the local community to establish a new location at which banking services can be carried out. For example, Link may work with the local Post Office to see if a banking hub could be established within its walls. Many UK Post Offices already offer banking services, so the infrastructure is already in place to facilitate this kind of transformation.

"Cash use is still about 35% below pre-Covid-19 levels," those behind the initiative said. "However, millions of people across the UK still use cash daily and many businesses need places to withdraw and deposit it. Link has already assessed most communities where closures have taken place over the past year and new services are planned for 2022. The Post Office is also ready to provide new and improved dedicated cash services in up to 30 branches."

Nationwide

One brand involved in the partnership which is going the extra mile to provide banking services to those communities most impacted by branch closures is building society, Nationwide – not to be confused with the US based insurance and financial services company of the same name.

This comes in the form of a Community Support Van. The van is touring the UK and inviting people in to get advice on how to make the most of their bank, gain confidence banking online, and better manage their finances.

"While many people have been able to make the transition to online banking conveniently and easily, the Society recognizes it is sometimes tougher for others," said Nationwide in a press release. "This is why Nationwide is offering additional support in the form of the Community Support Van as well as in-branch and virtual Tea and Tech sessions. The van, will be hosted by experienced Nationwide staff equipped with iPads, enabling people – regardless of who they bank with – to benefit from digital demonstrations to confidently manage their finances online."

Those wishing to take advantage of the Community Support Van only need to show up and there’s no need to make an appointment. Unfortunately, the van will not be able to offer banking services itself, but Nationwide hopes that it can better prepare people for a world with fewer brick-and-mortar branches on the high street.

"Whilst we remain committed to investing in our branch network, we’re always exploring new and innovative ways to help support our members, and our Community Support Van is another example of this," said Director of Retail Distribution and Servicing, Amanda Beech. "It will be in local communities up and down the country, with Nationwide employees available to talk to people about any of their financial needs and answer any digital and online banking questions, from how to bank online to advice on fraud and any other concerns they might have."

Final Thoughts

With the inexorable closures of bank branches showing no signs of slowing down anytime soon, it’s encouraging to see big brands coming together to provide solutions to the communities which will most significantly affected by them.

It’s especially refreshing to see a brand such as Nationwide making efforts to better prepare people for online banking as well as equipping them a wide range of financial knowledge and advice.

Strengthening Your Institutions Role in the Communities You Serve is set to be a keynote topic at Future Branches Boston 2022, taking place in July at Westin Copley Place, Boston, MA.

Download the agenda today for more information and insights.