In the last decade, the United Kingdom has witnessed an alarming rise in the number of building society and bank closures. Over six thousand branches have permanently closed, at a monthly average of fifty shutting their doors for the last time. This number represents over sixty-three percent of the total number of bank and building society branches that existed in the United Kingdom in 2015.
Why are bank branch closures happening?
Since 2015, the country has seen a massive fall in the number of nearby branches. This appears to have been motivated by the movement in the direction of pursuing online banking and the increasing costs linked to keeping branches open. The banking organisations point to the trend of increasing numbers of members of the public choosing digital banking services and as this happens decision makers observe the lower numbers of people visiting branches, and the costs associated with keeping them open is seen as not worth it.
Effect on local areas
For people in local areas, the closure of a bank branch may be frustrating, as they may have no option but to go to the trouble of travelling further afield to use the financial services provided by a bank, and that can cause significant difficulties for many. When bank branches are closed, it leaves a percentage of the local population in a situation where they have less opportunity to deal with money queries. The decision to shut building society and bank branches can adversely affect computer- illiterate and older people, especially in urban and rural areas, who may need to be supported by staff in person when visiting building society and bank branches.
Are there other concerns?
Consumers potentially being adversely affected by not being able to visit a branch is not the only problem caused when banks and building societies make the commercial decision to shut down operations at their branches. The disappearance of a nearby bank branch may lead to older demographics of people feeling left out of their communities, as such banks and building societies are central to their local areas.
Closing the doors on these branches can add more strain to squeezed services such as the Post Office, which is seen as the only alternative for customers when other face-to-face, and telephone or internet-based financial assistance are off limits for them . Finally shutting the doors of bank branches may negatively hit businesses operating nearby that rely on people visiting stores to access or deposit their money and related activities.
Is it just one bank or are there more?
In 2025, more financial institutions, such as NatWest and Lloyds, look increasingly likely to shut down numerous branches again, in the North West and the rest of the country.
The NatWest’s proposal is to cease trading at its branch in Walton Vale, Liverpool, is one of the branches potentially affected. This seems to be part of a wider plan to shut down branches which may negatively impact people living in local areas. The move towards reducing the number of branches customers can access seems to adversely impact banking customers and people living in the affected area, who worry about the survival of the high street and how it might hurt the local area.
The community is fighting back
Campaigner Alan Gibbons has been opposing the proposal to close the NatWest branch located in Walton Vale, in Liverpool. He claims such proposals may necessitate a trend where the people of local areas voice their opposition and stand up against the shutting down of bank and building society branches.
Protesters hope to encourage those decision-makers to go back and think again before shutting down bank and building society branches. There have also been concerns raised by other campaigners such as Karen Whitehurst, over the potential shutting down of the NatWest branch in Urmston, where residents are trying to convince decision- makers to keep the doors open as in their view ‘it is not just a building – it is part of our community fabric that keeps our local economy thriving.’. More broadly Ms Whitehurst points to banks playing a ‘critical role in the life of a community’.
Demonstrating how widespread the closures are, the North West town of Tatton, where petitioner Steve Greany highlighted that NatWest and Halifax bank branches are due to be shut down, has also raised concerns. Objectors to the scheme believe it will ‘have a significantly negative impact on members of the community, especially people from older demographics and vulnerable individuals who rely heavily on these services.’
What arguments do the campaigners use?
Ms Whitehurst, Mr Gibbons and Mr Greany are campaigning to keep their bank’s branch open because they have observed that ‘not all residents are computer literate’ and that banks are pivotal to community life. The petitioner believes that nobody should be forced to do their banking online. The campaigner gave the example of elderly people and said that, given the choice ‘this demographic would need assistance with their transactions and prefer to talk to another human being.’. The campaigner thinks ‘local bank branches’ are an asset because they ‘are a service to the community’.
Post office problems
Closing bank- and building society branches means more people will rely on their local Post Office acting on the bank’s behalf. But Post Office branches are also being closed, and the ones that are still open will be getting busier and busier, so this may not be a solution for everyone.
The Government is unlikely to interfere, as they don’t have a say in the internal decisions taken by a business. They even stated this when someone tried to set up a petition on GOV.UK in 2017.
Sign a petition or set one up to support your local branch Other people are trying to persuade the banks to stop the closures, like Mr Gibbons in Walton, who started a change.org petition. Signing this one, or other petitions, to protest branch closures is a good way of showing your support and telling the banks and building societies that you don’t agree with this cost-cutting exercise.
