Much of todays banking news is dominated by the near endless growth stories of Neobanks. As impressive as these are, it was the potential return of something far more traditional that recently caught my eye. 

The rapid disappearance of high street branches

Once upon a time bank branches dominated high street's and prime locations across the UK. But as more users adopted online banking the physical branch became an easy target of cost cutting intiatives rolled out by all the major retail banks, a move that has angered many customers who still prefer to do their banking in person. 

The swiftness with which the banks tackled this task was frightening.

Between 2012 and 2022, the total number of bank and building society branches in the UK fell by 40%.

Since January 2015 UK banks and building societies have closed 6,214 branches. This year alone Lloyds shuttered 71 branches and others intend to make similar culls. Rationalising their branch closure strategy a spokesperson for Lloyds Banking Group said more than 21 million customers now rely on mobile and online banking, meaning fewer people are making use of physical branches.

The Royal Bank of Scotland have wielded the axe with similar intent. I  worked for RBS in the late 1990s, initially as part of a roaming customer service team supporting various London branches, before being permanently seconded to 28 Cavendish Square. Being a large branch just behind London's top shopping street, Oxford Circus, meant we were often very busy, particularly at Christmas time. Yet, if you visit 28 Cavendish Square today expecting to find a bank you will be sadly disappointed. That branch, along with some of the others I worked at, have been consigned to the annals of history. On their website RBS state that  

But perhaps the most aggressive in terms of branch closures up to now has been Barclays. More than 800 Barclays branches have been axed since 2018 leaving only 206 in operation across the UK. 

Of course Barclays arent the only thinking along these lines.

A more balanced approach

In some countries the approach of banks to serving both digital and physically present customers has been more balanced.

CHANGE IN DIRECTION

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