Three leading banks could close 400 high street branches this year, says report

Three leading banks could close 400 high street branches this year, says report

Thousands of customers at Britain’s biggest banks face misery this year under plans to close up to 400 high street branches.

Three leading banks could close 400 high street branches this year, says report

HSBC, Barclays, Royal Bank of Scotland and sister bank NatWest may close the branches to slash costs and encourage online banking, according to a report.

It is thought HSBC may shut up to 200 of its 900-plus branches across the UK, but it declined to give figures.

That is about a third more than it closed last year.

A spokesman said: “We continually review our branch network to make sure branches are in the right locations.

“Over the past five years, we have seen an overall reduction of footfall at our branches of more than 40%.”

RBS and Barclays were both said to be planning to cut up to 100 branches apiece.

RBS did not rule out cuts but said the 100 figure was based on speculation.

A spokesman said: “Whenever we close a branch, we don’t comment on individual circumstances but we aim to redeploy staff and to minimise compulsory redundancies.”

Barclays has closed about 100 branches a year but said this year’s figure was likely to be significantly lower.

The number of branches run by major UK banks has halved in the last 20 years.

Following political pressure, a new rule was set last year that requires banks to assess the impact on local communities of a branch closure.

Critics say local branches provide a vital service and that closures hit elderly and low income customers without the internet hardest.

Derek French, director of the Campaign for Community Banking, said the bank closures will ”accelerate the death of the British high street.”

“This will particularly have a knock on impact on local businesses and the elderly,” he said.

Each bank said they had put in place measures to mitigate customer concerns, with HSBC forming a partnership with the Post Office and Barclays linking up with supermarket chain Asda to continue offering services.

About 70% of Britons still say it is important to have a bank branch close to where they live, according to a survey of 2,010 people by research firm ComRes.

Source:http://www.mirror.co.uk/news/business/three-leading-banks-could-close-7703812