High street hit hard as bank closures continue to surge
Communities across the UK are facing a severe blow as the closure of banking branches escalates, leaving many without vital financial services. With 250 branches slated for closure this year, including major players like Barclays and HSBC, the landscape of traditional banking is rapidly shifting.
In January alone, twelve major bank branches shuttered their doors, and by the end of this month, another 38 will follow suit. These closures are part of a larger trend, with a staggering 245 banks set to close in 2024, alongside an additional six branches awaiting closure dates. Furthermore, 15 more closures have already been announced for 2025.
Embed from Getty ImagesOf grave concern is the impact on communities, with 89 of the impending closures leaving areas devoid of any alternative banking options. The closures not only disrupt access to essential financial services but also exacerbate issues of digital exclusion, particularly among older individuals who may not have embraced online banking.
To address the fallout from these closures, initiatives like the LINK program have been established to evaluate the impact and provide alternatives such as banking hubs and free ATMs. However, the scale of closures continues to outpace these efforts, raising questions about the accessibility and inclusivity of the banking system.
Caroline Abrahams, director of Age UK, has called for a halt to branch closures until adequate alternative services are established, emphasizing the risk of excluding older individuals from essential financial resources. Similarly, Chris Ashton from LINK highlights the ongoing need for physical banking services, as evidenced by the significant portion of the population still reliant on cash transactions.
As banks forge ahead with closures, the resilience of communities and the future of traditional banking are at stake. Balancing the demand for digital innovation with the need for accessible financial services remains a pressing challenge as the high street undergoes a profound transformation.
