Banks are still closing branches at an ‘alarming rate’

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Banks are still closing branches at an ‘alarming rate’ as figures show more than 1,500 have shut down since 2017 – despite new rules brought in to protect them

  • NatWest alone has shut more than 650 bank branches in the past three years
  • Banks are required to consider impact of closing branches on local residents
  • Investigation by Which? shows that branches are closing at an ‘alarming rate’

By Amelia Murray Money Mail Chief Reporter For The Daily Mail

Published: | Updated:

Banks have continued to close branches at an ‘alarming rate’ despite new rules introduced to protect them.

HSBC, Lloyds, Santander, the Co-Op Bank, TSB and Virgin Money have together closed more than 600 branches since protective measures were launched in 2017, according to consumer group Which?

And NatWest and Barclays have shut 651 and 386 branches respectively in the past three years, the investigation found. 

A closed Lloyds branch is seen above in Plymouth, Devon last year. Banks have continued to close branches at an ‘alarming rate’ despite new rules introduced to protect them

Under the rules – called the Access to Banking Standard – banks are required to consider what impact any closures would have on residents and publish their findings.

They must also give customers at least 12 weeks’ notice before shutting down and clearly signpost alternative services, such as a nearby Post Office. 

Yet despite leaving many areas without a single branch, not one of the banks has reversed a closure in three years, Which? said.

UK Finance, which represents the banking sector, said: ‘We are working closely with the Financial Conduct Authority on its draft Branch and ATM Closure guidance, building on the recent collaborative work that has seen nine in ten branches remaining open during lockdown.’

Under the rules – called the Access to Banking Standard – banks are required to consider what impact any closures would have on residents and publish their findings [File photo]

Under the rules – called the Access to Banking Standard – banks are required to consider what impact any closures would have on residents and publish their findings [File photo]