Nearly 200 bank branches to disappear in 2024
The closure of over 600 bank branches across the UK in 2023 marks a significant and perhaps unsettling trend for traditional banking. However, amidst this changing landscape, the opportunity to benefit from utilising a local broker becomes even more apparent.
Lloyds Banking Group recently confirmed the closure of 45 branches between March and November 2024, consisting of 19 Lloyds Bank, 22 Halifax, and four Bank of Scotland branches. This decision is driven by a notable shift in customer behaviour, with over four in five customers now regularly opting for online banking. The branch visits in these locations have witnessed a substantial decline, averaging 53 percent over the past five years and reaching up to 71 percent.
Acknowledging this transformation, Lloyds emphasized that they now offer a diverse range of options for everyday banking needs, including mobile apps, online platforms, and telephone services. Notably, customers can also turn to local alternatives such as the Post Office, banking hubs, or community bankers. Moreover, the assurance that colleagues affected by branch closures will be offered alternative roles within the business reinforces their commitment to employee welfare.
Barclays is following a similar trajectory, with plans to close 18 high street locations in March 2024. This decision is also attributed to the increasing prevalence of digital banking and decreased footfall in physical branches. However, Barclays is actively adapting to these changes by maintaining an in-person presence through the Barclays Local network. This network spans over 300 locations, including libraries, town halls, mobile vans, and banking pods. Additionally, Barclays is reinforcing access to cash through innovative services such as cashback without purchase, 24-hour deposit-taking ATMs, and collaborations with the Post Office and Cash Access UK.
In light of the broader trend of branch closures in 2023, the focus shifts towards the advantage of opting for a local broker. Local brokers not only provide a personalised touch but also many will still offer a face-to-face interaction that is becoming increasingly rare in the digital age. This alternative ensures that clients receive tailored financial advice and services while fostering a sense of community connection.
As traditional bank branches dwindle, the reliance on local brokers emerges as a compelling solution for individuals seeking a more personal and community-oriented experience. The shift towards digital banking may be inevitable, but the value of local expertise and personalised service remains unparalleled in navigating the financial landscape.
Here at J Finance, we offer telephone, video and face to face appointments, both locally and with advisers based in different areas of the country, nationally.