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Let's Talk Business

2,400 BANKS AND BUILDING SOCIETIES COULD CLOSE THIS YEAR

Bank

In Surrey and Hampshire alone since 2017, 15 Banks and Building Societies have closed and have been set to close.

Expected closures put an estimated 12,000 Jobs at risk.

Expert calling on bank and building societies to review strategies to ensure they're relevant to the needs of brits.

Mobile branch banking services expected to be more widely used- Especially in rural communities. 

Bank closures since 2015

 

Top 10 local authorities for branch closures

       

Region

       Closures  

  City

            Closures

Scotland

368  

 Edinburgh

50

South East

361  

  Cornwall

46

North West

353  

 Glasgow

38

South West

327  

 Westminster

37

London

288  

 Birmingham

35

Yorkshire and Humber

252  

 Manchester

34

East

221  

 Sheffield

29

West Midlands

208  

 Leeds

27

Wales

200  

 Highland

25

East Midlands

165  

 Highland

25

North East

81  

 

 

Northern Ireland

44  

 

 

 

Research also shows report reveals 29% of people expect the rate of branch closures to increase ‘dramatically’ over the next three years, and 49% think there will be a slight increase.

“Those banks and building societies with branches need to urgently review their strategies to see if they can make them more relevant to the needs of customers and therefore more financially viable”

When it comes to what type of products and services people would be happy to use from branches, The Nottingham’s research reveals 53% would use branch-based savings accounts, followed by 32% who would use independent financial advice.   Just over one in five (22%) said that they would be happy to use a branch-based whole of market mortgage advice service and 9% would use a local estate agency service based in bank and building society branches.

 

The report also predicts the UK could see a growing use of ‘drive through’ banking where local branches are replaced with high-tech virtual banks with video tellers.  Customers could potentially open an account, request an overdraft, or even apply for a mortgage from their vehicle!  Drive-through banks already exist in France, Germany and the US where they are relatively commonplace.

Mobile branch banking services are also expected to be more widely used – especially in rural and semi-rural communities.

Both Mr. Black and The Nottingham are calling on banks and building societies to review their branch strategies to ensure that they are relevant to the needs of people today

Despite putting an estimated 12,000 jobs at risk, are these closures something we should be worried about or should we be looking at the future of banking and its possibilities? Join the discussion via Twitter:

 

David Black- Banking expert and David Marlow, CEO of Nottingham Building Society join Biz in the studio to discuss this:

 

Let's Talk Business:2,400 Banks And Building Societies Could Close This Year, Is It Really A Threat?

2,500 Banks and Building Societies could close this year, is this a real threat to the future? We spoke to Banking Expert, David Black, and CEO of Nottingham Building Society on this.