More branches to close as UK banks retreat from the high street

More branches to close as UK banks retreat from the high street

The decimation of the UK's branch banking network continues apace as Royal Bank of Scotland earmarks a further 154 branches for closure this year.

The 81% taxpayer-owned bank has not made a formal announcement of its plans but has written to customers of affected branches informing them of the move.

The bank shuttered 102 branches last year against a backdrop of a 30% reduction in branch visits as more customers performed routine transactions from their desktop and mobile devices.

Just last week Lloyds Banking Group confirmed 9000 job losses and the closure of 150 branches alongside plans to pump an additional £1 billion into digital channels over the next three years.

Other 'high street' giants Barclays and HSBC have also moved to scale back their physical presence, chopping 50 branches over the last 18 months and 12 months respectively.

Across the country, branch transactions are falling 10% a year, according to the British Bankers’ Association as customers migrate from the high street to online and mobile channels. The trend has seen analysts from Deutsche Bank forecast a 75% drop in the branch networks of the nation's six largest banks over the next decade.

Comments: (1)

Brett King
Brett King - Moven - New York 04 November, 2014, 15:58Be the first to give this comment the thumbs up 0 likes

The UK is handling this transition smartly and as needed. My concern is with the US market which is much more over-branched than the UK. I think it will come to a Borders/Blockbuster moment for more than a few banks in the US who haven't seen this coming and prepared adequately. 

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