The number of bank, credit union and building society branches in the UK has fallen by more than a third over the last five years.
Office of National Statistics (ONS) figures show branch numbers fell from 10,410 in 2019 to 6,870 in 2024, a 34% decline. Lloyds, NatWest, Halifax and Bank of Scotland have already lined up another 113 closures by the end of November.
The shrinking networks come as Brits increasingly bank through digital channels. Announcing a round of closures in June, NatWest said that 80% of current account holders use digital services and the majority of new accounts are opened online.
The UK is closing a higher percentage of branches than almost all European countries, with only Spain (37%) and the Netherlands (48%) outstripping British lenders, according to management consultancy Kearney.
Sameer Pethe, a Kearney partner, tells the Financial Times: “This isn’t simply about doors closing or cost cutting. It’s a clear signal that high street banks are reshaping their operating models, doubling down on digital as online becomes second nature for most customers.”
Despite the popularity of online and digital banking, the closure of branches has raised concerns about access to services, prompting action last year from the Financial Conduct Authority.
The watchdog introduced rules ensuring that banks and building societies need to weigh up if local communities lack access to cash services, like branches and ATMs, and plug significant gaps.
In response, banks agreed to set up 350 banking hubs, run by the Post Office, where customers can carry out cash transactions.