What are your banking options if your local branch shuts?

More than half of Britain’s bank and building society branches have disappeared from the high street in less than 20 years, the latest data shows.

According to Which?, some 5,600 branches have closed since January 2015, which equates to an average of 54 each month. The trend has accelerated at a “frightening pace” as customers increasingly shift to online and mobile banking, said the consumer group.

Charities and commentators warn that the closures have left some vulnerable people, such as the elderly, disabled and low-income groups, struggling to access cash and customer support. Labour’s Alex Davies-Jones, shadow minister for tech, gambling and the digital economy, told PoliticsHome that villages no longer had “any bank presence” – and that branch closures were impacting “everybody who is digitally excluded”.

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Why are bank branches closing?

Bank branches have plenty of benefits, said The Times Money Mentor, including “access to face-to-face guidance, financial advice and fraud protection” plus many small businesses are “reliant on cash and in-branch services”.

But almost three-quarters of adults now use online banking, according to banking trade body UK Finance. Many customers “don’t feel the need” to visit their local bank branch any more, said Rest Less, when they can manage their account through their smartphone or internet banking “from home”.

The bank branch network has been “slowly shrinking” for decades, said Sarah Coles for Yahoo Finance. Many closed temporarily during the pandemic, pushing people online so by the time they reopened there were fewer, and an increased reason to shutter permanently.

Banks justify the closures by claiming they are “responding to the needs of businesses and consumers who are choosing to do their banking online”, explained The Times Money Mentor, but critics argue that many customers have “little choice”.

The closures, which often mean the removal of ATMs, are “preventing access to cash”, said the Daily Express, and are “causing issues for those who want to bank in-person”.

How to check if your bank branch is closing

Under Financial Conduct Authority rules, banks must consider customers’ “everyday banking needs and the availability and provision of alternatives” when closing a branch. Banks are required to ensure any alternatives are ready before they close and give customers three months’ notice.

Visit your bank’s website to find details of branch locations and closures.

Consumer watchdog Which? also has a regularly updated tool that lets you select your bank and postcode to find out “which branches closed recently and which are about to be lost”.

What are the alternatives?

If your bank disappears from the high street, you could consider switching to another in your area, said Moneyfacts, and some will “incentivise new customers” with perks such as cashback, meaning it could pay to shop around.

The Post Office, which has 11,500 branches across the country, also provides counter services similar to a bank, including depositing and withdrawing money, checking your balance, and commercial activities such as savings, investments and mortgages.

You may be able to access bank hubs, said MoneySavingExpert, which are “shared spaces” on the high street where customers of different banks can deposit and withdraw cash and complete other face-to-face banking requirements. Each bank occupies the space on a rotating basis, added the financial website, and there are private spaces where you can speak to someone from your own provider about more complex issues. You will be able to find your nearest bank hub by using the Post Office website.

There is also the option of going digital with online banking or even app-only banks. It can be “a bit of a pain” remembering login details and passwords, said Andy Webb on Be Clever With Your Cash, but it is “actually great” once you get the hang of it.

Some banks, such as digital-only brands, even have apps and budgeting tools that are designed to work on your phone. Despite having no bank branch to visit, digital banks claim they offer a “far better user experience than older banks trying to adjust ancient IT systems”, said MoneyHelper.