Branches & agencies
Banks and building societies closed 6,161 branches between January 2015 and September 2024.* This means only 38% of the branches that were open 10 years ago remain open today.
Hand-in-hand with the loss of branches from the high street is the loss of 15,000 free-to-use ATMs during the five years to December 2023. The UK is predicted to have lost 75% of its free-to-use ATMs by 2027.
These are shocking statistics. For many people, their local branch is an important part of everyday life. They are a lifeline for people who are not comfortable with a purely digital service, particularly elderly customers and those in vulnerable circumstances. The personal, face-to-face service provided by high street branches is invaluable to the people who rely on it.
What’s more, it is not only consumers who are being impacted by the wholesale loss of branches and ATMs from the high street. Independent local retailers, so important to the uniqueness of each town’s high street, are suffering from reduced footfall due to bank closures. In addition, many are forced to impose a minimum of £5 on card purchases due to high charges, further marginalising customers who have limited access to cash and losing out to ‘big name’ retailers who can absorb the transaction fees.
It all amounts to a growing tragedy for Britain’s high streets, and the erosion of a way of life that has knitted communities together for hundreds of years.
The East Midlands has suffered more than most areas of the UK, currently having the second worst branch-to-people ratio of just 4.6 branches per 100,000 people.
The situation in the region’s smaller urban areas is especially troubling. As an example, 30 bank and building society branches within the catchment area of Hinckley & Rugby’s own branches have closed during the last ten years. In fact, in each of the towns where we have a branch or agency, Hinckley & Rugby is now one of only a few over-the-counter options for savers.
Chief Customer Officer Danny Cranie commented:
“Customer feedback tells us how much they value being able to speak with someone they know and trust, in person and in a welcoming environment. Through our face-to-face service, we really get to know our customers and what’s important to them. Our localised branch network is especially important for people who are isolated and perhaps unable to travel to the ‘big city’. We are here for all our customers. That’s so important in the tight-knit communities that our branches support.”
Further highlighting the benefits of face-to-face service, veteran broadcaster Moira Stuart has spoken of how she was recently saved from a scam only by the vigilance of a bank cashier. In fact, more than 1 in 8 adults** fell victim to a financial scam during the last 12 months. It is often the very people who rely most on branch services who are susceptible to being duped by fraudsters. Well-trained staff, who in small towns tend to have a years-long relationship with their customers, are key in protecting people from this scourge.
In addition to providing a personal level of support with financial services, banks and building societies have long been at the very heart of community life and wellbeing. Building societies in particular – since they are owned by their members, not shareholders – reinvest profits into the community.
For example, Hinckley & Rugby provides major annual support to local charities through its Community Foundation, and supports other local good causes on an ad-hoc basis through its Community Sponsorship Scheme and by volunteering time and resources.
Nadia Baker, Chief People Officer, added:
“Supporting local good causes is very important to us, and we are always looking at ways we can help. Every Hinckley & Rugby branch works closely with local charities and community groups, supporting not just with money but with time and expertise. Our branch staff do amazing work to benefit their communities, and I am very proud of them all.”
Amid the continued exodus of banks and building societies from the region’s high streets, Hinckley & Rugby has made a firm commitment to keep all its branches open.
CEO Barry Carter said:
“We understand the importance of maintaining a strong local presence. Although we are investing in and developing digital services, many of our members value having a branch they can rely on, and that matters to us. Our purpose today is the same as it has always been: we are here to support our members and communities, helping them to create a better financial future for themselves. We are 100% committed to our branch network, and to meeting the needs of all our members.”
To find a Hinckley & Rugby branch or agency local to you, visit our branch finder page.
*According to a Which? Report published 25 September 2024
**From a survey published in MoneyAge 15 October 2024
