British Consumers Show Less Concern Over Bank Branch Closures
Research Findings
Recent research from consumer credit information provider CRIF reveals that British consumers are increasingly indifferent to bank branch closures compared to their counterparts in the US and Europe. The study found that only 23% of UK consumers consider the presence of a nearby branch important when selecting a banking provider. This figure starkly contrasts with 35% in Europe and 38% in the US who still value a nearby branch.
Changing Attitudes Across Age Groups
Interestingly, this trend spans all age demographics. However, it’s particularly pronounced among younger consumers aged 18-34, where only 13% prioritize nearby branches—down from 21% just a year ago. In contrast, 33% of those aged 55 and above still find a nearby branch significant, although this percentage lags behind the US (53%) and Europe (41%).
Priorities in Banking Choices
The shift in priorities is evident. British consumers now emphasize the relevance of banking products and services to their needs, with 41% citing this as their main consideration when choosing a bank. Additionally, 35% prefer a well-established brand. This evolution illustrates a significant change in how consumers approach retail banking.
According to CRIF, these findings reflect “shifting priorities” in the UK banking sector. Many banks are already pivoting away from physical branches toward remote and digital banking solutions. Since 2015, over 6,000 bank branches have closed in the UK, with an estimated 46 million adults now engaging in online banking.
The Digital Banking Revolution
Sara Constantini, regional director for the UK and Ireland at CRIF, comments on this transformation: “The UK leads in financial services and communication technology in Europe. The ongoing branch closures have accelerated the shift towards digital banking.” However, she also points out the challenges that banks face in adapting to meet the rising digital demands while ensuring they provide tailored services to a diverse clientele.
Future of Bank Branches
These survey results will likely bolster the plans of UK banks aiming to close even more branches in the coming years. For instance, Lloyds Banking Group has announced the closure of 292 branches in 2025. On the other hand, banks like HSBC and Nationwide have committed to maintaining their branch networks at least until 2026 and 2028, respectively. Notably, Nationwide’s recent research indicated that nearly three-quarters of 2,000 surveyed consumers expressed concern over the pace of branch closures, with half feeling frustrated when they encounter a closed branch, particularly among the 16 to 24 age group.
In conclusion, the evolving landscape of banking in the UK signifies a move towards digital solutions, leaving traditional branch banking to adapt to modern consumer expectations.