British Consumers Show Indifference to Bank Branch Closures
A Shift in Banking Preferences
Recent research by CRIF, a consumer credit information provider, reveals a significant trend among British banking consumers: they are less concerned about bank branch closures compared to their counterparts in the US and Europe. The report indicates that only 23% of UK consumers consider the proximity of a bank branch important when choosing a banking provider. In contrast, 35% of Europeans and 38% of Americans still value having a nearby branch.
Age-Related Insights
Interestingly, this indifference spans all age groups but is particularly pronounced among younger consumers. Only 13% of those aged 18-34 view the availability of a local branch as important, a decline from 21% the previous year. Conversely, while 33% of consumers aged 55 and older regard nearby branches as significant, this figure still lags behind the US (53%) and Europe (41%).
Key Factors in Choosing a Bank
Instead of physical branches, British consumers prioritize other factors when selecting a bank. A notable 41% emphasize the importance of products and services tailored to their needs, while 35% prefer well-established brands. This shift underscores a broader transformation in retail banking priorities in the UK.
According to CRIF, these findings reflect the ongoing evolution in consumer expectations. The rise of digital banking options has already prompted many UK banks to reduce their physical presence. Since 2015, over 6,000 bank branches have closed across the UK, with an estimated 46 million adults now using some form of online banking.
Embracing Digital Banking
Sara Constantini, the regional director for the UK and Ireland at CRIF, states, “The UK is leading in financial services and communication technology in Europe. The closure of branches has accelerated the adoption of digital banking.” However, she also notes that this shift presents challenges for banks, which must adapt to meet increasing digital demands while maintaining high standards for tailored services. Balancing traditional services to support all clients remains essential.
Looking Ahead
The survey results may encourage UK banks that are planning further branch closures. For instance, Lloyds Banking Group has announced plans to close 292 branches in 2025. On the other hand, banks like HSBC have committed to keeping their branch networks intact until at least 2026. Nationwide has promised to maintain its current branch network until 2028, having commissioned its own research that revealed nearly three-quarters of 2,000 surveyed consumers are concerned about the rate of closures. Alarmingly, about half of respondents, including 50% of 16 to 24-year-olds, expressed frustration at finding branches closed when they needed them.