UK Banks Pause Branch Closures and Invest in High Street Presence
Since 2015, over 6,000 UK bank branches have closed as lenders sought to cut costs and encourage customers to move online. However, this trend is reversing as banks pause closures and open new branches, signaling a mini renaissance for bricks-and-mortar banking on the British high street.
HSBC UK has committed to keeping its remaining 327 branches open until at least 2027, while Barclays has extended opening hours at approximately 87 of its roughly 200 branches. Metro Bank recently opened three new branches in Gateshead, Chester, and Salford. Newcastle Building Society has also invested millions to open a new branch in a Grade II listed building in Newcastle city centre.
Nationwide aims to retain 696 branches until at least 2030, including the Virgin Money Northampton branch following its £2.9bn takeover of Virgin Money in 2024. This physical presence remains important for customers like Jatish and Sudha Shah, a couple in their 70s relying on the Northampton Virgin Money branch for in-person assistance, with closure potentially forcing them to change banks.
Branch usage patterns show younger customers aged 18–24 visited branches more frequently than those over 65, making up about 72% of branch visits last year. Conversely, around 20% of UK customers had not visited a branch in two years. Additionally, KPMG found that 72% of UK individuals have never visited a banking hub, highlighting ongoing discussions about the role and effectiveness of such hubs.
