Bank branch closures leave millions of young people angry and frustrated

Sweeping bank branch closures have sparked outrage among the nation's youth, according to fresh research.

A survey has uncovered that a staggering 50% of individuals aged between 16 and 24 are incensed by the permanent closure of high street banking services at a critical time when they require access.

This evidence highlights that the ongoing wave of bank closures impacts not only older customers but also younger generations, with a significant 70% appreciating the option of in-person banking services.

Since 2015, over 6,000 branches have been closed, and projections indicate that by year-end, 33 constituencies including two within the capital will be devoid of any bank branches.

Barclays appears to lead the pack in closures, having sealed off 1,216 branches, which accounts for a fifth of the total number. An additional 645 branches are slated for closure throughout this year, reports the Express.

Nationwide's retail director, Stephen Noakes, commented: "Our research shows nearly three quarters of consumers of all ages are concerned about the rate of closures, with half of 16-24s left frustrated after finding their local branch closed. Branches are valued for everyday banking but also for important moments like scam worries and transferring a large amount of money. That's why we have promised that everywhere we have a branch today we will remain until at least 2028."

The Swindon-headquartered building society's poll further reveals that nearly three quarters of people are worried about the swift disappearance of local branches, with half feeling aggrieved upon discovering a closed branch when they need it the most.

The study by Which? revealed that 70% of consumers still place a high value on having local bank branches, with 41% citing the essential support they provide to vulnerable individuals. Notably, even among younger demographics, there's an awareness of this importance; 20% of those aged 16-24 and 28% of those aged 25-34 recognise the significance of branches for such support, with the numbers increasing with age.

In a bold move against the prevailing trend, Nationwide has extended its commitment to keep its current branches open until at least 2028, adding two more years to its previous promise.

Mr Noakes commented: "What's clear from our research is people of all ages are frustrated and concerned about the rate of branch closures. Our customers tell us how much they rely on them. This is why we are proud to have Britain's biggest branded branch network, a manager in every branch and a commitment to stay everywhere until at least 2028."

While banks have been closing branches under the pretext that customer habits are shifting towards online banking, consumer advocacy group Which? has been monitoring the closure of major UK lenders' branches since 2015.

Barclays is at the forefront of these closures with 1,216 branches closed, but the NatWest Group, which includes Royal Bank of Scotland and Ulster Bank, tops the list with 1,360 closures the highest number for any banking group.

Lloyds Banking Group, encompassing Lloyds Bank, Halifax, and Bank of Scotland, has seen 1,146 of its branches closed.

Whilst the consumer watchdog, Which?, stated that bank branch closure rates seemed to have decelerated since the peak in 2017, the recent "troubling surge" suggests that banks are spiralling downwards in a competitive race to the bottom.

An additional 387 closures are expected for the rest of this year, and another 24 are slated for 2025.

By the close of this year, it is projected that 33 parliamentary constituencies - with a total population exceeding three million - will be devoid of even a single bank branch.

Since the onset of Covid in 2020, over 10,000 high street retail outlets across Britain have been shuttered, predominantly department stores, clothing retailers, and banks.

Sir John Timpson, 81, chairman and owner of the Timpson Group, which boasts over 2,000 outlets, commented: "One of the great advantages a high street can have over the next 30-years is the ability to provide people with face-to-face services. If you go to a lot of really good retailers you can still see people and a lot of the reason people will continue to go to high streets is for the social interaction, as well as the actual purchase of goods and services."

Sam Richardson, deputy editor of Which? Money, stated: "This milestone of more than 6,000 bank branch closures in just nine years underscores the seismic shift that has taken place in terms of our banking habits and the character of the British high street."

"While some may hardly notice the closure of their local branch as they seamlessly switch to online banking, for others reliant on face-to-face services, the impact can be disastrous."

"It's not about halting closures altogether, but ensuring essential banking services remain accessible to those who still rely on them. It is crucial the Government prioritises opening more hubs quickly, so that people aren't left behind."