HSBC promises no more bank branch closures until 2026
HSBC is planning to spend more than £50 million this year on updating and improving its branch network
PA
HSBC has promised it will not announce any new closures of its bank branches until at least 2026.
With hundreds of banks closing branches each year, HSBC is committed to extending their face-to-face banking to support elderly or vulnerable customers who may feel disadvantaged because they do not have access to internet banking.
The pledge means the bank must keep its 327 branches running for the next year-and-a-half, and possibly longer.
It previously committed to announcing no new closures in 2024.
The pledge comes as banks review their branch closure programmes amid claims that up to five million elderly or vulnerable customers who prefer face-to-face service are disadvantaged as they don't trust online services.
The vast amount of store closures has also raised concerns about access to cash, especially for poorer customers and those living in rural areas.
HSBC has promised it will not announce any new closures of its bank branches until at least 2026
GETTYThousands of bank branches across the UK have been shut in recent years, leaving many towns without any local services.
Nearly three million people will live in a parliamentary constituency without a physical bank branch by the end of this year, according to the consumer group Which?.
They stated that in May, more than 6,000 branches had closed since 2015, with Lloyds, NatWest, and Barclays among those drastically slimming down their nationwide network. HSBC closed more than 700 in that time.
Having axed 114 branches in 2023, HSBC called a halt to any more closures this year.
Christopher Dean, HSBC’s head of UK customer channels, said: “We know that our 327 branches play an important role in serving our customers, which is why we are investing more than £50 million in refurbishing and remodelling works across our network this year.”
Major banks say there are far fewer customers who are using in-person services, with more people preferring to use mobile and online banking.
HSBC admitted that the number of regular customers visiting branches has dropped by an average of 65 per cent over the last five years.
However, it revealed that five million customers have visited one so far this year, especially for more complex banking inquiries.
The UK’s financial regulator is set to introduce new rules, coming into effect next month, requiring banks and building societies shutting branches to do more to make sure people can still access cash.
This includes setting up alternative services like banking hubs, ATMs and Post Office facilities.
In a bid to keep physical branches on the High Street, Labour has promised to open 350 banking hubs in the next five years.
There are currently 68 of these hubs, which provide individuals and businesses with everyday banking services such as paying bills and depositing cash and cheques.
Banking hubs allow staff from several banks to share the same space.
They have a counter service operated by the Post Office for some services like withdrawing and depositing cash and paying in cheques.
Labour plans to review the qualifying criteria for banking hubs 'to ensure fair treatment for bankless towns and underserved communities'.
HSBC said it was going to offer services in 100 shared banking hubs by the end of the year, from its current 41. It has also hosted community pop-ups with some banking services in local places like town halls, hospitals, garden centres, libraries and some WHSmith shops.