HSBC closes 27% of UK branch network in two years

HSBC has closed more than one in four UK branches in the past two years, according to new research.

Data compiled by consumer organisation Which? found that the bank has shut down 321 branches, or 27% of its network, since January 2015.

HSBC defended its closure strategy by pointing out that most customers now use online banking, but Which? said that although 56% of adults used online banking in 2015, there are still 20m Brits or either don’t or can’t use it.

Those most affected by the closures, according to Which?, live in predominantly rural areas often plagued by unreliable internet connectivity, including parts of Scotland, Wales and South West England.

HSBC confirmed it will continue to review its branch portfolio to ensure it has a sustainable network for the future. However, it said far fewer people are visiting its branches.

According to the BBC, a spokesperson for the bank said: “Overall footfall in our branches has fallen by over 40%, with 93% of contact with the bank now completed by telephone, internet or smartphone, plus 97% of cash withdrawals are made via an ATM.

“When we do make the decision to close a branch, our main priority is to ensure that our customers and their banking needs are catered for in the best way possible.”

The British Bankers Association trade group is currently updating its guidelines for branch closures in a bid to make sure staff in affected banks are properly trained, and that people are warned long in advance when their local branch is set to close.

But banks could still do more to help the customers most affected, Which? said.

The organisation’s chief executive, Peter Vicary-Smith, commented: “Banks can and must do a better job of working with their customers to understand their needs and those of the local community, especially when they are making changes to the services they offer or closing branches.”

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