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Government launches review into bank branch closures and digital shift

The government has initiated a review into banking services following 214 bank branch closures this year, with a further 100 expected by December.

  • 214 bank branches have closed this year, with 100 more set to close by December.
  • Since January 2015, 6,872 bank and building society branches have closed, representing 69% of the physical network.
  • The Treasury's review will gather evidence on challenges faced by those needing in-person banking services.

The government has launched a review of banking services amid concerns that the shift towards digital banking and reshaped branch networks are impacting those who rely on face-to-face services. This year alone, 214 bank branches have closed, with an additional 100 expected to close by the end of December.

The Treasury has issued a call for evidence to understand the challenges faced by individuals requiring in-person banking. The review aims to assess the impact of service changes, identify affected groups, and determine necessary steps to protect essential services, with a particular focus on vulnerable consumers and those with specific access needs.

Consumer group Which? reports that 6,872 bank and building society branches have closed since January 2015, accounting for 69% of the nation's physical banking network. A Which? survey last year indicated that 40% of its members had lost access to their local bank branch in the past five years.

The final report from the government's review, which is anticipated to include new recommendations, is scheduled for publication in October.

Why this matters: The review aims to address the impact of widespread bank branch closures on consumers, particularly vulnerable individuals, and could lead to new recommendations for protecting essential banking services.

What this means for you: If you rely on in-person banking services, the government's review could lead to changes in how these services are provided and protected.

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