Millions will have to upgrade smart phones or risk being locked out of bank accounts

HOUSEHOLDS are being forced to upgrade to expensive smartphones to access their bank accounts as customers are increasingly being pushed towards app-based banking.

Banks are encouraging customers to bank online or via their apps as they shut swathes of branches across the UK to cut costs.

But an investigation by The Sun has found that a number of high street lenders require their customers to have at least an iPhone 6S – released less than a decade ago – or above just to get access to their money.

And updates to these apps mean customers may soon require an even newer model of the expensive smartphones, experts say.

Millions of people in the UK have Apple iPhones, but these undergo software updates every year which apps need to be compatible with – eventually making older models obsolete.

“One of the forgotten consequences of the rush to move our banking online is the tyranny of the software update,” Martyn James, consumer expert, told The Sun.

“Many of us hold on to our older Apple phones because we don’t want to fork out upwards of £1,000 for a new model.

“Yet, this means we can’t download the latest software updates, which means we can’t gain access to our basic banking facilities.”

Experts warn this is particularly affecting older customers who don’t have the money or desire to buy new smartphones.

It comes as more than 6,000 bank branches have closed over the past decade, forcing customers to switch to online or app-based banking.

Just last month, Lloyds Banking Group said it would close up to 60 branches because it said customers were choosing to bank online.

It is closing 28 Lloyds Bank branches while 17 Halifax locations will shutter and 15 Bank of Scotland branches. You can read the full list of closures here.

The lender said 19million customers now use its banking apps.

Natwest Group plans to close a total of 98 stores this year, including 20 Royal Bank of Scotland sites and 10 Ulster Bank locations.

Meanwhile, Santander has rid itself of over 470 locations over the last nine years.

What iPhones do banks currently require?

The Sun has found a number of leading banks require users to have relatively new smartphones to manage their money online.

Santander asks consumers to have at least an iPhone SE to use its online banking app.

This smart phone came out less than a decade ago, in 2016.

Elsewhere, Lloyds, HSBC and Nationwide require customers to have a device which supports IOS 14.

This means customers need to own at least an iPhone 6, which came out in 2014.

Barclays requires customers to have a device which supports IOS 15 and above, which also requires users to have an iPhone 6S or above, which was released in late 2015.

A Barclays spokesperson said: “We are constantly evaluating and enhancing our mobile banking app experience.

“As part of this process, and to ensure our customers have the most up-to-date security and features, users have to be running Android 8.0 and above or iOS 15 and above to access our banking app.”

“Customers using older operating systems are still able to access full services via online banking.”

A spokesperson for Nationwide added: “We know people want choice in how they bank, that is why we updated our banking app and we are investing in our branch network, everywhere we have a branch we will remain there until at least the start of 2028.”

While Apple no longer produces older iPhone models, you can still buy them second-hand from some online shops or on platforms like eBay – which many people do to save money.

Santander, NatWest, Lloyds and HSBC did not respond to requests for further comment.

How do software updates work?

When Apple releases a new phone, customers who purchased the model will get access to new software updates for just five years after it was made.

After those five years pass, the phone will no longer get the latest security updates and features.

Over time, as apps are updated to be compatible with the latest updates, they may stop offering “backwards compatibility” to older models.

To buy a new iPhone outright it can cost over £1,000, and if you choose to get a monthly contract, this can cost up upwards of £900 a year.

The push to move vital services such as banks primarily online has left customers at the mercy of technology and software updates.

Alastair Douglas, chief of TotallyMoney said it is therefore “only right” that banks invest in providing an improved service for customers.

“In less than a decade, more than 6,000 banks up and down the country have closed, leaving 33 constituencies without a branch,” he told The Sun.

“While this will be part-driven by changes to how people manage their money, going digital will also benefit the banks’ bottom lines.”

He added: “So, it’s only right that they invest in providing an improved service, with support available when people need it. Especially as fraud becomes increasingly convincing and sophisticated.”

“However, new data from the Financial Ombudsman Service found that last year, complaints about banking and payments rose by 30%, reaching a fresh 10-year high.

‘Neither the money nor the desire to keep upgrading phones’

Caroline Abrahams, charity director at Age UK, told The Sun, the issue of app-based banking is a particular problem for elderly users.

“Many people of all ages, but especially among our older population, have neither the money nor the desire to keep upgrading their mobile devices, and are quite happy with the kit they’ve already got,” she said.

“However, this is a problem because it seems it may put them at risk of being unable to use online banking if they can’t update their phones to the latest operating software.”

She added: “Some older people are technical whizzes and thoroughly at home in an increasingly digital world, but many are not and are seriously troubled by the sharp decline in face-to-face banking.”

Ms Abrahams said her charity would like to see more shared banking hubs created on UK high street to address the issue.

Ms Abrahams said: “It’s completely unacceptable for hundreds of thousands of older people to be worried about losing their financial independence because they are not tech savvy, and it high time their interests were properly taken into account.”

Banking hubs, which were created in response to rapid branch closures, offer traditional shared services in new locations across the UK.

They consist of a counter service operated by Post Office employees, where customers of any bank can withdraw and deposit cash, make bill payments and carry out regular banking transactions.

There are also private spaces where customers can speak to community bankers from their own banks, who will be available on a rotating basis.

Currently, there are just 60 locations in relation to the 450 banks that have closed down.

Cash Access UK, the business rolling out these hubs, has plans to open 14 new sites over the next 12 months.

But this is still a much slower pace against the 54 bank closures which happen on average across the UK each month.

What to do if your local bank branch closes

If a recent bank or building society closure has left you without one nearby, you may have some alternatives.

You can carry out most basic banking tasks at your nearest Post Office, although you won’t be able to apply for a loan or open a new bank account there.

You can find your nearest Post Office branch by using the locator tool on its website.

Meanwhile, many banks offer a mobile banking service – where they bring a bus to your area offering services you can usually get at a physical branch.

Other banks use buildings such as village halls or libraries to offer mobile banking services.

It’s worth contacting your bank to see what services they have available, and when they might next be in your area.

Last month it was announced that new super ATMs would launch in 17 UK locations where branch closures have left residents unable to access essential banking services.

The ATMs will allow customers to withdraw funds, access their balance, change PIN numbers and deposit cash.

Bank of Scotland, Barclays, Halifax, Lloyds, NatWest, Royal Bank of Scotland and Ulster Bank are already signed up to allow deposits, at the super ATMs, with more banks set to sign up soon.

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