In a significant shift towards digital banking, around 250 bank branches are slated to close across the UK in 2024, marking a continued trend that affects various communities, especially in rural areas. Among these, Kent sees the shuttering of eight branches, including in locales such as Strood and Dartford, highlighting the broader pattern of closures that have been ongoing since February 2022. This move towards online platforms leaves a gap in physical banking services, raising concerns about digital exclusion among older populations.
Banking on Change: The Shift to Digital
As the UK banking industry leans more into digital services, an average of 55 bank closures have been announced each month since early 2022. This transition, while reflecting growing online banking and shopping trends, overlooks a significant portion of the population that still relies on cash transactions. Data reveals that over 70% of people used cash in the past two weeks, underscoring the need for continued access to physical banking services. The closures are particularly impactful in rural and semi-rural areas, where digital exclusion poses a real threat to older residents’ financial independence and access.
Response and Remediation: LINK and Age UK
In response to the widespread closures, initiatives like LINK, supported by major banking groups, aim to assess the impact of each closure. This ensures that vulnerable customers and small businesses can retain access to essential banking services. LINK has recommended the establishment of 106 new banking hubs to mitigate the closure impact. Furthermore, Age UK has called for a pause on branch closures until more shared banking hubs are operational, highlighting the critical need to support those not engaged with online banking services.
The Future of Banking Access
Despite the urgent shift to digital platforms, the demand for physical banking access remains a critical issue. The efforts by LINK and the calls from Age UK represent a significant acknowledgment of the challenges faced by communities losing their bank branches. As the landscape of banking continues to evolve, the development of shared banking hubs may offer a sustainable model to bridge the gap between digital convenience and the necessity of in-person services. The ongoing dialogue between banking institutions and community advocates will be crucial in shaping an inclusive banking future that accommodates the needs of all customers.
