Bank Branch Closures Spark Concerns Among Customers

A notice on the door of the Lloyds Bank Staines location, with its windows covered, informs customers: “You can handle your everyday banking with our mobile banking app.” However, the situation today is quite different.

During a visit to Staines on Wednesday, the Guardian found that Lloyds Group was facing an IT issue, leaving many customers unable to make payments or transfer money. Encouragement to use the app isn’t much help to the likes of Patricia Payne. Living in Chertsey, she takes a nearly four-mile bus ride to reach Staines when she needs banking services. She openly admits that online banking is a struggle for her and wants to find a physical branch for help with withdrawals and transactions. “I find that difficult,” says Patricia. “My son showed me how to use the app, but it doesn’t really assist me.”

Her local high street has “all but disappeared” in terms of physical banks, turning parts of Surrey into banking deserts.

Staines was one of two Lloyds branches to shut down in the county this week; the other was in West Byfleet, marking the end of banking in that village. Another Lloyds branch in Red Hill closed its doors on May 28.

As Patricia notes, “There’s a post office, but you have to stand in line. Sainsbury’s has a cash machine.” She used to have the option of using Lloyds or its nearby counterpart, Halifax. “Now I have just one choice,” the 78-year-old states.

The Lloyds branch, one of around 150 expected to close by March 2027, shut down permanently on Monday. On a particularly rainy Wednesday morning, some customers, including pensioners and tradespeople, found themselves outside locked doors, holding essential documents.

This scenario has become all too common. Since 2015, roughly 7,000 bank branches have closed in the UK, with closure rates peaking in 2017. Recently, both Lloyds and Santander announced this year’s closures.

Banks argue they are trimming their branches as customer preferences shift towards online and mobile banking. A spokesperson for Lloyds Banking Group emphasized their commitment to offering more options for managing finances, in addition to their apps, thereby allowing customers to bank wherever and whenever they choose.

According to Consumer Champion Which?, approximately 6,795 branches have closed since January 2015—amounting to 69% of those that existed at the year’s start.

In response to the alarming trend, the government recently announced an independent review to “protect access to in-person banking,” which will seek to understand the impact of branch closures and identify affected populations.

The review coincided with a YouGov poll revealing that 76% of Britons value having physical bank branches nearby. This survey included 6,400 participants. Ron Delnevo, chair of the campaign committee for the Payment Choice Alliance, noted the disconnect between banks’ online shift and customers’ needs.

Rade Mari, who operates a fruit and vegetable stall in Staines, expressed concern over the bank closures, saying they pose a significant challenge for small and medium businesses like his shop. Customers like Lynn Ballmer, as she fills her shopping cart, shared similar worries about branch closures. “Many people don’t grasp it, and I sometimes don’t either,” said the 78-year-old, even as she works with online banking.

Unlike some areas in Surrey, Staines still boasts several banks and building societies, including Barclays, Santander, Halifax, and Nationwide. A poster on a Nationwide wall boldly states, “Staines, we’re here to stay.” However, Lynn mentioned that they switched to Nationwide because of their branch commitment but remains unsure of how long that promise will last. “Online banking can be a hassle; I really enjoy just speaking to someone,” she remarked.

Delnevo highlighted the urgent need for an investigation into branch closures, asserting it has been overdue by more than a decade. Still, he remains optimistic, suggesting that “banking hubs” could serve as solutions, where multiple lenders share a single location to replace closed branches.

These hubs would function similarly to standard branches, providing a service where post office staff assist customers from various banks in withdrawing and depositing cash, paying bills, and performing regular transactions. However, the rate of establishing these hubs is lagging behind the rate of bank branch closings, with Delnevo estimating that at least 1,200 hubs are necessary, while only 236 currently exist.