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HSBC to close down 69 UK branches in a shift towards online banking

HSBC to close down 69 UK branches in a shift towards online banking
HSBC to close down 69 UK branches in a shift towards online banking

British banking giant, HSBC Holdings plc, has reportedly announced the closure of 69 branches in the UK, including two branches in Scotland, in a shift towards digital transformation, starting from July.

It is expected that the jobs of around 400 employees will be affected as a result of this move.

The banking firm said that the decision is part of its ‘transformation’ in how it operates branches within communities, pledging to offer more services to customers outside traditional banking.

Jenny Ross, Editor at Which? Money, notes that the number of bank branches closing down has increased at an alarming rate in recent years, causing concerns among consumers who rely on banks not only to access cash but also for face-to-face services.

Ross stated that although many prefer digital banking, millions of other customers are either not ready or unable to do so, adding that the proposals by the banking industry to ensure the protection of access to cash should keep such customers in mind, which needs to be held up by legislation as well.

Ross said that the government must work, swiftly and urgently, upon the promised legislation to ensure that customers can continue accessing cash for as long as needed.

Under HSBC’s plans, local areas affected by the closure will see new integrated self-service machines as well as enhanced digital support for customers assisted by staff. The group will also continue using the Post office network for wider operations.

The changes are said to be part of the bank’s efforts to further invest in mobile and digital services, seeing the average footfall of customers actively using its branch network falling to half since 2017.

HSBC also added that it will not close any of its branches in towns where it is the last bank and will retain a network of over 440 branches.

However, the average distance for customers to travel for in-person services will increase to around 4 miles.

HSBC’s decision follows banking giant, Barclays, closing 65 of its branches in the country over the last year, and that of Lloyds Banking Group, which will be closing 48 more branches, including 7 in Halifax.

Source credit: https://www.heraldscotland.com/news/homenews/19994334.hsbc-culls-scottish-bank-branches-69-go-across-uk/

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Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.