Recent research indicates that British consumers are less concerned about the closure of bank branches compared to those in the US and Europe.
A study commissioned by consumer credit data provider CRIF reveals that only 23% of UK citizens consider the proximity of a bank branch when selecting a banking provider. This figure contrasts with 35% in Europe and 38% in the US, underscoring a significant difference in attitudes toward physical banking locations.
The trend of indifference towards branch accessibility spans all age demographics but is notably rising among younger adults aged 18-34. Only 13% of this group find a nearby branch important, down from 21% the previous year. Conversely, 33% of those aged 55 and older still value the presence of a nearby branch, although this is still lower than their counterparts in the US (53%) and Europe (41%).
Rather than branch access, UK banking customers prioritize relevant products and services when selecting a bank (41%), followed closely by the reputation of the brand (35%). According to CRIF, these findings reflect a shift in consumer priorities in the UK’s retail banking sector. The ongoing trend highlights how many banks are transitioning towards reducing physical locations in favor of digital and remote banking solutions.
Since 2015, over 6,000 bank branches have been shut down, with approximately 46 million adults in the UK utilizing some form of online banking. Sara Constantini, regional director for the UK and Ireland at CRIF, notes, “The UK stands at the forefront of financial services and communication technology within Europe. The continuous closures of branches have accelerated the adoption of digital banking.” However, she cautions that this shift poses challenges for banks and financial institutions, which must adapt to rising digital demands while still providing traditional services to accommodate all customers.
The findings are likely to be encouraging for UK banks planning further branch closures in the near future. Lloyds Banking Group has already announced plans to close 292 branches by 2025, while other banks like HSBC intend to maintain their branch networks until at least 2026. Nationwide has committed to preserving its current branches until 2028; they conducted their own survey earlier this year, revealing that nearly 75% of 2,000 respondents expressed concern over branch closures, with about half admitting frustration when encountering a closed branch, including 50% of young adults aged 16 to 24.