A recent report confirmed that high street banking giant HSBC will close its Winton branch on Wimborne Road this August. 82 HSBC branches have been selected for closure this year. From 23 April approximately three branches will close every week until the beginning of October.
Current market conditions accelerated by pandemic
The decline of the high street banking branch was an existing trend accelerated by the pandemic. Jackie Uhi is HBSC UK’s head of network. Ms Uhi commented: “Making sure we have a sustainable branch network is essential to us, and decisions to close branches are not taken lightly. By ensuring we have the most suitable branch format in each specific local market that we serve, we will ensure that we are in good shape to meet the challenges ahead.”
For example, 81 of the 82 HSBC site locations have a post office located less than a mile away. 65% of the branches set to close are situated within five miles of another HSBC site. Analytics confirm that in-person banking has declined by one third since 2015. HSBC believes that its customers prefer a blend of branches offering full banking services, branches offering cash only, branches with automated services only and “pop up” branches.
Strategic high street closures foreshadow digital future
HSBC is not the only high street bank to roll out strategic closures. Barclays also announced two branch closures, located at Winton and Boscombe.
Both banks confirm that all staff working at affected branches will be redeployed, with their new roles located within 15 miles of their homes. The redeployment of existing staff is good news for Bournemouth’s bank employees and an indicator that demand for virtual customer support is booming across all banking networks.
HSBC reports that 9 out of every 10 customers contact the bank remotely (phone and online). Ms Uhi indicated that HSBC staff connect with over 100,000 social media customers every week.
Digital banks flourish across the UK
Indeed, HSBC’s overarching ambition is to become the UK’s go-to digital bank. Over 80% of adults across the UK choose online banking solutions. So far 14 million people across the country have digital-only bank accounts.
Recent statistics examining digital banking trends have shown that digital banks have the edge. During the third quarter of last year, digital banks celebrated net customer gains. The high street giants (HSBC, NatWest, Barclays and Santander) all recorded losses.
Ms Uhi commented: “The Covid19 pandemic has emphasised the need for the changes that we are making. It hasn’t pushed us in a different direction but reinforces the things that we were focusing on before and has crystallised our thinking. This is a strategic direction that we need to take to have a branch network fit for the future.”
The impact of Covid on Bournemouth’s banks has been mirrored up and down the country, but it is clear that this is also accelerating a wider trend of local bank closures as we move to a more online way of banking. Whilst the news from Winton’s HSBC, standing as it has for many years on the corner of Withermoor and Wimborne Road is sad, there is also a silver lining as we see a major UK bank repurposing staff instead of letting them go.
