Halifax will shut five of its high street branches this week as part of a wider wave of bank closures across the UK. It comes as banks continue to reduce their physical presence in towns and cities due to changing customer habits and a rise in digital banking.
According to consumer group Which?, more than 6,000 bank and building society branches have closed since 2015. That number is expected to rise further as more people manage their money online.
Halifax, which is part of Lloyds Banking Group, will close branches in Carmarthen and Hayes on October 6, followed by Southport on October 7, Kingswood on October 8, and Folkestone on October 9.
More Halifax closures are scheduled for later this month, including in Crewe, Hove, and Eltham.
A spokesperson fro Lloyds Banking Group, which Halifax is apart of, said: “The way people are banking has changed, with over 21 million customers choosing our apps to manage their money.
“We’re providing more choice than ever before, bringing together the best in digital convenience with our people.
“Alongside our app, our customers can use any Lloyds, Halifax or Bank of Scotland branch, the Post Office or Banking Hubs for their everyday banking, and deposit cash at over 30,000 PayPoint locations.”
The closures come as efforts ramp up to introduce community banking hubs in areas where the last bank branch has disappeared.
However, concerns remain about access to cash and face-to-face services, particularly in rural and elderly communities.
The Financial Conduct Authority (FCA) said the trend is likely to continue as technology advances and fewer people visit branches. It also found that banks have been making cost savings from shutting branches.
What’s more, Government research published in its « Closure of Bank Branches: Impact on Rural Communities » report shows that 76% of people in rural areas live within a mile of a free-to-use cash access point, but only 36% live within three miles of an actual bank or building society.
Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, previously warned: “The closure of bank branches is a vicious circle. The more that close, the more people move online, so more of them close.”
The Covid-19 pandemic has also been blamed for accelerating the decline, with more people switching to mobile and online banking during lockdowns.
