In a surprising twist, banks and building societies are bucking the trend of branch closures, with many committing to keep their physical locations open for years to come. This mini-renaissance for brick-and-mortar banking is a welcome relief for customers, particularly in towns like Northampton, where in-person financial services remain a critical need.
Despite the wider industry shift towards digital banking, leading institutions such as HSBC, Barclays, and Nationwide are pausing closures and even opening new branches. HSBC UK has pledged to maintain all 327 of its remaining sites until at least 2027, while Barclays has extended opening hours at 87 of its 200-plus branches.
Challenger banks are also getting in on the action, with Metro Bank launching three new locations in Gateshead, Chester, and Salford, and Newcastle Building Society investing millions into a Grade II listed building to open a new branch in the city centre.
Nikhil Rathi, chief executive of the Financial Conduct Authority, notes this shift, saying, “You’re starting to see more of the major financial institutions actually seek to make a virtue of the fact that they’re going to keep branches open for a certain period, and that is a shift.”
One of the biggest commitments comes from Nationwide, which has promised to keep 696 branches open until at least 2030. This news was a relief for Jatish and Sudha Shah, a couple in their 70s who rely on the ability to visit their local Virgin Money branch in Northampton, just 300 metres from a Nationwide site.
“I know we could do it online and I’m quite capable, but I prefer face to face,” says Jatish, who is hard of hearing and often needs a private space to discuss his account.
While the move to digital banking has led to an overall decline in branch visits, with a fifth of UK customers not having visited a branch in the last two years, banks are recognising the value of maintaining a physical presence. As John Cronin, head of research and analysis firm SeaPoint Insight, explains, “There is a sweet spot where you try and push as many customers on to digital channels as possible, but it is still constructive to have physical locations.”
The trend is even drawing in younger, digitally-native customers, with more 18- to 24-year-olds visiting a bank branch last year than those aged over 65, representing 72% of customer visits.
“It’s a misconception that younger customers only care about digital banking,” says Peter Rothwell, a partner and head of banking at KPMG UK. “While they appreciate seamless apps, many still value having a local branch, whether it’s to deposit cash from a side job or a birthday gift.”
At the same time, older customers remain some of the most loyal and financially significant clients, expecting not just convenience but also competitive rates and attentive service from their traditional banks.
As the industry evolves, banks are adapting to serve customers of all ages and needs, offering digital innovation while maintaining the personal touch that matters to every generation. This revitalisation of the high street is a promising sign for the future of banking in Britain.