HSBC has announced a further reduction of its UK branch network, which will see it shut 69 of its 510 branches between July and October of this year. It plans to close 12 branches in July, followed by 24 in August, 27 in September and 5 in October.
Banks are continuing to reduce the number of physical branches, as they accelerate their digital transformation plans in response to the rise of online and mobile banking.
“The way people bank is changing — something the pandemic has accelerated,” said Jackie Uhi, head of HSBC’s UK branch network, in a statement. “Our branches continue to support people with their more complex banking needs, but the way we can do this has also evolved, with the addition of banking hubs, community pop ups and continued use of the Post Office network.”
HSBC said less than 50% of its customers actively use its branches, with the average footfall declining by more than 50% since 2017 — the fastest decline at any point over the past decade.
As part of what it calls a “transformation programme”, HSBC also plans to refurbish its branches throughout the year in key locations, including replacing its 3000 ATMs with new integrated deposit and withdrawal cash machines, and offering free tablet devices for its vulnerable customers.
A spokesman for HSBC told The Banker that no roles at the bank have been put at risk as result of the UK branch closures; it is aiming to redeploy all employees to other roles within the bank.
