Incumbent banks are facing greater scrutiny from the UK’s Financial Conduct Authority (FCA) when looking to reduce their physical branch networks. The FCA’s warning is set against the backdrop of industry-wide digital transformation and digital acceleration, as well as greater competition from new digital-first fintechs.
The FCA’s proposed guidance for UK banks and building societies would oblige them to assess the impact of changes to their services such as shorter branch opening times and, crucially, branch closures. The proposal aims to address bank customers’ service gaps, such as those with poor or non-existent mobile or broadband facilities, or those without a smartphone and who may have depended on a physical branch for their banking needs all their lives.
