22 January 2007
As more consumers turn to online banking to manage their current accounts, many of the high streets' top banks and lenders are choosing to close their rural branches.
HSBC alone has announced that five more branches will close in the near future, following on from six closures so far this January and the 18 closures made last year. It also revealed that as many as 100 of its community branches may be closed in the next 12 months.
A spokesman told the Guardian: "We closely monitor customer usage of our branches and make decisions regarding changes in staff levels, opening hours, relocations and closures based on usage patterns and on potential for growth.
"A decision to close invariably reflects a long-term decline in customer use of the branch," he added.
HSBC claims that its drive to encourage its customers to use internet banking has allowed it to become more environmentally friendly, since online users do not need make unnecessary journeys to their bank, saving money on petrol and reducing carbon emissions from its consumers.
Consumer campaigners are now concerned that the decision to close some of the more local bank branches may be cutting off banks' less mobile customers, including the elderly, the disabled and those without their own transport.
The Campaign for Community Banking Services is one such action group and is currently campaigning for the cull of regional branches to be stopped to prevent financial exclusion for the most vulnerable members of society.
© 2008 Adfero Ltd
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