Valerie Ford, an 81-year-old resident of West Devon, has lamented over her independence which she feels she has lost due to the rapid bank branch closures across the UK.
She is not the only pensioner that feels this way as many elderly and less-able individuals across the UK are shattered to hear their local high street banks are closing down for good.
For Ford and others like her, the simple act of paying a bill or withdrawing cash has become a significant challenge.
She said: “We badly need a banking hub in my town where there is a high percentage of elderly and retired people who, because of local branch closures, have to travel to Plymouth just for the bank.”
This growing issue highlights the unintended consequences of the banking sector’s rapid shift towards digital services, leaving many vulnerable customers feeling left behind.
The scale of bank branch closures in the UK is staggering. Since January 2015, banks and building societies have closed 6,145 branches, at a rate of 53 per month.
Andy relies on having a local bank so that he can speak to someone in person
Oak Tree Mobility
The shift to digital banking poses significant challenges for many seniors.
Verity Kick from Oak Tree Mobility said: “Age UK’s poll found nearly a third of over 65s are apprehensive about managing their finances online, but the unease isn’t only about technology.”
For many elderly customers, the loss of personal interaction is a major concern.
Shirley Chapple, 84, from Manchester, emphasised this point saying: “We need to go into banks so we can talk to bank [staff] members face to face so they can explain things to us. I prefer this because it’s more personal and friendly.”
Andy Sargeant, 71, from Suffolk, shared a similar view and said: “It’s difficult for us who don’t do online banking. I rely on having a local bank so that I can speak to someone in person – I’m too old and stubborn to start learning computer skills.”
These testimonies highlight the urgent need for accessible banking solutions that cater to the preferences and capabilities of older customers.
Kick continued: “For many, visiting a bank branch goes beyond banking; it’s social engagement and a human connection that digital platforms can’t replace.
“As banks continue to embrace a digital presence in favour of bricks-and-mortar branches, it’s essential to keep it user-friendly, approachable and inclusive for all.”
Over 62 per cent of bank branches has closed since the start of 2015.
NatWest Group leads with 1,406 closures, followed by Lloyds Banking Group with 1,210. Barclays has closed 1,227 branches, the most for an individual bank.
Nationwide, with 606 outlets, now has the most branches remaining open. The building society has committed to maintaining a presence in towns and cities where it currently operates until at least 2028.
These closures disproportionately affect older customers. Age UK’s poll found that nearly 60 per cent of those over 85 prefer face-to-face banking interactions, and 75 per cent of those aged 65 and over prefer in-person transactions at branches.
In response to the branch closures, the UK is rolling out Banking Hubs as a partial solution. These shared spaces allow customers from various banks to access essential services.
The hubs feature a Post Office-operated counter and rotating staff from high street banks. They offer facilities for both personal and business customers to handle cash transactions.
Cash Access UK is overseeing the implementation, with LINK recommending hub locations. Currently, 81 hubs are operational, with plans for more under new Financial Conduct Authority rules.
However, concerns remain about the adequacy of this solution. Verity Kick noted: “With only 350 new hubs planned over the next five years, there’s concern that this isn’t enough in the face of over 6,000 branch closures since 2015.”
Despite these limitations, some seniors welcome the initiative. Shirley Chapple said: “Banking hubs are a very good idea, and I’d definitely use one.”