Over the past five years, some of the largest traditional banks have closed more than a third of their º£½ÇÊÓƵ branches, shifting focus from the high street to enhance their digital services.
Data from the Office of National Statistics (ONS) reveals that the number of bank, credit union and building society branches in the º£½ÇÊÓƵ plummeted from 10,410 in 2019 to 6,870 in 2024, marking a 34 per cent decline, as reported by .
The trend of branch closures continued to rise steadily into 2025, with Natwest, Halifax, Lloyds and Bank of Scotland set to shut 113 branches by the end of November.
In March, Santander announced it would close 94 of its 444 branches in the º£½ÇÊÓƵ, with 14 locations closing this month alone.
Nationwide stands as one of the only traditional lenders not implementing closures, pledging to keep its branches open until at least the beginning of 2028.
º£½ÇÊÓƵ banks close faster than EU peers
º£½ÇÊÓƵ banks are closing at a faster rate than their European counterparts, according to figures from management consultancy Kearney.
Only Spain and the Netherlands have closed more branches than the º£½ÇÊÓƵ, losing 37 per cent and 48 per cent of their physical branches respectively over a five-year period.
These widespread closures come as an increasing number of customers choose to bank online.
From 2020 to 2024, the proportion of customers using digital methods to access banking products increased from 33 per cent to 59 per cent, making online banking a more popular choice than visiting a branch.
Sameer Pethe, a partner at Kearney, told the Financial Times, "This isn't simply about doors closing or cost cutting.
"It's a clear signal that high street banks are reshaping their operating models, doubling down on digital as online becomes second nature for most customers."
Fighting off fintechs
Established banks have been racing to hold onto customers and match the pace of fintech competitors in recent years, including Monzo, Chase and Revolut.
Peter Tyler, director of personal banking at º£½ÇÊÓƵ Finance said, "The way that we bank has been changing for some time, with a shift to digital services which is driven by customer demand.
"That has led to a reduction in footfall in branches."
Nevertheless, the growing wave of closures has sparked customer anger, with many concerned they will lose the ability to withdraw or deposit cash, particularly affecting elderly and vulnerable account holders.
To address these concerns, the previous government's ministers introduced Access to Cash legislation aimed at stopping towns and villages nationwide from becoming "banking deserts".
Last year, the FCA mandated that banks and building societies evaluate local cash availability and offer alternative solutions where network shortfalls are identified.
Responding to this pressure, the industry established "banking hubs" enabling customers of major lenders to conduct cash transactions. By 2024, banks had committed to establishing 350 hubs on º£½ÇÊÓƵ high streets by 2029, which will be managed by the Post Office, with 179 already in operation.
