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HSBC is set to close 114 UK bank branches next year as footfall to the high street plummets following the Covid pandemic.
According to the firm, the number of people visiting HSBC branches has fallen by 65% in five years.
HSBC said in a statement: “The decline in branch usage since the Covid-19 pandemic has accelerated to such an extent that some of the branches that have closed are serving fewer than 250 customers a week.”
According to the bank, 97.5% of all its banking transactions are now done online.
Jackie Uhi, managing director of HSBC’s UK distributor, said: “People are changing the way they bank and footfall in many branches is at an all-time low, with no signs of coming back.”
248 bank branches have closed in the UK so far this year, with another 288 set to close by the end of December.
In October, the Financial Conduct Authority set additional expectations for banks considering closing branches or ATMs. The guidance, which expected banks to scrutinize the impact of permanent closures on customers, has now been expanded to cover partial closures and require banks to make alternative arrangements for customers.
Uhi says HSBC’s branch closure program meets FCA guidelines: “The decision to close a branch is never easy or taken lightly, especially if we are the last branch in an area, so we have invested heavily in our ‘post-closure’ strategy, including moving to digital banking.” providing free tablet devices to selected branch customers who do not have a device for digital banking, along with one-on-one coaching to help.”
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