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HSBC pledges no more branch closures until at least 2026

The bank also said it was planning to spend more than £50 million this year on updating and improving its branch network.

Anna Wise
Monday 12 August 2024 08:10 EDT
HSBC has promised it will not announce any new closures of its bank branches until at least 2026 (Lucy North/PA)
HSBC has promised it will not announce any new closures of its bank branches until at least 2026 (Lucy North/PA) (PA Wire)

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HSBC has promised it will not announce any new closures of its bank branches until at least 2026, extending a commitment to face-to-face banking amid a wider cull of branches on UK high streets.

The banking group also said it was planning to spend more than £50 million this year on updating and improving its branch network.

The pledge means the bank must keep its 327 branches running for the next year-and-a-half, and possibly longer.

It previously committed to announcing no new closures in 2024.

Meanwhile, thousands of bank branches across the UK have been shut in recent years, leaving many towns without any local services.

Consumer group Which? said in May that more than 6,000 had closed since 2015, with Lloyds, NatWest, and Barclays among those drastically slimming down their nationwide network. HSBC closed more than 700 in that time.

Major banks say there are far fewer customers who are using in-person services, with more people preferring to use mobile and online banking.

HSBC admitted that the number of regular customers visiting branches has dropped by an average of 65% over the last five years.

However, it revealed that five million customers have visited one so far this year, especially for more complex banking inquiries.

The UK’s financial regulator is set to introduce new rules, coming into effect next month, requiring banks and building societies shutting branches to do more to make sure people can still access cash.

This includes setting up alternative services like banking hubs, ATMs and Post Office facilities.

Banking hubs allow staff from several banks to share the same space. They have a counter service operated by the Post Office for some services like withdrawing and depositing cash and paying in cheques.

HSBC said it was going to offer services in 100 shared banking hubs by the end of the year, from its current 41.

It has also hosted community pop-ups with some banking services in local places like town halls, hospitals, garden centres, libraries and some WH Smith shops.

Christopher Dean, HSBC’s head of UK customer channels, said: “We know that our 327 branches play an important role in serving our customers, which is why we are investing more than £50 million in refurbishing and remodelling works across our network this year.”

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