HSBC earlier this week announced that two branches in the North East will close this year, as part of the bank's plans to shut 69 branches nationwide.
The news is the latest blow, bringing the total up to eight bank branches planning to close up for good in our region this year - so far. It's the usual story - fewer than 50 per cent customers use its bank branch network, according to HSBC, but that still leaves a sizeable amount of customers who can't or don't want to do their banking online.
A full list of North East closures announced so far this year is:
Read more: HSBC to close two North East branches
Lloyds: Ponteland, closed on February 8 (Nearest alternative branch: Newburn, 4.5 miles).
Halifax: Consett, closed on March 3 (Nearest alternative branch: Metrocentre, 9.5 miles).
TSB: Gateshead, due for closure on May 10 2022 (Nearest alternative branch: Newcastle Northumberland Street, 2 miles); Newton Aycliffe, due for closure on May 3 2022 (Nearest alternative branch: Darlington, 6.5 miles) and Redcar, due for closure on May 4 2022 (Nearest alternative branch: Billingham 8.5 miles).
HSBC: Bishop Auckland, due for closure on August 23 2022 (Nearest alternative branch: Durham 9 miles) and Hartlepool, due for closure on September 1 2022 (Nearest alternative branch: Middlesbrough 8 miles).
NatWest: Gosforth, due for closure on June 22 (Nearest alternative branch: Newcastle Northumberland Street 2.5 miles).
Consumer group Which? has urged banks to put an immediate pause on bank branch closures unless they can prove they can take action to stop people from losing access to cash and valued bank services.
Its analysis shows that 736 branches closed last year, with a further 338 closed or are scheduled for closure in 2022.
The most recent figures from UK Finance, the banking association, show two-thirds of adults (72%) used online banking and over half (54%) used mobile banking in 2020. However, there are still plenty of people and small businesses that rely on local banks and the services they offer.
Anabel Hoult, Which? chief executive, said: ‘The alarming acceleration of bank branch closures has left many people who depend on them for essential banking services at risk of being cut adrift, which seems to fly in the face of work being done across the industry to protect access to cash. While many people can now bank digitally, millions of people are not yet ready or able to do so."
Since 2015, banks and building societies have been disappearing from our high streets at a frightening pace - 54 each month, or 4,851 in total to be precise. The North East has come off reasonably lightly in the cull, with the South East seeing the biggest reduction in branches since 2015, with 623 being shuttered and another 32 planned for 2022.
However, Scotland was the first part of the UK to see over half of its banks close, with 545 of its 1,040 branches closed and another 11 going this year. It has since been joined by the North West, which has seen 561 of its 1,070 banks shut their doors for good, and another 22 set to join in 2022.
Why are so many bank branches closing?
The way we bank has changed dramatically over the past few years, with use of online and mobile rising and fewer people visiting branches. However, some transactions - such as paying in cash or larger cheques or financial advice - cannot be done online.
What are the alternatives to bank branches?
The Post Office
People living in communities where banks have closed are usually pointed to the Post Office as an alternative.
The Post Office earlier this year secured a deal with the major high street banks that will ensure customers can continue to access banking services at its 11,500 branches. The agreement means that customers of all the big banks – including small businesses – will be able to use the Post Office to do basic banking.
But Post Office banking services are limited to withdrawing cash from your current account, checking your balance and paying in cash and cheques if you have a paying-in slip from your bank and can wait an extra day or two for them to clear.
The list of what you can’t do is substantially longer, whether transferring money from your account, or seeking advice and making enquiries about other financial products such as savings or mortgages. Banks themselves usually demand that customers call into a local branch for anti-fraud checks, or to make an appointment to discuss more complex matters.
And with more than 200 Post Offices closing in the past two years, according to Citizens Advice, an increasing number of branches are situated inside newsagents, convenience stores and retailers such as WHSmith - and a solitary counter in a corner shop or supermarket isn’t many people’s idea of a private or personal service.
Mobile banking vans
Lloyds Banking Group offers mobile banking vans, which visit local communities and allow you to cash cheques, make deposits and withdrawals, and pay bills. Current areas served are Bellingham, Chopwell, Esh Winning and Sacriston.
Community bankers
NatWest Group deploys 'Community Bankers' - professional bank staff who travel to areas with no branches and meet customers in shared local spaces, such as libraries, council buildings or leisure centres. Although this is good in theory, there are no signs of this in our region on NatWest's website.
Tech support
Many banks offer help to get people feeling comfortable with using mobile and online banking.
RBS has a team of TechXperts, based in branches helping people set up online and mobile banking and Barclays runs a similar initiative through its Digital Eagles.
What can you do if you simply want to access a bank branch?
If your bank has shut its doors, or is set to do so this year, your only options are to either travel further afield to your new 'local' branch or switch banks.
While switching can be seen as daunting, the Current Account Switching Service, introduced in 2013, takes away a lot of the pain. All your money, standing orders and direct debits will be transferred to your new bank, and future payments in will also be moved over.
Here’s how the switching service works:
- Once you’ve chosen a new account, the new bank or building society will ask you to fill in two forms: a current account switch agreement and an instruction to close your old account.
- This has to be at least seven working days after your new account is opened.
- All your incoming and outgoing payments will be moved to your new account.
- You can carry on using your old account up until the day of the switch. Your old account will then be closed.
- For 36 months any payments into or out of your old account will be automatically redirected to your new account. However, recurring debit card payments are not part of the guarantee.
