HSBC promises no more branch closures until 2026

HSBC has promised not to close any more branches until at least 2026, The Mail on Sunday can reveal. The bank will tell customers this week that its promise to keep its 327-branch network intact will be extended into next year, and possibly beyond.

This year it will invest 50 million pounds in renovating its sales outlets.

The pledge comes as banks review their branch closure programmes amid claims that up to five million elderly or vulnerable customers who prefer face-to-face service are disadvantaged because they do not have access to internet banking or do not trust it.

The decline in the number of branches has also raised concerns about access to cash, especially for poorer customers and those living in rural areas.

Nearly three million people will live in a parliamentary constituency without a physical bank branch by the end of this year, according to consumer group Which?

Banks are estimated to have closed more than 6,000 branches since 2015 at a rate of 53 per month.

HSBC has closed 743 branches in that period, Barclays 1,220, NatWest 862 and Lloyds 764.

After closing 114 branches in 2023, HSBC has decided to suspend any further closures this year.

“We know that our 327 branches play an important role in serving our customers,” said Christopher Dean, UK head of customer channels at HSBC.

In a bid to keep physical branches on the High Street, Labour has promised to open 350 banking centres over the next five years.

There are currently 68 of these centers, offering individuals and businesses everyday banking services such as bill payment and depositing cash and checks.

They are operated by Correos in partnership with nine major banks, including HSBC.

The Labour Party plans to review the qualification criteria for banking centres “to ensure fair treatment for unbanked towns and marginalised communities”.

Currently they cannot be installed in communities where Nationwide is the last branch in town.

The building society has pledged to keep its 605 branches – the largest network in the country – open until at least 2028.

But Nationwide does not offer banking services to local businesses, clubs or charities, which would benefit from banking centres.

“This poses a serious problem for the roll-out of banking centres if the criteria are not changed,” said campaigner Derek French.

HSBC’s pledge to keep its branches open until at least 2026 could also be “a lock on banking centres for everyone”, he added.

But John Howells, chief executive of ATM network Link, said there would be “no problem” in meeting the target of 350 banking centres over the next five years, noting that 150 more had already been recommended.

Efforts are being stepped up to ensure access to cash for consumers and businesses through a series of new rules to be imposed by the Financial Conduct Authority, the City’s watchdog.

From next month, banks and building societies will face unlimited fines if they fail to consider the needs of local communities before closing branches.

They will also be required to fill any “significant gaps.”