UK bank branches are shutting down at an alarming rate. Banks have taken these actions in response to the surge in adoption of mobile and online banking services.
Which?, a UK-based consumer advocacy organization, has kept tabs on the number of bank closures since 2015. Its data indicates that 5,600 branches have been shuttered since January 2015, an average of 54 bank branches monthly.
The bank that has had the most closures of all the banking groups, Barclays, came in at 1,077 closed branches.
According to Which?, 427 branches have been closed so far in 2023, with another 220 planned for later this year. For 2024, there are already plans to shut down 42 more.
Will a Cashless Society Foster Financial Inclusion?
The acceleration toward a more cashless society is well underway. During the height of the pandemic and afterward, the digital payment landscape took a dramatic turn toward contactless payments. Fintech companies also delivered on rising consumer demand for cashless payment methods, including digital wallets, mobile payment apps, online banking, and cryptocurrency.
A cashless society certainly has its benefits, such as protection against theft. It’s more convenient to buy and sell without needing cash, and the cost of handling cash is mitigated. It also promotes financial inclusion as the underbanked and unbanked can still have access to financial services, even if they do not have a bank account or have a local bank branch nearby.
Although digital payment methods have gained significant popularity and traction worldwide, what will happen to those who are not inclined to get on board with these methods and prefer to use cash?
When it comes to digital banking, the elderly populations are facing the most setbacks. Many still prefer to speak to someone at their local branch. Furthermore, a significant barrier to digital adoption resides with many elderly people, who are not prepared or equipped to take on these new digital payment methods and banking. Many people aren’t ready to say goodbye to cash just yet.