HSBC closures: death of high street banks?

seeya23

see link

http://www.walletpop.co.uk/2010/09/06/hsbc-closures-death-of-high-street-banks/

apt

So the closure of 16 out of 1300 branches is the death of high street banking?

chexum

apt wrote: »

So the closure of 16 out of 1300 branches is the death of high street banking?

It's certainly exaggarating, but it's not a recent change. For my area, the branch finder still shows about 20 towns, but if I click on the first two, HSBC says no branch exists in that town (actually 3 towns don't have branches of the 20 listed). Naively, that would be 15 percent alrady gone, which looks more than the ~1% that the above would suggest.

EDIT: I always wonder why staff will tell me when I show up in person to talk about something, that I should use the online banking, or call their CS line to do something - if noone will talk to them, they *will* be made redundant.

JAYk_2

seeya23 wrote: »

see link

http://www.walletpop.co.uk/2010/09/06/hsbc-closures-death-of-high-street-banks/

This is certainly exaggerating.

chexum wrote: »

It's certainly exaggarating, but it's not a recent change. For my area, the branch finder still shows about 20 towns, but if I click on the first two, HSBC says no branch exists in that town (actually 3 towns don't have branches of the 20 listed). Naively, that would be 15 percent alrady gone, which looks more than the ~1% that the above would suggest.

EDIT: I always wonder why staff will tell me when I show up in person to talk about something, that I should use the online banking, or call their CS line to do something - if noone will talk to them, they *will* be made redundant.

I think most times we are responsible for some of these closures, people losing jobs when we insist on using online banking.

pmduk

There has been so many bank takeovers in the past that there are frequently many branches of the same bank in a small area of large towns/cities. Unfortunately these are rarely consolidated, whilst small towns lose their only branch. I suspect that in many areas branch banking will be conducted via the post office counter with most banking being undertaken online or by phone.

The positive aspect of this is that it may prove to be a lifeline for the post office in many of these areas, providing Post Office Counters management is up to the challenge (and I'm not convinced that they are.)

opinions4u

High street banking is very profitable in most locations and will continue for decades to come.

A handful of closures here and there means little when you're looking at the big picture (although a bit of a pain if it's the branch you use where you live/work).

Sometimes banks have more than one branch in a town and are consolidating in to one.

Sometimes a closure in a suburb will follow an expansion of service in a nearby town centre.

Sometimes customers in a locality simply prefer the competition so there's little point carrying on trading there.

Sometimes the demographics of a town have changed, and the footfall has moved to new shopping developments etc.

A far bigger concern for me is the reduction in competition following the takeovers and mergers prompted by the Credit Crunch.

apt

The branch closures following mergers do happen, but tend to happen a while later. E.g. after the Lloyds/TSB merger there were plenty of branches near each other. Plenty of these have now been rationalised. There will be plenty of Santander branches closing in the next year or two. For the communities without bank branches people will have to use the post office or internet. Natwest are always having adverts featuring mobile bank vans, but I don't know how useful the service is in reality.

Lokolo

Is there a list anywhere? I have 2 in my town, 1 is tiny and pointless, although they only just renovated it! Wondered if that was on there, as thats also my "home branch" (where my sort code goes to)

pmduk

A list? there used to be some sort of bankers' almanac listing bank branches, but that goes back 30 years to my days in a building society.

knightfox

High street banking has for a long time being the lower profitable area of banking. So they banks will of course try to get the best return they can from this section of the bank. Investment banking is where the profits come from.

The article I feel is just an advertisment for Metro Bank. They dont even mention Santander. Whilst Santander is the worst for service and staff response. They will following the RBS merger be a major player in the UK banking sector.

But I do agree with the article. Well one line. So is the end of banking as we know it. We it is. How many branches do we go into. All my banking is online. I can even open accounts without going into the bank.

In total this year I have been to a bank twice. That was because I use to have an account at a Building society. They are still working on not going bust. So banking fast payments is not for them.

So even if the branches closed, which they are not. Maybe they could then use the money to provide a better service & interest rates. That would be better for everyone.

Okay there are people who cant get the best accounts. Maybe the post office should be made to support them.

pmduk

The Post Office used to own a very good bank: National Girobank. It was sold by the then Government and has ended up in the hands of Santander.