That the British Banking industry has not been going great guns since 2010 is nothing new, with many local branches closing down. More additional branches can be expected to close down in the coming years. Most of the top banks in the UK have put out long lists with names of local branches that they are supposed to shut in 2018, and these could be as many as 525. Banks are attributing this change to a rise in online transactions and a consequent decline in the number of customers approaching banks. But what do such closures mean for highstreet banking in Britain and how it will affect you? Read on to find out.
Going the distance
The rise of online banking has made transactions easier, and you do not need to rush to your local branch for everything – whether it comes to funds transfer, changing your ATM pin, updating your address, making enquiries about account balance etc. However, if you are not sufficiently computer literate or lack internet access for online banking, you need to travel a longer distance to access the nearest branch.
Difficulty in securing small business funding
Closures of local branches can also make it tougher for you to secure funds for your local small business than ever before. Although most people will face no problems or only minimal issues, people from some communities are likely to face hurdles when it comes to getting funds and handling finances. It is therefore, up to the banking companies to decide how to ensure that local communities do not fall back in the business sector.
Banks cannot afford to lose out on customer satisfaction, and the British Bankers Association has recently mentioned that it does not wish to leave any business or customer behind. Thus, you can expect banks to offer training to customers in using web-based systems for transactions and other related banking activities. New guidelines are going to come to effect this year, and banks are going to train some of their staffs to use the internet or other methods for banking and transferring the knowledge to elderly people or disabled individuals in their family or social group.
While these are some of the immediate impacts that are visible on the horizon, the long-term impact is difficult to predict in entirety. You need to wait and watch to see where modern British banking heads to after the closure of multiple local branches.