One personal and business bank account provider recently promised to stop branch closures for at least the next three years as it attempts to build a reputation as the first choice for Brits everywhere, experts say.
The 41 per cent taxpayer-owned Lloyds banking group, which includes brands such as Bank of Scotland and Halifax, freely admitted that its rivals have left it behind in regards to product offerings and customer service. Now, the banking group’s chief executive, António Horta-Osório, has pledged to keep its network of more than 2,900 branches in order to facilitate its improvement.
The chief executive remarked that Lloyds wants to put its customers first, and has taken steps to do so by announcing the branch closure moratorium. The commitment also includes not closing branches if a Lloyds-owned retail bank is the only one left in a community, as closing the branch would impact that community in a negative manner.
Branch closures have been happening at an increasing rate as banks continue to buckle under financial pressures brought about by the 2008 credit crunch. High Street banks closed 187 branches alone in 2010, according to information supplied by the British Bankers’ Association.
The result has been disastrous for 1,000 communities across the UK, according to the Campaign for Community Banking Services, as these closures have left them without any sort of retail banking access. An additional 1,000 villages or towns teeter on the edge with just one remaining bank nearby.
Between banks and building societies, there are only 350 branches for every million Brits, the campaigners say. This compares quite poorly to the 420 per million in France, the 560 in Italy, the 470 in Germany, and the 940 in Spain.