HSBC is to shut another 62 bank branches the year.
The decision is likely to lead to 180 redundancies.
Francesca McDonagh, HSBC’s head of retail banking, said: “Fewer people are using branches. More than 90% of our interactions with customers are now through our digital channels – an increase from 80% last year.
“The decision to close these branches ensures a more sustainable branch network for the future as we continue to invest in our digital platforms and our people.
“We will have fewer but better branches, with more empowered front-line colleagues using a greater range of technology to support all our customers’ needs.”
Steve Arnison, director of LexisNexis Risk Solutions, added: “More and more banks are turning their backs on bricks-and-mortar branches, and instead dedicating their focus and investment on digital alternatives such as online banking or mobile apps. Research that we conducted earlier this year has however highlighted that this may not be what the tech-savvy Millennial customer actually wants.
“The LexisNexis Risk Solutions, ‘UK Millennial Study: Privacy vs. Customer Experience in Financial Services’ report showed that 61% of Millennials in the UK would prefer to open a bank account in person, and 47% would rather open a credit card account in branch. These findings highlight that although these younger consumers may want the convenience of a digital offering, they still value the human interaction and face-to-face customer service that they get in branch.
“There is therefore a pressing need for financial institutions to balance the level of friction that customers will tolerate with the need to safeguard these individuals against fraud, whilst also innovating to meet the demands of an increasingly digitally-savvy customer base. If banks can master an omni-channel approach across online, mobile and bricks-and-mortar, they will reap the rewards, which could include higher customer retention and loyalty levels.”