The closure of bank branches is not seen as a major concern by those working in the industry, despite the public continuing to express worries about the impact, new research has found.
New findings from CRIF, the consumer and credit information provider, show that 27 per cent of senior professionals working in banking don’t see the ongoing closure of bank branches as a challenge for their business.
However, these views don’t align with those of the public, where 60 per cent of consumers say that closures have made it harder for them to speak to a member of staff when they need support. This is broadly similar across all age brackets too, with over half in all groups feeling this way (57 per cent of 18 to 34s; 58 per cent of 35 to 54s; and 64 per cent of those aged over 55).
Overall, 55 per cent of Brits believe banks now put less importance on serving and looking after their customers compared to five years ago. Similarly, 35 per cent of people say it has become more confusing when trying to get what they need from their bank because they need to find it themselves on the bank’s website or through an app.
Alongside concerns over the ability to access in-person support, 21 per cent of UK consumers say they are worried about the continued closure of bank branches over the next five years.
Sara Costantini, regional director for the UK and Ireland at CRIF, said: “Financial services have changed rapidly over the last decade, as people continue to embrace digital banking and manage multiple aspects of their finances online.
“The knock-on impact of this has been the reduction in physical, in-person banking services. While many working in the sector don’t see this as a major challenge to their business, bank branch reductions are continuing to fuel concerns over the quality of customer services and what further closures may mean for the future.”
Assessing impact of branch closures
Since 2015, over 6,300 bank and building society branches have closed, equal to around 53 per month, with over 370 closures planned for 2025.
CRIF’s data suggests branch closures could impact customer satisfaction and, therefore, loyalty, for those working in the banking sector, closures rank below other challenges their business faces, with increased risk of customer fraud (93 per cent); increased competition in the sector (84 per cent); and increased regulation (83 per cent) ranked as the biggest issues.
The new data forms part of CRIF’s upcoming 2025 Banking on Banks report series. The first report, to be published in June, will identify the biggest changes to the financial services sector across Europe over the last decade, drawing on the views of both consumers and senior financial services professionals working in the UK and serving European markets.
CRIF’s second report, expected later in the year, will look at the trends and issues that are expected to shape European financial services in the decade ahead.
Source: https://thefintechtimes.com/
