As Santander announced it will close 95 bank branches across the UK, Brits who rely on in-person banking are understandably worried about what that means for their banking needs in the future.
However, this announcement is not all bad news. Digital banking has been around for years and is now more straightforward than ever, offering extra convenience once you are familiar with the online landscape.
Below, we will explore what UK bank closures mean for your finances and cover alternative banking options you can look into if your local branch has shut its doors.
There are two main reasons physical banks are closing in the UK – advances in online banking technology and changing customer habits.
Online banking now offers 24/7 access to accounts, allowing you to view your balance, make instant payments and manage your savings at a time that works best for you. Many banks also offer convenient extra features like mobile cheque deposits and budgeting tools.
As a result, more customers now manage their finances entirely online, which saves them time and eliminates the need for branch visits.
Better banking apps often deliver better customer outcomes, given today’s preference for online banking, but this comes with hidden costs to society. It is important to remember that having fewer physical bank branches will often negatively impact rural communities and can exclude less tech-savvy customers.
Making technology accessible is important to ensure fair access for all, but being able to download an app is not enough. Ongoing emphasis should be placed on banking security, as worries about fraud and cybercrime create another barrier for some consumers.
Whether your local bank branch is closing and you want to know how to bank online or are just curious about digital banking alternatives, we are here to tell you more. Here are a few ways to bank differently:
Nearly all banks now offer comprehensive online and mobile banking services to complement their in-person branches.
These platforms allow customers to check balances, transfer money, pay bills and even apply for loans – all from their smartphones or computers. More and more mobile banking apps now also often include features like budgeting tools, real-time spending notifications and secure authentication methods.
This is the first option to try if your local bank has closed down, as you won’t need to open a new bank account. You just need to familiarise yourself with the online service (which is built to be intuitive for all tech experience levels).
Telephone banking can be a good alternative for those who prefer human interaction. However, this option can come with extra bank fees and you should be prepared for long waiting times before you are put through to an agent who can assist you.
Also, while apps and digital services are now widespread, not all banks provide dedicated customer service phone lines where you can make transactions, ask questions and receive financial advice.
Telephone banking will not replace your physical bank branch experience, but it is a good option for those who struggle with digital platforms and can no longer access banking services face-to-face.
The Post Office now plays a more and more vital role in providing banking services, with some Post Office branches acting as mini bank branches. Depending on where you live, you may be able to use your local Post Office to withdraw and deposit cash, check your balance and pay your bills.
This offers a convenient alternative for those who no longer have a local bank branch, but still want to manage their finances through in-person banking services.
Lastly, digital-only banking is now a widespread alternative to physical bank branches, even if it might be a little too complex for those unfamiliar with technology.
Brands like Revolut, Monzo and Starling provide app-based services with features like instant spending notifications, savings goals and fee-free transactions abroad. They operate online 24/7 and have never had a single physical branch.
As the world of banking continues to evolve, it is important to stay informed and be aware of any new options that may be a better fit for your financial needs. Whether it is a mobile app, a call to your bank or a visit to the Post Office, there are plenty of ways to bank in the modern world, even if your local branch has shut for good.
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