The bank’s decision was driven by rising customer preference towards mobile and online banking, which increased since the beginning of the pandemic
HSBC Data Processing Centre in Bangalore, India. (Credit: PageImp/Wikipedia.)
HSBC UK has announced the restructuring of its branch network, which includes the closing of 69 bank branches and customising branch formats for each local community.
The bank’s decision on restructuring was driven by rising customer preference towards mobile and online banking, which increased since the beginning of the pandemic.
According to HSBC, less than 50% of its customers currently actively using its branch network, where the average footfall decreased by 50% since 2017.
The new branch approach will include community pop-ups, new integrated self-service machines, colleague-assisted digital support, and the use of the Post Office network.
Upon completion of the branch closure, the bank will have a network of 441 branches, including 96 full-service, 172 cash service, and 173 digital service branches.
HSBC UK branch network head Jackie Uhi said: “Our branches continue to support people with their more complex banking needs, but the way we can do this has also evolved, with the addition of banking hubs, community pop ups and continued use of the Post Office network.
“Rather than a one-size fits all branch approach, it’s an approach built around the way different customers are choosing to bank in different areas.”
The branch restructuring programme includes refurbishing branches in important locations, to enable the branches to better support customers with their digital needs.
Under the programme, the bank will install new integrated deposit and withdrawal cash machines and offer free customer tablet devices to its vulnerable customers.
It will conduct a customer outreach programme through telephone and face-to-face interaction, which aims to make its customers aware of the support available.
Also, the bank will conduct HSBC@Home digital education sessions, and HSBC-run community pop up events in local libraries and community halls.
HSBC UK has teamed up with LINK and the Cash Action Group on an industry-wide effort to provide banking services in areas where running a branch is not possible.
The bank claimed that it is following the regulatory guidelines, working to ensure any impact of the closures on access to cash and support for the affected customers.
Uhi added: “We know that the majority of our customers have a preference to do much of their day-to-day banking online or via mobile, so we’re removing locations where we have another branch nearby, and where there is a significant reduction in customers using face-to-face branch servicing.
“This will enable us to invest in locations where our customers are continuing to utilise the branch network, including updating technology and refurbishing branches.”
In a recent development, HSBC has agreed to divest its operations in Greece to local bank Pancreta Bank, as the bank shifts its focus to the Asian market.