Liskeard is one of the many towns across the country to lose one of its banks following the announcement from banking giant HSBC that hundreds of branches are set to close nationally.
This week, HSBC announced that a total of 114 branches across the UK would be closing their doors from April 2023, this on top of the 69 outlets already axed this year. Among those 114 to be closed is Liskeard’s bank.
With this local branch set to close in May 2023, residents have been responding to the news.
Local resident Michelle Down said: “It’s going to mean a trip to Plymouth from Looe, if I need to sort out any transactions or pay a cheque in.
“They kept trying to push me into internet banking, but I like & prefer to bank the old fashion way. If I had any issues I could see & speak to a person direct, rather than being pushed around a call centre. I feel sorry for businesses than need to pay in cash takings for the day or wanting change for their tills.”
However, these closures are not out of the ordinary it seems. Over the last few years, physical banks across the country have been closing their doors, turning their attention to an online-priority system.
One resident believes this is the start of a new approach to money, saying: “A cashless society is en route.”
With regard to these closures, a spokesperson for HSBC said: “Over the past five years, use of the bank’s branch network by regular customers has fallen by 65%. Footfall in the vast majority (74%) of closing branches has reduced by at least 50%. The decline in branch use has accelerated so much since the Covid-19 pandemic that some of the branches closing are now serving fewer than 250 customers a week.
“Conversely, the growth in adoption of remote banking shows a digital-first approach is how more and more customers now want their needs met: Over nine in ten transactions (97.5%) are now completed digitally; usage of the mobile app has almost tripled (up by 280%) since 2017; 250% more digital payments made than five years ago; a 175% increase in cheques deposited through the app since its introduction in 2018, at a time when cheque usage is falling; 99% of all personal loans and 98% of credit cards now taken out digitally; over 220k contacts with the bank over social media in the last three years and almost five times more contact through social media so far in 2022 than in the whole of 2017; and HSBC UK’s secure Live Chat service increased 10-fold in the last three years, handling millions of customer queries each year.”
Jackie Uhi, HSBC UK’s managing director of UK Distribution, said: “People are changing the way they bank and footfall in many branches is at an all-time low, with no signs of it returning. Banking remotely is becoming the norm for the vast majority of us. Not only can we do it anywhere at any time of day or night, many more things can be done at the customers’ convenience and don’t rely on a branch visit.
“Branches will continue to play an important role in day-to-day banking, while providing specialist face-to-face support in moments that matter. In addition to our branch network, customers can access services through the Post Office network, our Community Pop-ups and soon-to-come Banking Hubs, alongside Live Chat, social media and through telephone banking.
“The decision to close a branch is never easy or taken lightly, especially if we are the last branch in an area, so we’ve invested heavily in our ‘post closure’ strategy, including providing free tablet devices to selected branch customers who do not already have a device to bank digitally, alongside one-to-one coaching to help them migrate to digital banking.”
HSBC reports that since 2021, the group has provided several services to support those in areas where branches have closed. The report to have provided 1,500 free Samsung tablet devices to customers who have been selected by local branches who are unable to afford or have no access to equipment to help with digital banking; carried out almost 1,350 HSBC@Home training sessions, educating 10,750 customers and building knowledge and skills when it comes to digital banking; and arranged and attended over 200 community ‘pop up’ events in 2022, providing additional support to customers in areas where a branch may be closing, with over 350 planned in 2023.