So much of today's banking news is dominated by the near endless growth stories of Neobanks. As impressive as these are, it was the potential return of something far more traditional that recently caught my eye. 

The rapid disappearance of high street branches

Once upon a time bank branches dominated high street's and prime locations across the UK. But as more users adopted online banking the physical branch became an easy target of cost cutting intiatives rolled out by all the major retail banks, a move that has angered many customers who still prefer to do their banking in person. 

The swiftness with which the banks tackled this task was frightening. 

Referencing data from the British Bankers’ Association (BBA) from 1986 to 2012 and the Office for National Statistics (ONS) from 2012 to 2023, which revealed that the number of bank branches in operation in the UK had declined from 14,689 in 1986 to just 5,745 in 2023

More than 6,000 UK bank and building society branches were closed between January 2015 and January 2026.

This year alone Lloyds Banking Group, comprising Lloyds-branded, Halifax, and Bank of Scotland branches, have already shuttered 71 branches leaving the group with just 757 in operation across the UK. Rationalising their branch closure strategy a spokesperson for the group said that more than 21 million customers now rely on mobile and online banking, meaning fewer people are making use of physical branches.

The NatWest Group, which also owns the Royal Bank of Scotland (RBS) and Ulster Bank, have wielded the axe with even greater ruthlessness, culling a staggering 1,400 branches over the past 11 years. I  worked for RBS in the late 1990s, initially as part of a roaming customer service team supporting various London branches, abd then ended up at 28 Cavendish Square. Being a large branch just behind London's top shopping street, Oxford Circus, meant we were often very busy, particularly at Christmas time. Yet, if you visit 28 Cavendish Square today expecting to find a bank you will be sorely disappointed. That branch, along with some of the others I worked at, has been consigned to the annals of history. As with the Lloyds Banking Group, these closures came off the back of increased use of RBS's digital platforms.

Banking has changed dramatically in recent years. There's more demand for mobile and online services, allowing you to benefit from a faster and easier way to bank.

In 2022 Barclays justified their own aggressive branch closures by stating that less than 10% of its transactions were being done in person. More than 800 Barclays branches have shut since 2018 leaving only 206 in operation across the UK.

HSBC, down to just 327 branches, have, if nothing else, committed to keeping them all open until at least 2027.

A change of direction?

Against this backdrop chief executive of Barclays UK, Vim Maru's recent announcement that they intend to revive high street banking by opening branches and bringing back bank managers came as something of a surprise. 

Maru joined Barclays in 2023, having previously worked at the Lloyds Banking Group and Santander, and a year later took over UK operations. In a departure from the group's decade long strategy of branch closures he believes that “Even in a digital world, many customers still value physical presence and the ability to talk to our colleagues when they need support.” 

Speaking to The Times, Maru said: “What we're trying to do is something that allows us to differentiate in front of our customers. Of course we're going to be great in digital – but we're going to be there for you when you need some help and support. You're not going to be stuck in some chatbot trying to get out of the loop and trying to speak to someone.” 

The plan also envisages the return of branch managers, moving away from a heavy dependence on digital services. As Maru told The Times: “Most customers come in and they want to talk to the bank manager from time to time.” 

It will be interesting to see whether this is just a PR stunt or will Barclays UK pull this off and by doing so differentiate themselves in a very crowded retail banking market?

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