Why are so many High Street banks closing ?

[Deleted member 226268]

I thought that they were the only businesses left on the high streets who make any money.

Now our only dealings with the banks to sort problems will be through 2 hour phone calls to Indian call centres.

https://www.mirror.co.uk/money/lloyds-bank-closing-branches-12379236
https://www.mirror.co.uk/news/business/259-royal-bank-scotland-natwest-11618408


Post offices are taking over the bank's high street role, you can access and use your own bank account,....... in the post office.

However, The Post Office are also closing down even more branches.

http://www.dailymail.co.uk/news/article-109008/3-000-post-offices-close.html

Ken Dodd had the right idea.
We will soon, all need to have suitcases stacked under the bed.

.

 

[Mr D]

Is there the same reason now for high street branches as there was 30 years ago?

What does the branch do these days? How much of what people do with their bank is via the branch and how much via phone, internet and apps?

Besides businesses dropping off cash and people drawing sums of cash out larger than the machine will allow, what is the purpose of the branch? What can be done at the branch that cannot be done by phone, internet or app?

Oh and the post office were doing access to bank accounts around 15 plus years ago. I was banking cash in Lloyds TSB via the post office back then.

 

[Newchodge]

High Street Bank branches are closing because they are used by too few people.

Same reason lots of small businesses close.

 

[Deleted member 226268]

Is there the same reason now for high street branches as there was 30 years ago?
30 years ago you could sit over a cup of tea and a Wagon Wheel with a bank manager who actually knew your Dog's name, discussing a mortgage application or a loan.

What does the branch do these days?
Nothing, except tell you to call their "help" centre.
...... Centre in New Delhi.

How much of what people do with their bank is via the branch and how much via phone, internet and apps?
Banks have now re-designed the system so you have to do all the work yourself on your phone, the work that bank staff used to do for you when sitting in the branch.
Now they don't have to employ anyone.

Besides businesses dropping off cash and people drawing sums of cash out larger than the machine will allow, what is the purpose of the branch?

For businesses dropping off cash, where else can they deposit it.
Also for people drawing sums of cash out, more than £ 200 larger than the machine will allow.

What can be done at the branch that cannot be done by phone, internet or app?
Instant Paperwork.
Today, not next week.

Oh and the post office were doing access to bank accounts around 15 plus years ago. I was banking cash in Lloyds TSB via the post office back then.

Now it will be for all of the banks, who have joined the scheme, not just Lloyds, and most other banking services the Post Office did not offer before.

.

 

[Mr D]

Now it will be for all of the banks, who have joined the scheme, not just Lloyds, and most other banking services the Post Office did not offer before.

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So all banks that have joined the scheme will benefit, exactly like all banks that joined the scheme previously have benefitted.
The scheme may have expanded a little but is still presumably only open to those banks who join.

Yes banks have now designed the system so you do all the work yourself on the phone. Able to do in a few minutes at a time convenient to me what used to take 90 minutes nipping out to the bank at lunch time.

Yes we agree that people dropping off cash and people wanting more cash out than machine will issue have a need for branch. Presumably no one else needs the branch?
No business requirement for the bank to have a staffed branch then. They could just have a paying in system coping with multiple bank deposit systems in a central area and set the cards to issue more on entering a code. Both minor changes far cheaper than having a high rent staffed branch open.

Instant paperwork? Don't think I've ever come across that in a bank. I've done most of my loans, card applications, account applications, mortgage applications and probably 99% of my contact with the bank itself by phone or internet. Instant paperwork for a chunk of that, no waiting around and in the case of the loans usually have the money within a few minutes. None of this appointment crap, no sat waiting.

What would you suggest to a business whose face to face contact has declined with the rise in other methods of contact, whose branches are in high rent areas, who have a number of staff in each branch who of course have to be paid even if the branch doesn't make enough profit to cover? Forget the fact its banks, what would you suggest to any business that has seen such change?

 

[JEREMY HAWKE]

The banks have closed here and a mobile bank comes during the week

People que up to use it I don't know what is the matter with them

 

[fisicx]

Can’t remember the last time I needed to go to a bank. And when I did it was to use the ATM to deposit a cheque.

 

[Chris Ashdown]

we visited every week to pay in cheques from larger companies and always had a 20 min wait to get to a teller. always plenty of people at queue for assistance that was at \Lloyds gt Yarmouth and same at Barclays

 

[Nick Dewdney]

I remember the daily run to the bank when people paid by cheque but nowadays I never go in, I even order foreign currency over the phone via telephone banking and it arrives next day by post.

I think the days of branch banking are very limited, I can imagine there being just a presence in small towns and a network soley for the big cities

 

[Chris Ashdown]

They could just use uncommon sense and get together and just have one unit open dealing with all the big four problems and handling cash with shared costs

No far to simple, give the money to the post office

 

[Paul Norman]

It is a simple matter of economics.

Keeping a branch open is very expensive. Relatively few things require a visit to a branch, and that business can be done from fewer, centralised, places. Those places, of course, will be busy still.

There is no requirement, and no commercial reason, for a bank to keep a branch open so that I can pop in there twice a year to pay in a cheque.

My business account fees are tiny, really, and have no risen for years. I get minimal service for minimal cost.

Which is fine. It is basically what I signed up for. I guess what would be nice, for those businesses that want more, would be to have a higher cost service available.

 

[Jasondb]

What I noticed when I used to go to the West Country annually for alternative speeches was the the Co-op had taken on the role of dispensing cash from its tills after the local banks closed. A number of locals were unhappy yet could at least get cash with their cards.

 

[MikeJ]

There is no requirement, and no commercial reason, for a bank to keep a branch open so that I can pop in there twice a year to pay in a cheque.

You can pay in a cheque by photo/phone with a few banks now.

My bank is 400 miles away. I never changed it when I moved to Scotland. It's not been a problem in the last 20 years.

 

[Paul Norman]

You can pay in a cheque by photo/phone with a few banks now.

My bank is 400 miles away. I never changed it when I moved to Scotland. It's not been a problem in the last 20 years.

Yes. Exactly. I didn't move my bank when I relocated either. There is utterly no point.

I do smile when, on forms, I get asked for the address of my bank. I have no idea. I remember the town its in. If it is still there.

 

[Mr D]

Yes. Exactly. I didn't move my bank when I relocated either. There is utterly no point.

I do smile when, on forms, I get asked for the address of my bank. I have no idea. I remember the town its in. If it is still there.

That used to backfire, I once applied for a loan in a branch that was in a different computer area than my home branch was. This was back in the late 90s and the branch was aware I had an account but they couldn't process the loan without some paperwork being filed internally.

Wasn't country border, wasn't even region border. Just some strange internal border and I had applied at a branch a few miles inside a different border.

 

[Deleted member 226268]

I want to speak with the bank manager please.

I am sorry.
The bank manager is currently having a firmware upgrade.

A Scary new future for the sheeple.

https://abcnews.go.com/Technology/wireStory/shanghai-automated-bank-vr-robots-face-scanning-54654991

This will start to happen here soon.
Mini faceless Robo-banks tucked away in corners of supermarkets.

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[Mr D]

I want to speak with the bank manager please.

I am sorry.
The bank manager is currently having a firmware upgrade.

A Scary new future for the sheeple.

https://abcnews.go.com/Technology/wireStory/shanghai-automated-bank-vr-robots-face-scanning-54654991

This will start to happen here soon.
Mini faceless Robo-banks tucked away in corners of supermarkets.

.

Better customer service. Can hardly be worse than in the branch.

 

[Paul Norman]

Getting no standard things from the bank will become impossible.

All decisions will be made by algorithm.

I remember when I had a property based idea that need a little help from the bank. I made an appointment with the Bank Manager. I popped in. We drank tee. I explained why this idea was good. Eventually, he agreed and we shook hands. We actually physically shook hands.

They lent me the money I needed. I did the deal. I paid the money back a year later as agreed.

Today, the computer would say no. And I would have to make my own tea.

 

[Chris Ashdown]

Only if you brought it with you, along with the the kettle, cup and signed a health and safety form and had the kettle Patt tested

 

[Mr D]

I want to speak with the bank manager please.

I am sorry.
The bank manager is currently having a firmware upgrade.

A Scary new future for the sheeple.

https://abcnews.go.com/Technology/wireStory/shanghai-automated-bank-vr-robots-face-scanning-54654991

This will start to happen here soon.
Mini faceless Robo-banks tucked away in corners of supermarkets.

.

Any IT people want to run banks?

https://www.computerweekly.com/opin...s-it-time-for-IT-people-to-run-retail-banking

 

[Deleted member 226268]

You say there was £ 230,000 in your account, sir ?

I'm really sorry,
I cannot find any account details under your name and account number.
That number does not exist on our system.

......... are you sure the account was with us, at TSB ?

Maybe I can put you through to our Indian call centre, sir.

https://www.theguardian.com/busines...-banking-mobile-app-paul-pester-business-live

.
Maybe it is becoming more urgent not to use banks at all.

 

[Mr D]

You say there was £ 230,000 in your account, sir ?

I'm really sorry,
I cannot find any account details under your name and account number.
That number does not exist on our system.

......... are you sure the account was with us, at TSB ?

Maybe I can put you through to our Indian call centre, sir.

https://www.theguardian.com/busines...-banking-mobile-app-paul-pester-business-live

.
Maybe it is becoming more urgent not to use banks at all.

Helps if the customer uses the right bank.

I temped at Lloyds TSB for a few months, a customer paid in a cheque for a Barclays account and the system accepted it. And of course the customer the following week queried what had happened to his cheque and why it wasn't showing on his Lloyds TSB account.

 

[KAC]

There are no longer any bank branches or free ATMs in Rochester, Kent which at times of the year can be teeming with visitors from all over the world. Last branch with free ATM closed 2 weeks ago. Now only fee paying ATMs

 

[Mr D]

There are no longer any bank branches or free ATMs in Rochester, Kent which at times of the year can be teeming with visitors from all over the world. Last branch with free ATM closed 2 weeks ago. Now only fee paying ATMs

So perhaps not worth the effort of any one bank to have branches there then.
As for the free ATMs, maybe someone thought they'd be of more use in poorer areas of the country.

 

[Chris Ashdown]

TSB problems is a sign of how complicated and out of date the existing bank software is, with more to follow as the big four will need to implement new software in the future as patching up existing software is not a long term solution, leaving TSB and Metro as the only reliable systems for the near future

Its near impossible to understand the complexity of the big four banks systems for integrating with the public demands whilst fighting the unpresented levels of security needed on patched up systems

 

[estwig]

There are no longer any bank branches or free ATMs in Rochester, Kent which at times of the year can be teeming with visitors from all over the world. Last branch with free ATM closed 2 weeks ago. Now only fee paying ATMs

Pop into spoons, buy a pint of ale and get upto fifty quid cash back!

 

[Chris Ashdown]

Lots of Oysters though, Luverly Juberly

 

[Mr D]

TSB problems is a sign of how complicated and out of date the existing bank software is, with more to follow as the big four will need to implement new software in the future as patching up existing software is not a long term solution, leaving TSB and Metro as the only reliable systems for the near future

Its near impossible to understand the complexity of the big four banks systems for integrating with the public demands whilst fighting the unpresented levels of security needed on patched up systems

One way or another the customers will pay for a new computer system. Which has to both integrate with other older systems plus be able to handle this decade and the next.

 

[Tigris]

High Street Bank branches are closing because they are used by too few people.

Same reason lots of small businesses close.

I find a lot of banks reducing there opening times and even shutting certain days of the week as well as Saturday/Sunday. When I got into my local bank people are lining up to the door and even outside at times.

 

[Jasondb]

I find a lot of banks reducing there opening times and even shutting certain days of the week as well as Saturday/Sunday. When I got into my local bank people are lining up to the door and even outside at times.

Metrobank opens 8-8 I think and certainly Saturdays, not sure about Sundays.
I don't think they have yet expanded much across the country.

 

[Mr D]

Metrobank opens 8-8 I think and certainly Saturdays, not sure about Sundays.
I don't think they have yet expanded much across the country.

My first overdraft request I had to skip an afternoon of school to arrange. My first loan request I had to take a half day off work to go into the branch and arrange.
This was back in the days of 9.30 to 4.30 for bank opening hours and even leaving work at the earliest time, 3.30, I could not get to the bank before 4.15 and often later.

Things have become a lot easier for the customer since.

 

[Deleted member 226268]

The original question could also have been ....
Why are so many High Street shops closing ?

http://www.dailymail.co.uk/news/art...Images-dozens-deserted-shops-shock-Scots.html

Not just Scotland, this scene depicts any high street, any town, any county ... UK.

Must be financial suicide considering taking on a lease for any type of high street shop or commercial building now, even Poundland and charity type shops are moving out.

Ridiculous council business rates, rigid use classes, stupid and inflexible lease terms,
shopper's parking costs and risk of parking fines from the predatory car park zombies.

No point even opening a new high street coffee shop, there will not be any shoppers left to visit.
Everyone is going internet shopping.

I expect that banks will soon start refusing loan requests for financing any type of high street shop ventures = too risky.

Isn't it about time that May woman started DOING something ?

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[Mr D]

The original question could also have been ....
Why are so many High Street shops closing ?

http://www.dailymail.co.uk/news/art...Images-dozens-deserted-shops-shock-Scots.html

Not just Scotland, this scene depicts any high street, any town, any county ... UK.

Must be financial suicide considering taking on a lease for any type of high street shop or commercial building now, even Poundland and charity type shops are moving out.

Ridiculous council business rates, rigid use classes, stupid and inflexible lease terms,
shopper's parking costs and risk of parking fines from the predatory car park zombies.

No point even opening a new high street coffee shop, there will not be any shoppers left to visit.
Everyone is going internet shopping.

I expect that banks will soon start refusing loan requests for financing any type of high street shop ventures = too risky.

Isn't it about time that May woman started DOING something ?

.

In which case the question could have been asked a dozen times or more in the past 30 years.
The doom and gloom was reported a long time ago, the high street appears to be still there.

Chicken little screaming about the sky falling doesn't tend to work after repeating it multiple years without the sky actually, you know, falling.

2013 - http://www.dailymail.co.uk/news/art...line-shopping-nation-spending-1-175-each.html
2017 - http://www.growthbusiness.co.uk/dea...-for-retailers-to-throw-in-the-towel-2549711/
2011 - https://www.hkjewellery.co.uk/articles/is-the-high-street-dead
2016 - http://www.dailymail.co.uk/news/article-4018692/What-death-high-street-shops-says-Britain-today.html
2015 - http://eprints.whiterose.ac.uk/85674/3/Death of the high street OA.pdf
2013 - https://issuu.com/hollyriddington/docs/declineofthehighstreet

Edit - oh and the stupid and inflexible lease terms were apparently acceptable at the time lease was signed. Or else why sign it?

 

[vvaannmmaann]

The Manager at HSBC in Tunbridge Wells tells me that one of her satellite branches in a small town near to TW had just 16 customers in 2017.
Her branch now mainly deals with "life events" (deaths, change of circumstance, marriages etc.) and she reckons there will always be a need for large branch offices to deal with those things.

 

[Chris Ashdown]

Never been in a empty bank yet, always seem to have to join a long queue

 

[AWA Training]

I agree with the above, never been in an empty bank myself always have a queue. I suppose with increased banking being done online. Payment of bills, now mobile banking. Why does someone really need to visit a bank?
To pay cash in?
Get a mortgage
Apply for a loan?
Open certain accounts?
To bank while their online services are being reset?

I agree i think while there are operations that need a physical bank with a member of staff to serve there will always be one. The reason for them closing, probably less and less need for a bank.
I for one, have not had the need to visit my local bank for years.