This case study illustrates how HSBC – the world’s local bank and pre-eminent in reduction of carbon emissions-  has rejected a ground breaking opportunity to reconcile its need to reduce operating costs with continuing service provision to local communities and protecting the environment.  Damage to its brand and reputation is significant as it repeatedly rejected  the opportunity to save 500 tonnes (1.4m miles) annually in this featured case and, potentially, huge multiples of this nationwide in the future.   

Shepshed
A Leicestershire ‘market town’ with hosiery industry roots; now growing its 15000 population on its proximity to the M1.  The town had 4 banks;  NatWest closed in 2000 and the last, HSBC, on  January 5 2007.  Two post offices and a local building society remain.  Nearest banks are 5 miles distant, across the M1 in Loughborough where HSBC is spending £1.4m to provide an unpopular “retail experience”.

HSBC
Occupied a purpose built banking premises, built around 1960, but staffing and status had been reduced to 2 cashiers, effectively stunting business growth as accounts could not be opened nor products adequately discussed. As a result HSBC’s market share was only 15% despite the bank enjoying a geographic monopoly for over six years.

The Campaign
Soon after the closure was announced the Treasury Committee recommended exploration of shared branching as an alternative to bank closures. RBS/NatWest showed no interest in taking over ;  accordingly the campaign to prevent closure in Shepshed- a town and bank premises eminently suitable for a shared branching pilot- majored on seeking a 12 month deferment pending the outcome of the recommended exploration. The most suitable premises having been disposed of,  the likelihood of a banking facility in Shepshed in the future is remote.
A vigorous cross party local campaign was run from the Town Council, with District Council support, resulting in a petition signed by 1400 and a meeting with the HSBC’s Area Director.  Extensive and continuing local and regional media coverage-press, radio and television- was augmented nationally by features in The Mail on Sunday x 2 and The Guardian.

The constituency MP got the Group Chairman of HSBC directly involved in the case and had a meeting with the Regional and Area Directors.  The environmental pressure group Transport 2000 also pleaded with the Group Chairman, contrasting the bank’s continued refusal to defer this one token closure with its widely proclaimed ambition to reduce carbon emissions:  shared branching in Shepshed alone could save 500 tonnes a year.   HSBC’s concurrent January ‘Green Sale’ was based on its “commitment to improving the environment and reducing the environmental impact of our day to day business”.  CCBS has been actively involved in the campaign at all levels.

Result
HSBC shut  the bank as planned on January 5; the free ATM is to be relocated but NatWest closed the only other free ATM in the town a week later.   HSBC resisted pleas to delay sale (£135K) of the uniquely suitable  property  pending the possibility of a shared branching pilot and sold it in May.

All responses to key campaigners took the same narrow view based on the indisputable business case for closing the Shepshed branch but with no recognition of the wider issues involved despite these being brought to the attention of HSBC repeatedly at the very highest levels from a variety of influential sources.  Much was made of the increasing popularity of alternative ways to bank but with no appreciation that this is at the core of the shared branching proposition which provides a cost-effective way of continuing to ensure sustainability of communities and protect the environment.

Campaign for Community Banking Services
www.communitybanking.org.uk
31 January 2007   (Updated 15 May 2007)