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NEWS RELEASE |
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| 12 March 2006 |
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| Opening Branches Not A Banking ‘U’ Turn Government needs to act now to avoid new threat |
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| Recent announcements by HSBC and Halifax of branch openings are not, as widely reported, a reversal of the branch closing trends identified in last month’s comprehensive analysis by the University of Nottingham, and could accelerate it. Halifax’s 50 new branches, over 5 years, are to be in London and the South East, where the affluent high streets most likely to be targeted already enjoy multiple choice of financial services providers. HSBC is reported as going for out of town retail and business parks for its 50 new, predominantly sales orientated, outlets as part of a “reshuffle”of branches within conurbations and admits that some “unprofitable” branches will be shut. Barclays too has intimated it is considering “relocation” from high streets to out of town sites. Meanwhile we continue to see branch closures in rural communities and deprived inner cities,as well as suburban areas, and can expect to see these programmes stepped up if the new high cost retail outlets don’t deliver the projected sales explosion and the big banks continue to disappoint professional investors with their lack-lustre UK retail banking performance. Derek French, Hon Director of the Campaign for Community Banking Services (CCBS) says: “There is urgent need for government to make it clear to this very profitable industry that cost-effective ways of serving less well-off and rural communities should be actively explored and that trialling the shared branching concept, used successfully elsewhere to provide a common counter service to customers of several institutions, would be a very good start.” Notes for Editors
Derek French, Hon Director CCBS Tel 01582 764760 |