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STATEMENT |
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1 May 2008 |
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HSBC ACKNOWLEDGES THE SMALL BRANCH PROBLEM |
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During April, and after a small pilot exercise, HSBC changed the status of around 400 of its 1500 strong UK branch network to ‘Service Points’. These are small rural, and suburban, branches typically employing 2-4 staff with some opening less than a full 5 day working week and unable to provide all basic services. They have historically been neglected in investment terms and could be viewed as candidates for closure but are important, even more so today, for the stable retail deposits of their loyal customer base. In acknowledging the status quo with the new ‘Service Point’ categorisation (customers will see no change in signage), the bank is also withdrawing sales targets from the units and staff concerned, substituting service standards as a performance measure, and managing the units regionally from where relief staff will be supplied in case of need. Approximately half will get some new technology and modest refurbishments over the next two years. CCBS research indicates that most of the affected outlets will be in communities where HSBC is the only bank or has only one competitor but market share of available business is generally little higher than nationally. We welcome this move as a statement of intention to stay in the communities concerned for the time being but are disappointed that HSBC has not taken the initiative with the three other banks in a similar position to trial a neutral multi-bank service point as proposed by CCBS and which would obviously have a longer life on grounds of maximising footfall. Also the HSBC ‘solution’ is seemingly confirming a time warp situation in terms of branch location rather than adopting a formula for servicing new centres of population and does nothing for the numbers of deserving cases where HSBC has closed the ‘last bank in town’ in the last few years. Contact:
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