6 August 2010

NEW BANKS AND BRANCH SALES

In the light of extensive media interest in the establishment of new banks (such as Metro, Virgin and several others in the pipeline) as well as the agreed sale of the RBS English branches to Santander, CCBS wants to put the record straight that these moves offer no salvation for vulnerable communities which are continuing to lose their only bank(s).

Derek French, CCBS Director, says:

"These new players will go for the sales opportunity of high footfall urban sites to pay back their big investment but their presence in the market will exert competitive pressure on the traditional banks to reduce costs which will further endanger the survival of smaller branches."

With HSBC currently active in closing branches where it is ‘last bank in town’ and NatWest savagely cutting opening hours in smaller branches, now is the time for the UK retail banks to seriously consider neutral shared branching as a cost-effective way of maintaining service to local communities.

ENDS

Contact: Derek French  Director  01582 764760
Website: www.communitybanking.org.uk

Notes to Editors:

1. CCBS is a coalition of 22 national organisations concerned about branch closures, community sustainability, financial exclusion and carbon reduction.
2. The traditional Big 4 banks operate the only branch in 95% of the rural and urban communities where only one bank remains.
3. CCBS’ shared branching proposition is contained in ‘Bank Closure Problems – One Solution Fits All’ downloadable from www.communitybanking.org.uk/reports.htm
4. Metro bank opened its first branch in London’s Holborn on 29 July 2010 and plans to have 200 within the M25 by 2020.
5. Virgin plans 70 branches in 5 years.
6. HSBC closed 75 branches in 2009 and in 2010 by September will have closed 37 of which 24 are ‘last bank’ or leave another bank in that situation.
7. NatWest has savagely reduced opening days/hours at small town branches in Mid Wales and is understood to be rolling out the exercise.
8. The RBS branch network in England & Wales is being sold to Santander. The network is North West skewed, the region where most of the 31 RBS ‘last bank’ locations are sited.