At 31-12-2010 only 9737 retail bank branches remained, down 181. The traditional Big 4 banks (Big 3 in Scotland) operate the only bank branches in 97% of rural and suburban communities which are dependent on only one bank.

From a low in 2007, something has changed and net branch closures by the traditional Big 4, at 183 in 2010, are again rising significantly with an emphasis on urban and rural communities down to their last one or two banks. Cuts in opening days/hours, often a precursor to closure, have also been a feature.

With higher capital costs and retail profits under pressure, branch closures in vulnerable communities are continuing in 2011 at a similar rate with no sign of a halt.

Neutral shared branching offers a cost effective way to sustain a branch presence in vulnerable communities, and elsewhere to significantly reduce operating costs, but to date the industry and governments have consistently failed to recognise the opportunities it affords.

The new player, Santander, is town centre focused and its network contains multiple overlaps crying out for rationalisations. This profile will not change materially when the RBS network in England & Wales (311) is taken over in 2012. New entrants to retail banking will not fill the closure voids in vulnerable communities.