High Street Bank Decline?
Banks are considering their response to a take up in mobile phone applications and internet banking which is greater than that anticipated.
Figures from 2018 show that 48% of UK adults used mobile banking applications and more than 65% used online banking.
The analysis undertaken by the consultancy CACI predicts that 71% of bank customers will use mobile applications by 2024 and that as many as 45% of bank consumers will no longer bank in branches.
This may further impact on the number of bank branches currently open. Britain’s banks have closed more than two thirds of their branches in the last 30 years. A ‘Which?’ report confirmed that bank branches declined from 20,500 in 1988 to less than 7600 by the end of 2018.
This trend will force UK banks to consider the expense of maintaining physical branches against the decline in their use.
Many ‘Start Up’ banks which are now gaining market share offer a full range of banking facilities but don’t operate branch offices.
A concern was recently raised by consumer magazine ‘Which?’ that older customers or the less computer literate in the population may lose out as a result of the trend towards no branch banking!
This entry was posted on July 9, 2019