Closure of bank branches leaves many older people financially adrift….

This week sees another round of branch closures, and our CEO, Dan Skipper, spoke with the Radio Norfolk Breakfast show who were headlining this issue this morning (17/04/23) with many callers contacting the show about how these closures were impacting them.

An average of 54 branches have closed each month since January 2015, with 736 in total shutting for business during 2021, according to Which? NatWest is planning to close 23 more high street branches in addition to 43 closures that have already been planned.

Dan said “There are many factors in play in Norfolk that mean people cannot just travel to another branch or go online, and this assumption is not inclusive of an ageing population.

Norfolk has one of the oldest age profiles in the country and frailty is a significant county issue. You may not have the physical mobility to travel, even if you actually have transport options where you live, which we know is not universal. There is also the affordability of transport, which people may not be able to justify in the current cost of living crisis. It also overlooks people with caring responsibilities, where the health of their loved one may make the trip unviable.”

This is not just exclusive to older people with research by accountancy firm KPMG suggesting that the cost of living crisis has resulted in more customers wishing to discuss money worries face to face with a member of staff.  Many people feel they have been cut adrift and left struggling to access basic banking services at a time when money worries are rife, plus this is another blow to the vibrancy of the high-street.

Mr Skipper continued “Although many older people use online banking, significant numbers are unable or unwilling to manage their finances online. Some live in areas of poor broadband connection or do not have the appropriate devices – or the money to buy them.

It’s not just the actual banking site or app, it involves email accounts, smart phones for multi-factor authentication, ATM’s that people may not have the capacity to use. Not being confident with technology increases concern about scams, of which you are more at risk of as you get older. It also removes another reason to visit your community and the physical and social health benefits this provides, fuelling issues such as loneliness.”

A review by the British Bankers Association found banks are not doing enough to support older customers in the face of widespread branch closures.

Age UK is calling for improvements to the new Financial Services and Markets Bill to protect older customers, many of whom rely on face-to-face banking. While the Bill includes specific safeguards for depositing and withdrawing cash, the charity wants assurance that other banking activities such as starting bereavement procedures, arranging third-party access and opening a new account – all services available in-branch – have the potential to be protected in future.

The charity is  also asking for local banks to act responsibly and consider vulnerable customers and their role in the community, which include:  

• A branch closure impact statement (these are obligatory under the BBA Branch Closure Protocols) and analysis for of customers who will be impacted.
• Proactive, personalised arrangements for each of its stranded customers, in terms of helping them move to ‘suitable alternative services’. Where this involves digital migration, to ensure local, face-to-face support is in place.
• A post-closure assessment – i.e., to find out in the months after a closure how their stranded customers have adapted and what lessons can be learned from the post-closure experience.

For residents who are impacted by a branch closure:  

• Find out if there is another bank in your community and consider switching account. Visit https://www.uswitch.com/current-accounts/ or speak to the staff in branch.
• Look for other banking options, such as The Post Office, Credit Unions, or telephone options.
• Contact your bank to see what transitional support they have available. This could include digital training. Your district council may also have local support schemes in place through a wide variety of charities and organisations. https://www.norwich.gov.uk/info/20249/digital_support