High street giant HSBC to close 114 branches

(Image credit: © Matt Cardy/Getty Images)

published 30 November 2022

HSBC is closing 114 branches from next April as customers increasingly turn to digital banking. The closures will affect everyone from small businesses to the elderly and those who live in remote areas. See below for the full list of all the HSBC branches that are closing in 2023.

However, the bank said it will instead invest millions of pounds to update and improve its remaining 327 branches.

The news follows the announcement that HSBC will boost the interest rate on its regular savings account from 1% to 5% from 1 December – you can find all the details in our best regular savings accounts article.

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HSBC is also paying new customers £200 if you switch to them – and of course, if you’re already with HSBC and not happy, then other banks are also paying a switching bonus to move to them instead.

Here’s everything you need to know about HSBC’s branch closures.

Why is HSBC closing its branches?

HSBC said the use of the bank’s branch network has declined by 65% over the past five years, with some serving fewer than 250 customers a week.

Footfall has fallen by 50% in 74% of the closing branches. The decline in physical banking was further accelerated by the pandemic.

In contrast, 97.5% of transactions were completed digitally and there was a 250% increase in the number of digital payments over the last five years.

“People are changing the way they bank and footfall in many branches is at an all-time low, with no signs of it returning,” said Jackie Uhi, HSBC’s UK’s managing director of UK distribution. “Banking remotely is becoming the norm for the vast majority of us.”

Uhi acknowledged branches will “continue to play an important role in day-to-day banking” and added customers can access services through the Post Office networks, the bank’s community pop ups, live chat, social media, and through the phone.

We do not yet have the details of which branches are closing, but as soon as we do we will keep you posted. Sign up to our newsletter to get the latest news.

What do the closures mean for customers?

The announcement will “come as a blow to customers who rely on them – from small business customers looking to deposit their cash takings, to elderly customers who haven’t transitioned to online banking or simply prefer a human touch when it comes to personal banking,” said Myron Jobson, senior personal finance analyst at interactive investor.

“It is also bad news for those with mobility issues and those who live in remote areas should they require face-to-face banking.”

Online banking offers many opportunities, but the closure of physical branches will also make it harder for customers to take cash out should they need it. Additionally, the bank’s digital and telephone banking offerings could use some improvement.

“It’s unacceptable for bank customers to wait up to 30 minutes to speak to someone when it’s their only choice because their local branch has vanished,” said Tobias Gruber, founder and CEO of mycommunityfinance.co.uk. “There are no excuses to keep customers on hold, considering the vast amount of money banks generally save from closing their high street branches.

“Post Offices are one alternative for basic transactions like paying in cheques and cash, but this move by HSBC will undoubtedly leave even more rural customers that don’t wish or are unable to use the internet to do their banking frustrated, stuck and unable to access their money.”