HSBC to Close 69 More Branches

March 2022

HSBC to Close 69 More Branches

HSBC will shutter a further 69 branch locations this year, citing a shift to digital services accelerated by the pandemic.

The bank said that fewer than half of its customers actively use its branch network, with average footfall in its high street locations falling by more than 50% since 2017.

HSBC already axed 82 branches in 2021. The recently announced closures, scheduled to take place between mid-July and early July, will take its branch network to 441 locations, down from nearly 600 at the beginning of 2021.

Just 96 of these remaining branches, largely concentrated in large cities and towns, will be full-service outlets with a comprehensive range of services including the ability to apply for mortgages and loans. An additional 172 locations will be cash service branches offering access to cash and basic counter services, with some provision for more complex banking tasks. 173 locations will exclusively offer self-service technology with no counters.

HSBC says none of the planned closures will impact the last in a town. Additionally, the lender pointed to alternative banking services available to consumers.

Jackie Uhi, head of HSBC UK's branch network, said: "Our branches continue to support people with their more complex banking needs, but the way we can do this has also evolved, with the addition of banking hubs, community pop ups and continued use of the Post Office network.

“We know that the majority of our customers have a preference to do much of their day-to-day banking online or via mobile, so we're removing locations where we have another branch nearby, and where there is a significant reduction in customers using face-to-face branch servicing,” she added.

HSBC says that all branches due to close are within 1.5 miles of a Post Office and that 90% have ten or more free-to-use ATMs within one mile.

Closing other branches will “enable us to invest in locations where our customers are continuing to utilise the branch network, including updating technology and refurbishing branches,” Uhi added.

Upgrades will include new integrated deposit and withdrawal cash machines in existing branches. HSBC will also host pop-up events at local libraries and community halls to allow customers to access more complex banking services and provide free tablet devices to some vulnerable customers.

The branches earmarked for closure span the UK, from Inverness in the Scottish Highlands to Falmouth in Cornwall. They also include HSBC outlets in high-profile London locations including in the City and at the Westfield Stratford City—offices areas and shopping districts where footfall has dropped as a result of work from home measures and increased reliance on online purchases.

The closures will also put more than 400 jobs at risk. HSBC said it hopes to deploy staff affected by the closures to other roles.

HSBC isn’t the only bank preparing to close branches this year. The Lloyds Banking Group will axe 48 Lloyds and Halifax branches by April, and TSB will retire 70 locations—a quarter of its network—by June. Virgin Money intends to shutter 31 storefronts, and the NatWest Group will scrap 21 NatWest and 11 Royal Bank of Scotland locations between May and July.

HSBC branches scheduled for closure

City of London: 19 July

Westfield Stratford City (London): 19 July

New Bond Street (London): 19 July

Cambridge, Hills Road: 21 July

Moorgate (London): 21 July

Angel Islington (London): 21 July

Gloucester Road (London): 26 July

Monmouth: 26 July

Perth: 26 July

Hammersmith: 28 July

Merry Hill: 28 July