Welcome to the new and improved ‘Banking Headlines’ – The Current Account! We hope you enjoy our latest round-up of the top news from the industry in March.
Headlines from the banking sector this month
Following the profitable year-end reports, a number of banks are now looking to the year ahead to deliver on their strategy. This month we focus on an area that has been prevalent in the headlines for several years now – branch closures. And as the cost of living continues to hit, we look at the impact of the central bank’s interest rate hike.
Phasing out the Bank Branch
- A survey this month indicated that a number of European banks believe physical branches could be phased out by 2025
- Banks are benefiting from the shift in demand to digital, with fast processing and AI enabling improved customer experience at a much lower cost
- In the UK, both HSBC and LBG announced further branch closures in March, adding to the almost half of total UK branches already closed since 2015
- HSBC have followed the closures announcement by branching out into the metaverse to engage with customers in new ways
- Firms should show some caution when transitioning to innovative ways to improve CX so as to ensure they continue to deliver a service to suit all customers, as Santander found out when forcing customers to use mobile phones