 is to close an additional 62 branches potentially affecting around 400 jobs, the bank announced on Tuesday.){kind=link}
HSBC (LON:HSBA) is to close an additional 62 branches, the bank announced on Tuesday.
This comes amid plans to already close 55 branches in 2017, as it look towards cost-saving and welcoming online banking developments in recent years. An increase in online services has meant that the bank has witnessed a 40 percent drop in customers to branches in recent years.
The move would take the bank branch number down to 625 UK sites, with the Post Office looking to acquire the additional locations as they look to expand their services. The Post Office has agreed with the bank to offer customers access to over-the-counter services in light of the closures. The Post Office will now provide cash, cheque and debit services for customers of HSBC and as well as other major banks and smaller lenders.
We now feel we have the right branch network that complements the other ways in which customers now choose to interact with us,” said Antonio Simoes, head of UK and European operations.
HSBC have been found to have initiated the most closures of any other high-street bank according to consumer rights group Which?. Its research revealed that the bank closed 321 locations since January 2015, comprising 27 percent of its total branches.
Whilst some customers were concerned about the announcement and the loss of crucial banking services, the Post Office commented:
“By making sure alternative counter-based banking services are accessible through the Post Office, the impact of local branch closures on communities can be minimised,”
“The Post Office plays an important part in financial inclusion. It is the most accessible place for handling financial transactions, particularly in remote areas – ensuring customers have the opportunity to access cash and basic banking services whenever and wherever they need, providing a vital stimulus for local businesses.” They added.
This follows a disappointing set of final quarter profits for the UK division of the Spanish Bank Santander causing shares to tumble (LON:BNC), as the banking industry continuing to be affected by Brexit uncertainty and currency movements.
Shares in HSBC remained steady amid the news, with shares up by 0.73 percent in early Wednesday morning trading as of 9.44AM (GMT).