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Bank branch closures: A growing concern for small towns in the UK

Li Jianhua in Haverfordwest, Wales

02:28

As you stroll down the high street of Haverfordwest, a small town in western Wales, you may notice a quieter atmosphere than in years past. This is partly due to the development of retail parks outside the town center, drawing foot traffic away from the once-bustling business hub.

As footfall declined and business activities slowed, Barclays, which had served Haverfordwest for over six decades, decided to close its high street branch. This closure, part of a broader shift towards online banking, occurred about six months ago. While residents are adapting, the closure still leaves mixed feelings.

For many, particularly the older generation, the shift to digital banking is a challenge. 

"That had quite a significant impact on particularly the older generation who don't necessarily do online banking," says Thomas Tudor, County Councillor for Haverfordwest's Castle ward. 

"But I also think they [banks] have a social responsibility to the people they serve. It's not always about profits; it's about providing a service that engages with the population."

 

The alternative

The alternative for Haverfordwest residents is a service desk at the County Hall, open for five and a half hours on three days a week, though without counter or cash services.

Despite the inconvenience, Don Evans, a regular Barclays customer for over 60 years, remains understanding. 

"People are very disappointed with the fact that the Barclays Bank branch in Haverfordwest is closed," he says. "But I have to accept the way forward. The hub at County Hall is a good way forward. From my experience, having been recently, I can't complain about the customer relationship."

The reduced service at Haverfordwest's County Hall. /CGTN
The reduced service at Haverfordwest's County Hall. /CGTN

The reduced service at Haverfordwest's County Hall. /CGTN

However, the underlying sentiment is clear: many residents are still grappling with this shift. Councillor Tudor emphasizes that the closure has left many without the option of in-person banking. 

"If the hub is closed at County Hall, you will have to go to another town, possibly Carmarthen – even further, Swansea," he says. "It's a crying shame."

 

Bank closures across the UK: A growing trend

The Barclays branch closure in Haverfordwest is part of a much larger trend. Nearly 200 UK bank branch closures are expected between January 2025 and March 2026, as banks scale back their physical presence in favour of digital services.

According to the consumer group Which?, banks and building societies have already closed over 6,000 branches since January 2015 - at an average of 53 per month. 

The move towards digital banking has faced criticism, with many arguing that it overlooks the needs of older, less tech-savvy individuals. Ron Delveno, Chair of the Payment Choice Alliance, said the situation is particularly pressing for vulnerable groups. 

"There are nearly 30 million people in the UK over 65, more than a quarter of the adult population," Delveno tells CGTN. "For these people, bank branches are something they expect in their community, and now most communities don't have a bank branch."

 

Challenges of digital banking: Access and adaptation

Delveno stressed that the rapid shift to digital banking presents real challenges for certain segments of the population. 

"Over 8 million people don't have smartphones or computers at home," he notes. "If you move everything online, you abandon those people. Apps and online services only work if you have the technology - and even then, can you use it? 

Haverfordwest. /CGTN
Haverfordwest. /CGTN

Haverfordwest. /CGTN

"There are 60 million people in the UK who are disabled in some way, many of them cannot use technology in the same way that people who are fortunate enough to be fully active can do."

The closure of physical branches has also proven difficult for small businesses. 

"For small businesses, where they want to deposit cash, it's very difficult now," says Delveno. "They can, in some cases, deposit money at post offices, but if they want to go to their own bank branch, it can be a massive road trip, and that takes time. Time is money for businesses, and that's causing a problem."

 

Government response: A promise of banking hubs

To mitigate these challenges, the UK government has promised to establish 350 banking hubs by 2029. These hubs are intended to provide a physical presence for banking services in areas where branches have closed.

However, critics argue that the proposed number of hubs is insufficient. 

"We need at least 1,200 of these banking hubs, and they need to have 24/7 ATMs that dispense and accept cash deposits," says Delveno. "Those are the kind of things we need to happen."

As digital banking continues to grow, towns like Haverfordwest will need to adapt to this evolving financial landscape. The rise of online services offers convenience for many, but it raises serious concerns for those who struggle with technology or rely on in-person banking services.

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