The banking and finance industry are undoubtedly one of the booming industries among all, and if you have been following the business news, here we would be updating you about the closure of 82 branches of HSBC. Read on…
HSBC is saying that it is supposed to close 82 branches in the UK and it would address this incident between the months of April and September this year itself thereby claiming that the customers are turning to digital banking. The HSBC has reported that since the pandemic was on, and everything moved on to digitalization with the growing popularity of the Work From Home or WFH culture, the branches are now about to shut down. Since more and more people are accessing digital banking these days, why would the company still invest on branch banking? Branch banking which has been in practice since years are now going obsolete and thus, this would add on to become an investment for the company as a whole.
The company will have 511 branches across the nation, thereby following the closure programme. Even the managers had said that they could not expect to make any redundancies with the staff had moved to the nearby branches. The coronavirus and the changing habits of the customer have altered the way we have been banking so far. However, there are a lot of concerns over all sorts of closures. The campaigners say that the local branches offer a lifeline got all the people who need access to the cash and face-to-face services. They even allow the small businesses to bank without much disruption to their own trade.
HSBC said that one of the branches earmarked for the closure and they have been within one mile of a Post Office in which the day to day transactions will be carried out. It even said about the stripping out of the effects of the pandemic. The number of customers who have been using the branches have actually fallen by a third in the last 5 years and around 90 percent of all the customer contact was done over the phone, smartphone or internet in addition to the contacts on the social media. HSBC UK’e head of the network, Jackie Uhi said, “The Covid-19 pandemic has emphasised the need for the changes that we are making. It hasn’t pushed us in a different direction but reinforces the things that we were focusing on before and has crystallised our thinking. This is a strategic direction that we need to take to have a branch network fit for the future.”
This will further indulge an alteration of the same branches to focus on the cash access, and also on the use of “pop-up” branches at the end of the year. It further mentions that the remaining branches shall be offering fewer services.