Yorkshire has least bank branches left per person, Which? research reveals

Yorkshire and the Humber is the region with the worst ratio of bank branches to population in the UK, Which? research has found. 

The region now has just 248 branches left to serve a population of 5.6 million people. This equates to 4.4 branches per 100,000 people, leaving every Yorkshire resident sharing their branch with 22,557 others. In January 2015, Yorkshire and the Humber had 728 open branches, equivalent to 13 branches per 100,000 people. Since then two thirds of the number of branches (480) have closed. 

The issue of bank branch access has been a steadily worsening one in the last decade across all regions of the UK. While Scotland has the ‘best’ access to branches, at 6.9 per 100,000 people, its population is spread unevenly across the country and those living in more rural areas still face long journeys to use a bank. Faring slightly better is the West Midlands region, with six branches per 100,000 people.  

The East Midlands region, however, has the second worst access to banks per population, with just 4.6 branches per 100,000 people. 

Which? research has found that 6,161 bank branches have been shuttered across the country since 2015, which represents over three-fifths (62%) of the entire banking network. The impact on local communities can be devastating, with some of the most vulnerable members of society, such as those living with disabilities or on lower incomes, reliant on branches and either unable or unwilling to make the switch to banking digitally.

The South East is the region that has lost the most branches, with 856 closures, followed by London with 804 closures. However, these regions had more branches serving larger populations. The South East for example had 1,376 open branches in January 2015.

In Yorkshire and the Humber, Barclays has closed the most branches (92) since January 2015, followed by HSBC (73) and NatWest (69). Halifax, which was founded in the county, has kept the largest presence of any bank in the area, with 43 operational branches, followed by Lloyds (32). Both banks are members of the Lloyds Banking Group. 

Yorkshire and the Humber has nine parliamentary constituencies without a bank branch: Barnsley South, Bradford South, Colne Valley, Doncaster East and the Isle of Axholme, Ossett and Denby Dale, Penistone and Stocksbridge, Rawmarsh and Conisbrough, Sheffield Hallam and York Outer. The region also has six constituencies with just one branch left: Bradford East, Brigg and Immingham, Calder Valley, Normanton and Hemsworth, Sheffield Heeley and Spen Valley. 

Across the UK, there are 30 parliamentary constituencies - totalling just over three million people - without a single bank branch, while another 56 are left with only one branch remaining. 

Which? has led the campaign to protect free access to cash for those who still want to use it. Last week, new rules, overseen by the financial regulator the Financial Conduct Authority (FCA), came into effect. These rules mean that banks will need to give greater consideration to a local community’s cash needs before deciding to close a branch. Specifically, the watchdog will require firms to check whether additional services would be needed should a branch shut its doors or an ATM be switched off - and keep facilities open until the additional cash services are available. 

New FCA rules will also give local residents more say over what their community’s cash needs are. Community groups can request an assessment of whether there are gaps in local cash access and banks will be obliged to respond to these. Where significant gaps are found, providers will have to deliver reasonable additional cash services.

Additional cash services may be shared banking hubs, which are premises shared between several banks. Shared hubs are one solution to fill the gaps left by shuttered branches, however Which? is concerned that the pace of the rollout is much too slow for consumers to feel the benefits. Just 81 hubs are currently open out of 163 recommended by LINK, which oversees the country’s ATM network.

In Yorkshire and the Humber alone, 21 have been recommended, but just nine have opened. Given the number of branches that have closed in recent years, the consumer champion wants to see many more hubs opened across the country. Major banks have recently committed to opening 350 by 2029, which would mean significantly increasing the pace of the rollout. Which? wants the government to hold banks’ feet to the fire to ensure they make good on this commitment and revise the target upwards if necessary. 

Sam Richardson, Deputy Editor of Which? Money, said: 

“Bank branch closures can have severe impacts on local communities including on those who still want to use cash. New rules to protect free access to cash have been hard won and should make banks think twice about shutting branches without adequate replacements. 

“While Yorkshire and the Humber may hold the dubious record for the worst branch access, this is a nationwide problem. Banking hubs will play a key role in replacing shuttered branches, but their rollout remains far too slow for consumers to feel their benefits. 

“The government must hold banks’ feet to the fire to ensure the commitments they’ve made to set up 350 hubs by 2029 are met - and should be prepared to review the target upwards if necessary.”

-ENDS- 

Notes to Editors

LINK - Request access to cash

All figures are correct as of 23 September 2024

About Which?

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