Bank branch closures ‘disruptive for some’
ONE in three high street bank branches in the Bailiwick have closed in the past five years, leaving some of the island’s parish centres with no banks, and causing concern for some islanders.
Since 2017 five branches have closed, four from NatWest and one from HSBC, meaning the big four high street banks together have now just eight branches in the island, plus two in Alderney and one in Sark.
Four of these are in the centre of Town, with two branches on the Bridge and two in St Martin’s village.
Citizens Advice Guernsey chief executive officer Kerry Ciotti said bank closures had been very disruptive for some people.
‘I think the worry is that particularly for a certain section of society, perhaps the elderly and the people who don’t have a car and can’t get into Town easily, that they are now wide open to possible scams because their local branches have closed. Online banking is frightening for some people,’ she said.
‘And another point on the difficulty of accessing banks is that you can phone them but you don’t get put through to somebody here in Guernsey, and older people particularly worry about that.
‘The branches used to provide a personal service.
‘This is people’s money, it could be your life savings, so it can be worrying.’
Covid has accelerated the shift to digital banking and a cashless society, but even before the pandemic there was a clear direction of travel.
The big banks had claimed that customers were spurning traditional counter service in favour of banking online and via mobile phones.
However Mrs Ciotti said that did not include the people who might not have grown up with laptops and devices.
‘Online banking is very difficult.
‘I don’t find it particularly easy, I’m always worrying because we’re hearing about scams all the time.
‘Being able to pick up the phone and speak to someone quickly at your bank is not always possible, so it’s a crying shame and it’s leaving people vulnerable.
‘The worry is that this will happen more and more. When you go into your local bank branch there are fewer people there, they are discouraging you from using cheques and for a lot of people that’s what they rely on.
‘So it’s changing times which can leave people feeling a bit nervous and worried.’
Lloyds and HSBC both have three branches in Guernsey and one in Alderney.
HSBC closed its branch at Landes du Marche in 2018.
Barclays only has a presence in St Peter Port, while NatWest can be found in Town and Sark’s only bank branch is a HSBC.
NatWest has closed branches in St Peter’s, the Bridge, Cobo and Alderney in recent years.
‘With more and more of our customers choosing to manage their day-to-day banking with us online, our branches aren’t just places to deposit cheques or take out cash any more,’ said a bank spokesman.
‘Instead, they’re taking on a bigger role in our local high streets.
‘For our customers who need it, like those who don’t have internet access, they’ll still be places to manage money and speak to a real person face-to-face. And for all our customers, they’ll be local hubs to learn, listen and share ideas.’
The bank said it had nearly 1,200 Guernsey customers using digital channels at the end of last year. Nearly two-thirds of customers used online banking at least once a week and 85% every month. But just 7% of customers across its jurisdictions had visited a branch in the past week, 70% visited less than once a month, and 18% had not visited a branch in the past year.
Cuts to branches in Guernsey have actually been less severe than those seen in the UK, according to research from consumer body Which? It said that 4,735 branches had been shut or earmarked for closure over the past six years, equal to 48% of Britain’s banking network as it was in January 2015.
