What's happened
The trend of bank branch closures has intensified, particularly affecting lower-income and minority communities. Major banks like Lloyds and RBS are shuttering hundreds of locations, raising concerns about access to essential banking services. This shift towards digital banking is leaving many without vital face-to-face support.
Why it matters
What the papers say
According to Axios, the pandemic has accelerated bank branch closures, particularly affecting communities with high concentrations of lower-income residents. A study from the Philadelphia Fed highlighted that majority-Black communities saw a 10.1% increase in banking deserts. Metro reported that Lloyds Banking Group plans to close 292 branches, citing a shift to online banking as only 8% of customers use high street branches. The Scotsman noted that RBS, TSB, and Bank of Scotland will close around 50 branches by 2025, emphasizing the need for community banking support as digital banking becomes more prevalent.
How we got here
The rise of mobile banking and cost-cutting measures post-Great Recession initiated a wave of bank branch closures. The COVID-19 pandemic further accelerated this trend, disproportionately impacting communities reliant on in-person banking services.
Common question
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Why Are Banks Closing Branches So Quickly and What Does It Mean for Communities?
The rapid closure of bank branches across the nation has raised significant concerns, particularly for lower-income and minority communities. As major banks like Lloyds and RBS shutter hundreds of locations, many are left wondering how this shift to digital banking will impact their access to essential services. Below, we explore the implications of this trend and what alternatives are available for those affected.
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