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 for vulnerable populations.
Why it matters
What the papers say
According to Axios, the pandemic has accelerated bank branch closures, particularly in communities with high concentrations of lower-income and minority residents. A study from the Philadelphia Fed highlighted that majority-Black communities saw a 10.1% increase in banking deserts, compared to a national average of 6.4%. Meanwhile, Metro reported that Lloyds Banking Group plans to close 292 branches, affecting Halifax and Bank of Scotland, with only 8% of customers visiting branches regularly. The Scotsman noted that RBS, TSB, and Bank of Scotland will close around 50 branches by 2025, emphasizing the shift towards mobile banking. These closures raise concerns about access to cash and face-to-face services, particularly for vulnerable populations.
How we got here
The shift towards online banking and cost-cutting measures post-pandemic has led to a significant increase in bank branch closures. Communities with high concentrations of lower-income and minority residents are disproportionately affected.
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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