The UK banking landscape continues to shift dramatically as Lloyds, NatWest, Halifax, Santander, and the Bank of Scotland confirm plans to close 163 bank branches over the coming weeks and months — a move that spotlights how digital transformation, customer behaviour, and financial inclusion are reshaping public access to traditional banking.
What’s Happening
From September through to late 2025 and into early 2026, a wave of closures will affect branches across the country. Some banks are accelerating plans already in place, while others are announcing new branch shutdowns as part of a broader strategy to reduce physical footprint. †
The reasons cited are consistent: a steep decline in in-person branch transactions, the rise of online and mobile banking, and cost pressures — particularly real estate and staffing costs. For example, NatWest reports that over 80% of its current account holders now use digital services, while many routine banking tasks once done in-branch are now done via apps or online portals.
Which Regions Will Be Affected
The confirmed closures include a mix of urban, suburban, and rural branches — some in relatively well-populated areas, others in towns where the nearest alternative branch may now be many miles away. Among them:
- NatWest is shuttering dozens of its branches, including locations in towns across England and Wales.
- Halifax is closing multiple branches, with five confirmed closures in early 2026.
- Santander and Bank of Scotland also have sites earmarked for closure, including in more remote locations.
A full list is available from consumer reporting outlets — people are checking if their own local branch is on the list.
Impacts & Concerns
Accessibility and Inclusion
One of the most serious concerns is how these closures impact those less able to switch to online banking. Older people, those without reliable internet access, individuals with certain disabilities, or people in rural or underserved areas will feel the effects more acutely. With fewer branches, travelling longer distances, or relying on Post Offices and shared banking hubs becomes necessary — not always practical.
Loss of Human Interaction
Many customers still value face-to-face service for complex or sensitive matters — mortgages, financial advice, or issues such as fraud or identity verification. Banks closing branches often promise alternative channels, but critics argue these do not fully replace the trust and reassurance that comes from in-person banking.
Economic and Community Impact
Branch closures can also affect local economies. High streets may suffer when anchor services leave. Some smaller businesses rely on a nearby branch for cash deposits or withdrawals. The visible sign of loss can affect perceptions of community vitality.
Bank Responses & Mitigations
Banks acknowledge the challenges. They argue that maintaining under-used branches is increasingly uneconomic, and that most customers now use digital services for everyday banking. To mitigate negative effects, banks have proposed or are implementing:
- Increased partnerships with Post Office counters for basic services.
- Mobile banking units or banking buses in some areas.
- “Super ATMs” or more powerful machines for self-service where branches close.
- Ensuring customers have time to transition and that staff are redeployed where possible.
Consumer groups are pushing banks and regulators to ensure no one is left behind — especially given that a large portion of older people still do not use online banking regularly. †
Broader Trend & Policy Context
This wave of closures doesn’t stand alone. More than 6,400 bank branches have already closed across the UK since 2015, averaging around 50-60 per month. What’s happening now is an intensification of that trend.
Regulators and advocacy groups are increasingly concerned about what this means for access to cash, financial literacy, and the digital divide. Some policy proposals include:
- Mandating minimum levels of physical access in certain regions.
- Requiring banks to provide alternatives when branches close.
- Ensuring shared local banking hubs (often run in conjunction with Post Offices) are well supported.
What Should Customers Do?
If you think your local branch might be affected, here are a few steps:
- Check official closure lists published by your bank and consumer-watchdog sites.
- See which Post Office branches are nearby and if they offer the services you need.
- Ask your bank if they have mobile or outreach services in your area.
- Get comfortable with digital or telephone banking—but also be aware of your rights and what in-person alternatives should be available.
Conclusion
The planned closure of 163 bank branches in the UK over the upcoming months marks a significant shift in how people access financial services. While many customers have already adapted to digital banking, for others this will create real obstacles. The challenge will be to balance efficiency and cost savings with fairness and access — ensuring that no group, especially the elderly or digitally excluded, loses out in the transformation of the high street banking landscape.
