HSBC has pledged not to close any more of its branches until at least 2026 as regulators and politicians ramp up efforts to ensure access to cash and in-person banking services.
The bank is due to tell its nearly 15m UK customers this week that it will extend a promise not to reduce its 327-strong branch network.
HSBC is also planning to invest £50m this year to refresh its branches.
UK lenders have closed more than 6,000 branches since 2015, according to consumer group Which?, as they look to cut operational costs and embrace the prevailing shift to online banking.
HSBC has closed 743 branches over this period, including 114 in 2023.
Which? has added that by the end of this year almost three million people will live in a parliamentary constituency without a branch.
Campaigners have warned that an estimated five million people, including the elderly and poorer customers, who favour in-person banking and have limited internet access are being disadvantaged.
Access to cash has also become a key issue for both major political parties. Last year, the government granted beefed-up powers to the Financial Conduct Authority (FCA) in the Financial Services and Markets Act to ensure people could continue to access physical money.
From 18 September, banks and building societies will have to assess whether closing local bank branches or ATMs leaves communities without adequate access to cash before making decisions, under new rules from the FCA.
Where significant gaps are found, banks will need to provide “reasonable additional cash services”, which could include banking hubs, ATMs and Post Office facilities. Lenders that do not abide by the rules could face unlimited fines.
“We know that our 327 branches play an important role in serving our customers,” Christopher Dean, HSBC’s head of UK customer channels, told The Mail on Sunday.
Labour has promised to open 350 banking hubs in towns and villages across Britain over the next five years as part of efforts “to breathe new life into Britain’s high streets”.
There are currently 68 banking hubs across the country, which let customers of multiple banks access in-person services and deposit and withdraw cash. Hubs are run by the Post Office in partnership with nine large high street banks, including HSBC.