Some of the biggest traditional banks have shut more than one in three of their UK branches over the past five years as they turn away from the high street and dash to bulk up their digital offerings.
Data from the Office of National Statistics (ONS) shows the number of bank, credit union and building society branches in the UK tumbled from 10,410 in 2019 to 6,870 in 2024, a 34 per cent decline.
The number of branches closing their doors has continued to grow steadily in 2025, with Natwest, Halifax, Lloyds and Bank of Scotland set to close 113 branches before the end of November.
In March, Santander said it would close 94 of its 444 branches in the UK, with 14 sites shuttering this month alone.
Nationwide is one of the only traditional lenders not to carry out closures, promising to keep the doors of its branches open until at least the start of 2028.
UK banks close faster than EU peers
The UK is among the European countries that have closed the most bank branches, according to figures from management consultancy Kearney.
Only Spain and the Netherlands have shut more branches than the UK, losing 37 per cent and 48 per cent of their physical branches respectively over five years.
The sweeping closures come as more customers opt to bank online.
In the years 2020 to 2024, the number of customers using digital methods to access banking products rose from 33 per cent to 59 per cent, as going online rather than in a branch became a more favourable choice.
Sameer Pethe, a partner at Kearney, told the Financial Times, “This isn’t simply about doors closing or cost cutting.”
“It’s a clear signal that high street banks are reshaping their operating models, doubling down on digital as online becomes second nature for most customers.”
Fighting off fintechs
Traditional banks have been scrambling to retain customers and keep pace with fintech challengers in recent years, such as Monzo, Chase and Revolut.
Peter Tyler, director of personal banking at UK Finance said, “The way that we bank has been changing for some time, with a shift to digital services which is driven by customer demand.”
“That has led to a reduction in footfall in branches.”
However, the increasing number of closures has caused customer backlash, with many worried they will no longer be able to withdraw or deposit cash, with elderly and vulnerable account holders most likely to be impacted.
In efforts to dampen this fear, ministers in the last government brought in the Access to Cash legislation to prevent towns and villages across the UK from becoming “banking deserts”.
Last year, the FCA said banks and building societies must assess local cash access and provide alternative services where gaps in the network are spotted.
In response to this pressure, the sector created “banking hubs” allowing customers at major lenders to carry out cash transactions.
In 2024, banks agreed to set up 350 hubs on UK high streets by 2029, andthese will be operated by the Post Office, with 179 already open.