HSBC to close 62 more branches due to rise of online banking

HSBC is planning on shutting another 62 branches, in addition to its previously planned 55 closures, this year due to the rise in customers using online banking.

The move is expected to lead to 180 redundancies in branches and 204 in IT positions.

Consumer group Which? pointed to HSBC as the bank with the most branch closures in 2015 and 2016.

After adding up the 223 branches cut last year, the bank will be left with 625 branches by the end of this year, less than half its high street presence in June 2011 when it had 1,301 branches.

"Fewer people are using branches. More than 90% of our interactions with customers are now through our digital channels - an increase from 80% last year," said Francesca McDonagh, HSBC's head of retail banking.

"The decision to close these branches ensures a more sustainable branch network for the future as we continue to invest in our digital platforms and our people.

"We will have fewer but better branches, with more empowered front-line colleagues using a greater range of technology to support all our customers' needs."

Over 90% of customer contacts were made through digital channels, which is an 80% rise from last year according to the bank.

The bank says this marks the end of its closure programme under which 340 branches will have been shut since the start of 2015 after chief executive Stuart Gulliver pledged to streamline the bank and cut 25,000 jobs globally.

António Simões, head of HSBC’s UK banking arm, said: “This marks the end of our branch restructuring programme. We now feel we have the right branch network that complements the other ways in which customers now choose to interact with us. We will continue to invest for the benefit of our customers as we build HSBC UK, a better bank for our people and customers.”

An alternative to high street banks has however come up through a deal the Post Office reached with the banking sector to make its 11,600 outlets available to more bank customers in what it calls “the biggest expansion in face-to-face banking access in a generation”.

“By making sure alternative counter-based banking services are accessible through the Post Office, the impact of local branch closures on communities can be minimised,” the Post Office said.

Branches in London, Bristol and Manchester come under the list of cities facing closures.

The share price rose by 0.46% to 673.11p at the close on Tuesday.