Daily Management Review

HSBC to close a quarter of its UK branches


On November 30, the UK bank HSBC announced plans to close 114 out of 441 of its UK locations. Between April and August 2023, these branches will systematically stop operating. After that, the bank will only have 327 locations left in the entire nation.

The trend of banks closing their physical locations has been noted for many years. The main cause is the widespread use of internet banking, which reduces the number of people visiting physical branches. More than 150 branches have already been shuttered by HSBC in just 2021 and 2022.

The bank has decreased the number of branches by a total of two-thirds in the last five years. According to HSBC, users now do about 97% of all transactions and apply for credit cards, loans, and other products online. According to the bank, it is currently closing locations with less than 250 visits per week on average from customers.

The Financial Times claims that Ping An, a Chinese financial giant and HSBC's largest shareholder, is urging the bank to make more drastic cost reductions. On November 29, HSBC announced that Royal Bank of Canada would purchase its Canadian division for $10 billion.

source: ft.com