Dozens of bank branches in Wales have closed in the last three years, with more closures anticipated in 2025. A recent review highlighted that 84 bank branches shut down in Wales before the start of 2025, and several more closures were expected in the following months. According to data, Powys has been the most affected area, with 11 bank closures, while Caerphilly and Monmouthshire lost eight branches each, and Cardiff saw seven closures.
The trend of bank closures is not unique to Wales, as the whole of the UK has experienced a significant decline in the number of bank branches. The Link initiative, established in 2022 to safeguard access to cash on the high street, has seen over 1,600 bank closures across the UK, with more than 100 scheduled for closure this year. Over 35 bank branches are set to close by the end of January, with approximately 120 major bank branches either already closed or scheduled for closure in 2025.
The impact of these closures is widespread, affecting both urban and rural communities. Age UK has expressed concerns about the impact on elderly customers who rely on traditional banking services. The charity highlighted that the disappearance of face-to-face banking could exclude millions of older people who are not comfortable with online banking, risking their financial independence.
In response to the closures, initiatives like shared banking hubs and free ATMs have been introduced to support communities left without local bank branches. As digital banking gains popularity, physical branches are increasingly being replaced by online services. However, it is crucial to ensure that access to cash remains available for the approximately five million people who still rely on it.
Efforts are being made to mitigate the effects of bank closures, with organisations like Cash Access UK opening banking hubs across the UK. These hubs provide customers with a central location to carry out basic banking services, irrespective of their bank provider. The move towards shared banking hubs aims to address the growing need for accessible banking services following the closure of numerous branches.
As the banking landscape continues to evolve, it is essential to strike a balance between the convenience of digital banking and the necessity of physical branches for certain demographics. The ongoing closures signal a shift towards a more digital banking experience, emphasising the importance of alternative solutions to ensure financial inclusivity for all members of society.