73% of 18-24 year olds would miss their high street bank branch if it closed, the highest proportion of any age group, according to new research from KPMG UK*. Overall, more than two thirds of UK adults said they would miss having a local bank branch.
Depositing cash (40%) was the top reason why 18-24 year olds last visited a bank branch. This was followed by 24% using the branch to discuss personal finances with a bank manager – the highest of all age groups. Almost a quarter (23%) last visited the branch to withdraw cash.
Younger individuals were also the most likely to have visited a bank branch in the last month. For example, a quarter (25%) of 18–24-year-olds stated they had visited a bank branch in the last month, the highest of any age group and up from a fifth (20%) last year. In total, 70% of UK individuals have visited a bank branch in the last year.
With an increasing number of individuals having transitioned to using online banking, many UK individuals are visiting their local bank branches less often and less frequently. Just 12% of respondents had visited a bank branch in the last week. Similarly, just over a fifth (22%) of UK individuals had visited a bank branch in the last month.
Peter Rothwell, Partner and head of banking at KPMG UK, said:
“Our survey suggest that it’s a myth that bank branches are just the domain of their older customers. Younger individuals value the ability to walk into their nearest high street branch, talk to a real person and use the services on offer.
“The continued cost of living struggles makes the need for in-person advice and the ability to access cash – a timeless budgeting tool - all the more important.
“We know that Banks recognise the importance of having access to a bank branch and are seeking to manage their branch networks sensitively while managing costs. The ongoing transition to more digital banking is desirable for most but bricks and mortar bank branches are still a vital way for people to manage their personal finances.”
Banking hubs are becoming more well known, but people still aren’t using them
Just over half of Brits (51%) polled said that they had previously heard of a ‘Bank Hub’ – a shared spaces on the high street letting customers of multiple banks deposit and withdraw cash and perform other everyday banking tasks – up from 38% last year.
Awareness about what a bank hub is varies depending on age. 18–24-year-olds (52%) and 25–34-year-olds (54%) were the two most likely age categories not to have heard of a bank hub compared with just 23% of over 65s.
Yet while more Brits are becoming familiar with what a banking hub is, 77% of Brits have never visited one. The top reasons why individuals claimed to have not visited one include: not needing to visit one (44%), there being no local bank hubs close by (37%) and doing banking online (31%).
Peter added: “It’s encouraging that the concept of banking hubs is becoming more well-known even if their rollout has so far been fairly muted, with only a limited number of hubs open today. As more banking hubs open across the UK it will raise awareness and they’ll likely become more popular as they open in areas which have experienced significant bank branch closures.”
