HSBC looks to reduce branch numbers
HSBC is coming under immense pressure after campaigners unearthed plans to close an additional 17 branches on top of the 37 which have been closed this year already. When you also consider the 31 closure last year and a confirmed 16 closures for January and February 2010, the HSBC local banking network is under pressure. Estimates suggest that around 100 branches will close between now and the end of 2010, which will reduce the costs associated with running the HSBC branch network system, but obvious leave many customers without easy access to banking facilities.
As ever, HSBC (along with all of the other UK banks closing branches) has suggested that those under threat have seen business levels reduce significantly over the last few years and are "no longer viable". This would seem to be the general opinion within the banking sector with regards to branches, although with the onset of online banking and telephone banking, in all honesty something had to give at some stage. However, it is the rural branches which will be hit hardest as many customers will need to travel miles to find an alternative branch if they need specialised banking services.
This reduction in UK bank branches is set to continue indefinitely as the Internet offers a more cost-effective and more viable alternative for many UK banking institutions.
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