Bank branches closing?

C3PM

Anyone know anything about bank branches closing? I ask because I was in my branch today and it almost seemed like they wanted to make the experience as unpleasant as possible. Maybe they want to drive customers away, and therefore give themselves an excuse to close the branch? Maybe branches aren't profitable for them any more, and they want to move everything online?

I can't make up my mind if this is a bad thing. I like going into the branch and speaking face to face with someone, but on the other hand I hate bank charges. So if it was a choice between, on the one hand, doing everything online and not having to pay charges any more and, on the other, keeping the ability to interact with human beings occasionally ... I'm not sure what I'd choose.

Anyone any thoughts?

368100

C3PM wrote: »

Anyone know anything about bank branches closing? I ask because I was in my branch today and it almost seemed like they wanted to make the experience as unpleasant as possible. Maybe they want to drive customers away, and therefore give themselves an excuse to close the branch? Maybe branches aren't profitable for them any more, and they want to move everything online?

I can't make up my mind if this is a bad thing. I like going into the branch and speaking face to face with someone, but on the other hand I hate bank charges. So if it was a choice between, on the one hand, doing everything online and not having to pay charges any more and, on the other, keeping the ability to interact with human beings occasionally ... I'm not sure what I'd choose.

Anyone any thoughts?

Branches are expensive to run. Bank fees for cash services at branch don't go anywhere near covering the cost of providing cash services so this part of a bank is lossmaking.
They make up for it on lending and non funds based Inome like insurance. This is why some banks have restricted cash services and branches are more aimed at providing advice (sales).
Of course with a decent online system servicing accounts is substantially less and card payments are increasing year on year with drops in cheque activity on the other side so many don't go to banks at all. Cash based businesses have gotten the brunt of all these changes with restrictions on cash services which is vital for running their business and some banks operate a no exceptions policy so no flexibility at all.

Geuze

Most of the closures have happened already.

AIB closed 67 I think.

ptsb closed 22.

UB closed branches.

BoI had a policy of not closing branches, but I'm sure some rural offices have shut.

cbreeze

BOI in Skerries declared they were staying put but reduced the ordinary customer cash service to mornings only. They have five or six people working there, and none are in the first flush of youth, so when they begin to leave I don't see replacements.

Atlantic Dawn

In fairness in the last 5 years I've probably visited a branch 5 times if even that, generally they are not required unless you have a business. If there's a branch within 20 miles of your home that you can get to on public transport that should be enough. If someone chooses to live with cash ony they can pay for it.

C3PM

Atlantic Dawn wrote: »

In fairness in the last 5 years I've probably visited a branch 5 times if even that, generally they are not required unless you have a business. If there's a branch within 20 miles of your home that you can get to on public transport that should be enough. If someone chooses to live with cash ony they can pay for it.

Thanks, I think that's spot on. I don't go into the branch very often any more and generally don't enjoy it much when I do. Like I say, they almost seem to be deliberately making the experience unpleasant. But what about the argument that bank branches are "the hub of any small town"? I'm not sure why they're any more important than (say) post offices but it's an argument I've heard time and again. If you close down the bank branch, the rest of the town's business will fold soon after, so they say. Is there any truth in that?

I think if I had to choose between free banking that didn't allow branch access or fees-based banking that did allow branch access I'd choose the former. But maybe I'd come to regret it?

Or what about free banking where you could visit the branch but fees were applied on (say) a quarterly basis every time you did so?

The only thing I'm sure about is that something needs to change.

C3PM

Geuze wrote: »

Most of the closures have happened already.

AIB closed 67 I think.

ptsb closed 22.

UB closed branches.

BoI had a policy of not closing branches, but I'm sure some rural offices have shut.

Yes, that's true. But AIB still have over 200 branches, with thousands of staff members. I wonder if that model is sustainable. Some people like to have face to face contact (I do too) but are those of us who don't have time to go into the branch every day subsidising those who do (through our fees and our extortionate mortgage rates)?

I suppose what I'm really asking is, who is paying for these branches, and is it worth it?

coylemj

C3PM wrote: »

But what about the argument that bank branches are "the hub of any small town"? I'm not sure why they're any more important than (say) post offices but it's an argument I've heard time and again. If you close down the bank branch, the rest of the town's business will fold soon after, so they say. Is there any truth in that?

I understand the point you're making and there's no doubt that a branch closing in a small town doesn't go down well with the locals as it's seen as a general 'downgrade' to the whole town, especially if it's the last remaining bank branch in the town.

But let me tell you of an experience I had a few years ago on a focus group discussing some new financial product...

We were in a room talking about banks in general (this is before the last crash) and one of the participants started to make the points that you are making i.e. that a bank is often the hub of activity in a local community and he said that he himself liked to go into his local branch of Bank of Ireland to have a chat with the staff but he was very sorry to hear that that branch (a Dublin suburb) was closing soon.

He was obviously a retired person and looked reasonably prosperous so I figured he probably had some savings and I asked him where he had his money on deposit - 'Northern Rock' says he!

So this guy expected Bank of Ireland to keep a suburban branch open for him as a social service while he had his money on deposit with a bank that not alone had no branches here but to my knowledge didn't even employ a single person in this country.