Barclays starts U-turn on mass closures with three new branches opening soon

Barclays Bank has announced plans to open three new branches in England this year. 

The High Street banking giant said it would open new branches in Bishop's Stortford and Poole later this month, while a branch in Beverley will open in November. 

Three branches may seem insignificant, but the openings mark the start of a reversal of Barclays' mass bank branch closures. 

It comes after rival Nationwide Building Society's chief executive Debbie Crosbie told This is Money in July that the building society may open more branches in areas where there was a 'need'. 

In November, Nationwide extended its pledge to keep its entire branch network open until at least 2030.

Nationwide says its strategy of keeping branches open is paying off, as customers like in-person banking and in many areas it is the last branch in town. 

Barclays says it will 'continue to consider opportunities to open further branches'

Barclays said it was also continuing with the rollout of its new premier banking 'suites'. 

The move makes Barclays the first major bank in a decade to open new branches.  

A spokesman for Barclays told This is Money that the bank would 'continue to consider opportunities to open further branches in locations where we believe they could make a meaningful difference for customers'.

The spokesman added: 'We have no further locations or timings to announce at this stage but will share more details as plans are confirmed.' 

Barclays said it previously had branches in Bishop's Stortford, Poole and Beverley until 2024 but shut them as part of previous branch closure schemes. 

The bank's spokesman said: 'We keep our physical footprint under review, adapting it in line with changing customer behaviour and balancing in-person services with growing demand for digital banking.

'These openings reflect that approach by investing in modern spaces, improved self-service technology and face-to-face support where we see a clear customer need.' 

Barclays said it chose to open new branches in Bishop's Stortford, Poole and Beverley after analysing 'many points of data and insight'. 

The branch openings are part of a pledge by Vim Maru, chief executive of Barclays UK, to return to towns and cities. 

Maru said: 'We are back on the high street, in the communities … this is the first large bank that’s opened a branch in about a decade.'

There will be about six staff members in each new branch. The branches will be aimed at helping people with their finances rather than simply offering a conventional counter service, the bank said. 

Do Barclays bosses think closures went too far?

According to consumer group Which?, banks and building societies have shut 6,871 branches since January 2015. This equates to about 53 a month and about 69 per cent of branches open at the start of 2015. 

Banks typically said the decline in branch numbers was driven by a rapid increase in online and mobile banking, and a marked decline in the use of physical branches.  

Barclays closed about 80 per cent of its branches since 2019.  Which? said it was the individual bank that had cut its branch network the most, with 1,236 branches now closed. Which? said Barclays closed 182 branches in 2022 alone. 

NatWest shut the second largest number of branches since January 2015, at 1,038, Which? said.  

Barclays told This is Money it currently has more than 200 full-service branches in major towns and cities across the UK.

When asked if the lender's branch closures had been too big and too rapid, its spokeswoman said: 'We regularly review our branch network to reflect changing customer needs.

'As patterns of where people live, work and shop evolve, we continue to invest in our branches, contact centres and app to ensure customers can access support in the way that suits them best.' 

Nationwide has vowed to keep all its 696 branches open under a promise guaranteed until 2030, including Virgin Money ones it now operates after completing a takeover in April. 

Nationwide told This is Money in July: 'With many competitors continuing to close branches, we are starting to consider new locations where there is a clear customer need.

'While this is very much a starting point, any new branch would need to be supported by sustainable, long-term demand so it can continue serving its community for years to come.'

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