Banks closing due to online banking
April 3, 2008
According to one banking official in the UK the popularity of Internet banking is now having a profound impact on high street banks, and is resulting in branch closures and job losses. As the popularity of Internet banking continues to grow throughout the UK it seems as though more and more high street banks and branches could be affected, as many are losing business hand over fist to their online counterparts, as consumers with busy lifestyles carry out their banking transactions from the comfort and privacy of their own homes at a time that suits them.
Officials from C&G have announced that there will be thirty one branch closures across the UK, and that as a result of this over three hundred jobs will be lost. There are nearly two hundred C&G branches in the UK and the number of closures therefore reflects a fairly large proportion of the total number of branches. According to one official from C&G far fewer people are now using the branches to conduct banking business because of the availability of Internet banking, and this has led to decreased business and a reduced need for as many branches.
One C&G spokesperson stated: “Closing branches is never a decision that we take lightly. But with more customers taking advantage of technology, the number of customers coming through the doors in these particular branches has fallen. By closing these branches where customer use has dropped, we can invest in the branches that customers do use.”
Many consumers have turned to Internet banking over recent years because it saves on the time and hassle of visiting a branch, and because they can now carry out the majority of banking transactions without having to visit a branch.
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