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UK bank branches overshadowed by digital platforms, says new report

A new report by the British Bankers’ Association (BBA) and EY says that rising instances of transactions over phone and the internet has resulted in a 6% decrease in the use of bank branches.

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The report has been published among closures and job cuts by various banks across the world.

According to the Guardian, the number of banks have gone down from 13,349 around 20 years ago to 9,702 in 2013.

Recently, HSBC announced it will be cutting 25,000 jobs globally with new technology being partly responsible for it.

Lloyds has also announced the closure of 200 branches and the slashing of 9,000 jobs as a result of the adoption of digital technologies.

According to the data released in the report, Britons have downloaded around 14.7 million banking apps so far. It also stated that in the next three years, 60% of all banking transactions will be conducted on mobile devices.

The Guardian quoted BBA CEO Anthony Browne as saying: "Our report shows that there is much to look forward to. Biometric security features will allow us to get hold of our money faster and without going through the rigmarole of passwords and pin codes."

Contactless bank cards also saw a three-fold increase in usage with the cards being used around 40 million times in January. The spending limit on a contactless transaction is likely to increase from £20 to £30 in September, reported the Telegraph.

Browne said: "Technology is changing our lives and banking is no different – it is now easier than ever for us to check our balances, pay our friends and manage our money. The rapid take up of apps and mobile banking appears to be a real game changer for the British public."


Image: Britons have downloaded around 14.7 million banking apps so far. Photo: courtesy of Stuart Miles/freedigitalphotos.net.