Banks to join the high-street decline
3 min read
17 September 2019
Despite the fact that online banking has improved the operations of many UK businessess, could it be the final shift to the shutting of brick and mortar banks as we know them?
The notion that banks cannot function without a branch is slowly becoming a dated claim. Today with the introduction of virtual banks such as Monzo or Revolut the way in which people access their finances has been altered completely.
This undoubtedly improved the lifestyle of many business owners – quickly being able to access important accounts from the comfort of the train or office.
Is visiting a bank branch still a crucial part of SME and corporate business culture?
- 51% visit a bank branch at least once a week
- 76% use online banking at least once a week
- 30% of businesses in London visit a bank branch every day
Digital still trumps face to face
Reports have shown that 51% of SMEs still visit a branch once a week. However online business banking is still used more claims Close Brothers Business Barometer.
Only 12% of business owners continue to visit a bank daily, the craze of online banking did not start in the UK till 2007. However today 71% businessess are now accessing their finances via tech at least once a week. The industries which are utilising this digital development varies also. Online banking is most popular in whole food distribution and hospitality with these industries using digital access 63% of the time.
David Thomson, CEO of Close Brothers Invoice and Speciality Finance, said “Many digital services have enhanced business opportunities for SMEs, making them more efficient and giving them more time to focus on their core activities”
The 2008 financial crisis shifted business owners trust in the banking industry
Brick-and-mortar banks will follow the high-street decline
The 2008 financial crisis shifted business owners trust in the banking industry, combine this with always improving tech developments and owners no longer need to solely rely on human interaction to manage their finances. The rapid decline in standing businessess is evaporating before our very eyes, in this year alone nearly 3000 shops shut on the UK high street.
As the prospect of another recession looms over Brittain what many industries fear is that spending in both banks and shops could deplete completely.