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<p>The branch strategy of individual firms may be driven by a variety of factors,
including customer interests, market competition and other commercial considerations.
These are commercial decisions for firms and the Government does not intervene in
this decision-making.</p><p> </p><p>Throughout the Covid-19 pandemic, the Government
has been working closely with the financial regulators, banks, building societies
and credit unions to ensure they continue to maintain branch access for essential
services while balancing the needs of their customers with the safety and welfare
of staff. Though many firms have reduced their opening hours the vast majority of
branches have remained open for customers. Furthermore, several retail banks have
put in place solutions for vulnerable customers, including enabling them to make payments
through a trusted person or have their cash securely delivered to them at home. Many
firms have also set up dedicated phone lines so these customers can speak to their
provider as quickly as possible.</p><p> </p><p>The way consumers interact with their
banking is changing. In recent years, over two-thirds of UK adults have used contactless
payments and online banking and nearly half have used mobile banking, according to
UK Finance. As a result of the pandemic, many customers may have used these channels
for the first time. However, the Government still firmly believes that the impact
of branch closures should be understood, considered, and mitigated where possible
so that all customers, wherever they live, continue to have access to over-the-counter
banking services if they wish to use them. That’s why the Government supports the
industry’s Access to Banking Standard which informs customers of the bank’s reason
for closure and helps customers to understand the options they have locally to continue
to access banking services.</p><p> </p><p>The Post Office also allows 95% of business
and 99% of personal banking customers to carry out their everyday banking at 11,500
Post Office branches across the UK. Customers have been able to use the Post Office
for essential banking services as an alternative to their branch throughout the pandemic.
Customers can also use ATMs or cash machines as normal for cash withdrawals and balance
enquiries.</p><p> </p><p>In July 2020, the regulator the Financial Conduct Authority
published draft guidance setting out their expectation of firms when they are deciding
whether and how to reduce their physical branches or the number of free to use ATMs.
Firms are expected to carefully consider the impact of a planned closure on their
customers’ everyday banking and cash access needs, and other relevant branch services
and consider possible alternative access arrangements, which may include mobile branches.
This will ensure the implementation of closure decisions is done in a way that treats
customers fairly.</p>
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