High street bank with 686 branches issues major closure update after rivals shut 700 locations

A HIGH street building society has issued a major closure update after its rivals shuttered 700 branches in the last 15 months.

Nationwide's board today confirmed it will take on Virgin Money as part of a £2.9billion deal after a preliminary takeover was agreed earlier this month.

The deal will now be voted on by Virgin Money's shareholders, which means the specifics of the offer could change.

The planned takeover will bring together Britain's fifth and sixth largest retail lenders, creating a combined group of nearly 700 branches.

The two brands will initially operate under their separate names and be re-branded within six years.

But the acquisition of the Virgin Money bank sites has seen Nationwide extend its bank branch promise by two years.

This means every area where it operates a branch, under either brand name, it has pledged to still be there until 2028 instead of 2026.

It comes after HSBC pledged to not close any further bank branches in 2024, saying instead it would continue to refurbish existing ones.

But it's not such a pretty picture across the UK, with over 700 shutting since January 2023, based on data from cash machine network LINK.

No bank has been immune from the closures, with Lloyds, Barclays, the Bank of Scotland, Halifax and Santander all shuttering branches.

It comes as more households head online to do their everyday banking with less of a need for a physical branch.

But the Government has raised concerns about the impact of the closures on the elderly, disabled, those living in rural locations and small businesses who rely on footfall to banks for custom.

In June last year, a Which? survey of 2,300 banking customers with a disability or impairment found 52% had been negatively impacted by bank closures.

In May 2023, a survey of 2,632 people aged 65 and over by charity Age UK found 39% with a bank account did not use online banking and were at "high risk of financial exclusion".

But some banks or building societies such as HSBC and Nationwide have made pledges to limit branch closures or not shut any at all.

Nationwide launched its Branch Promise in March 2019, committing to keeping branches open in areas where it already has them.

It says sometimes it has to close locations if circumstances are out of its control, but only if no other option is available.

What can you do if your local bank closes?

If a recent bank or building society closure has left you without one nearby, you have some alternatives.

You can carry out most basic banking tasks at your nearest Post Office, although you won't be able to apply for a loan or open a new bank account there.

You can find your nearest Post Office branch by using the locator tool on its website.

Some banks offer a mobile banking service - a bus that comes to your area offering services you can usually get at a physical branch.

Other banks use buildings such as village halls or libraries to offer mobile banking services.

It's worth contacting your bank to see what services they have available, and when they might next be in your area.

If you're thinking about giving online banking a go, comparison website Uswitch has a useful guide on all the need to knows.

Do you have a money problem that needs sorting? Get in touch by emailing squeezeteam@mcb777.fun.