In September 2020, we published guidance on branch closures and ATM closures and conversions. The guidance supports our consumer protection objective and is designed to protect consumers by setting expectation that firms should assess customer (consumer and SME or micro-enterprise) needs and consider the availability and provision of alternative arrangements where closures or conversions are planned.
Our Principles for Businesses require firms to treat their customers fairly, and communicate with them in a fair, clear and not misleading way. We expect firms to exercise particular care with vulnerable customers.
In January 2021, the Government and devolved authorities announced new restrictions across the UK due to coronavirus (Covid-19). Some banks and building societies have informed us that they are either going ahead with branch closures already announced, or announcing new branch closures during the current lockdown.
We are concerned that these activities could have significant consequences for customers. It may be harder than usual to reach all customers under the current restrictions and engage with them on closure proposals effectively (for example, small businesses that are temporarily closed). Some customers may need to access in-branch services to help them prepare for closures but may be unable to do so. Customers may also need additional help to access online banking and making payments. We want firms to review their plans against our existing guidance and ensure that they continue to comply with our Principles.
What we’re asking of firms
In line with our guidance firms should consider the impact of branch closures on customers. Where they are unable to meet the expectations of our guidance during lockdown measures, they should consider pausing or delaying new branch closures where possible, particularly where this could have significant impact on vulnerable customers. This would be similar to the approach firms took during lockdown measures in 2020.
Where firms consider it is appropriate to continue with plans during this period, we expect them to have considered our guidance and be able to demonstrate how they’ve taken the concerns and expectations set out in this statement into account. If firms are considering new closures or advancing those previously announced during this period, we expect them to:
- communicate with customers in a way that is clear, fair and not misleading to inform them of the closure proposals. Particular consideration should be given to the best way to make sure vulnerable and hard-to-reach customers are aware of the proposals and are able to contact the firm.
- give customers clear information about how the firm can help them access alternatives during this period of national restrictions, for example support to use online banking.
- where appropriate, engage with customers to understand their needs and properly consider how they will be affected by the proposals.