Study finds access to face-to-face financial service is ‘essential’ – and not just for older people

Against a backdrop of bank branch closures across the UK, a survey into generational attitudes towards branches overturns preconceptions that branches are ‘just for’ the elderly, or the technology shy, and reveals the UK’s preference for greater freedom in how to manage their money.

The study found that half of the Millennial Generation (aged 27-42) would rather visit their local bank or building society branch and be able to speak to someone face-to-face, rather than managing all of their finances online.

Newcastle Building Society, which commissioned the research, says the findings highlight the importance of maintaining access to in-person financial services alongside digital options and the need for fresh thinking on branches. The findings come as the raft of further closures in UK towns continues to cut high streets adrift from face-to-face financial services and access to cash.

When describing in-person banking, the top three words used across all generations surveyed (ages ranging from 16 to 78+) were trustworthy (33%), friendly (31%) and reassuring (31%), while over a fifth (21%) of Gen Z (aged 16-26) and over a third (35%) of the Silent Generation (78 years plus) described in-person banking as ‘essential’.

Amid the rise in fraud and cybercrime in recent years, costing Brits billions of pounds*, 29% of Millennials, 28% of Gen X (aged 44-59), 40% of the Baby Boom Generation (aged 59-77) and 60% of the Silent Generation agreed that people trust someone more if they can talk to them in person.

Across the UK, more than 6,000 bank branches have closed since January 2015, at a rate of around 53 each month, according to Which?, forcing customers to travel miles to get to their nearest branch and making it harder for some people to speak to their financial services provider in-person and ensure their money is working hard for them.

Sarah Burch, 34, from Northumberland is a member of Newcastle Building Society and regular visitor to its Ashington branch. As a lover of holidays abroad and home DIY projects, Sarah uses savings she builds in her Easy Access Saver to help her get away for a few weeks in the sun each year and renovate her home. Having saved with Newcastle Building Society for 11 years, Sarah values the face-to-face service she receives from her local branch. She said: “Being within walking distance from the high street, I know trustworthy financial services and advice from a friendly face is never far away. It’s really handy to be able to quickly speak to a human being when I need support with my account or to discuss the best savings rate for my money, rather than being stuck on an automated phoneline or web chat bot when I need help.” Another big benefit to Sarah of using her local branch is that she’s able to make use of her passbook to help keep on top of her savings. Sarah said: “I love my passbook! It’s really reassuring to be able to pick up my passbook and instantly see my deposits and withdrawals without having to log on to an app or website. With everything you hear about online scams and fraud it also feels more secure than putting in log in details online, because I’m physically going into my branch to manage my money.” Sarah added: “Hearing about all these bank branch closures is a bit worrying. Personally, I like to have the option of visiting a branch and speaking directly with the staff. It makes me feel like I’m important to Newcastle Building Society and as though my money is safer.

Michael Conville, chief customer officer at Newcastle Building Society, said: “Our research clearly shows that the public still see value in the local branch on their high street. Branches have an important role alongside digital services in fostering trust that their money is safe and working hard for them, but also in providing reassurance to those who may require face-to-face support or have concerns about how they manage their money and need to speak to their financial services provider in-person.

“While banks across the UK have decided to pull down the shutters permanently, making it harder for some people to access financial services, savings information, and get face to face advice, we’re committed to ensuring our members can talk to us in the way that suits them best – whether that’s online, over the phone, or in person.

“We believe high streets are always better with branches. It’s important our members know that they are not on their own when it comes to their mortgages, savings and investments and we’re here to stay both online and on high streets across the North East, Cumbria and North Yorkshire.”

The survey of 2,445 people also found that a quarter (25%) of Gen Z said that they use cash less often because they cannot visit their local bank or building society branch, as a result of closures. While a quarter (25%) of Boomers and 22% of Gen X and the Silent Generation said they feel forced to manage more of their finances online.

Despite the trend of branch closures, Newcastle Building Society has continued a multi-year, multi-million-pound investment in its branch network by improving and increasing its number of branches across the region. This includes plans for a brand new branch in Pickering, North Yorkshire, and work on a new flagship branch in Newcastle city centre. Over recent years, the Society has opened branches in several new locations by sharing space with community organisations and helping to restore access to financial services in places where banks have left town.

Other industry alternatives to branch closures include the creation of Banking Hubs, community and mobile banking, as well as a reliance on Post Office counters, each providing to a varying degree, a limited service. Newcastle Building Society’s commitment to branches means members can talk to a friendly face six days a week, for face-to-face service and advice, and benefit from the uniquely positive impact a branch has on its community and its customers.