Banks should reconsider branch closures: FCA

The banks are urged to consult customers who may be affected by these moves

FCA banks

Banks should reconsider branch closures: FCA. Source: shutterstock.com

Banks in the UK will need to reconsider closures as a result of the lockdown, according to CITYA.M.

The Financial Conduct Authority (FCA) advised the banks to ensure compliance with regulatory guidance regarding the closure of branches.

The closure will not only affect the consumers but will also make it difficult for the banks to contact and engage the customers.

Meanwhile, HSBC announced plans to shut down 82 branches in the UK in January 2021. The announcement came after a significant increase in digital banking causing a drop in retail banking. While the closures may be necessary, they could negatively affect customers who need in-branch services and lack access to digital banking.

The Financial Conduct Authority mandates firms to ensure customers who are not easily accessible and vulnerable are aware of the banking changes. The banks should also ensure that these customers have other alternatives.

We’ve reported that JP Morgan announced the launch of a digital mobile bank in the UK. The UK is a great market for the bank since it has highly competitive and vibrant customer banking platforms.

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