Key Highlights :

NatWest is closing 26 UK branches in September, along with 13 Halifax branch closures, in all 39.

More than 6,400 branches have closed since 2015, resulting in the UK having one of Europe's lowest branch densities.

Key Background :

The UK's banking network is going through its most major change in decades, with NatWest and Halifax at the forefront of the latest round of branch closures. NatWest has announced that 26 of its branches will be closing this September, and Halifax will be closing 13 in the same timeframe. That adds up to 39 affected branches, following a steep decline in high-street banking locations nationwide.

Over 6,400 branches of bank, building society, and credit union have closed since 2015 in the UK. That is over 50 per month on average. That rate has only been increasing in the last few years: by 2024, their total number had dropped from 10,410 in 2019 to only 6,870, a 34% reduction over five years. This has resulted in the UK having one of the lowest branch-to-population ratios on the continent, standing at approximately one branch per 10,000 citizens.

Banks assert that the closures are being prompted by the underlying shifts in customer patterns. NatWest says that over four out of five of its account holders currently use digital banking services, with almost all new accounts being opened online. Nationally, usage of mobile and internet banking has risen steeply over the last five years, driven by the explosive expansion of fully digital banks like Monzo and Revolut. These banks have raised industry standards in terms of convenience, strongly appealing to younger audiences and reframing expectations within the industry.

Although digitisation is obviously better for efficiency and convenience, concerns still exist over financial exclusion. Older consumers, and those in rural areas with poor internet penetration, are amongst those most vulnerable to branch closures. Research indicates that nearly four in five individuals over the age of 65 do not bank online, making them over-reliant on conventional branch services.

To meet these issues, banks and regulators have implemented arrangements to maintain access to basic services. A key initiative is the deployment of shared banking hubs, usually run in partnership with the Post Office. Hubs offer services including cash withdrawal, deposits, and person-to-person advice. In 2025, there are 179 hubs in operation, aiming to reach 350 by 2029 to help plug the gap left by branch closures.

The branch closures made by NatWest and Halifax mirror both the challenges and opportunities of banking digitalization. While the technology is making financial services quicker and more accessible for many, the sector is coming under greater pressure to make sure that no community falls behind as physical branches close.

About the Author

Ryan Parker

Ryan Parker is a Managing Editor at Business Minds Media.