SMR consumer survey on bank branch closures conducted with 1,003 consumers

The Consumer Council commissioned Social Market Research (SMR) to carry out a survey with 1,003 consumers in March 2022, alongside geographical mapping analysis of banking services across Northern Ireland that it instructed Land and Property Services (LPS) to conduct in January 2022¹. The findings were published in the council's Access to Banking Services in Northern Ireland report in June 2023¹.

Between May 2020 and May 2022 banks in Northern Ireland permanently closed 34 branches, and by early 2023 a further 18 had closed, meaning Northern Ireland had lost 27% of its total bank branch network in less than three years¹. By January 2023, 52 branches had closed, which the report states makes up 27% of the total Northern Ireland bank branch network¹.

The mapping analysis found that 40.2% of the total population of Northern Ireland live within 1km in road distance of a banking service, meaning a bank or Post Office branch, and 66.7% live within 2km in road distance¹. Accessibility varies by area and by distance measure:

One fifth (21.2%) of the rural population live within 1km of a banking service, and almost a quarter (24.6%) of those living in rural areas are more than 5km away from one¹. In 15% of Northern Ireland households, no one has access to a car or van¹. Out of a total of 462 electoral wards, 109 have no banking service at all (23.6%), 187 have just one, and 166 have two or more within their boundaries¹. Fermanagh & Omagh has the lowest figures for local government district accessibility, with 21.5% of its overall population living within 1km and 44.9% within 2km; 11.5% of its rural population live within 1km and 30.7% within 2km¹.

Among consumers surveyed, 21% had seen their local bank branch close within the last three years¹. Of those affected by a closure, 84% said the closure had an impact on them, and 48% said it had a major impact on them or their local community¹. Of those consumers with a disability affected by a closure (23%), 94% said the closure had an impact, with 70% of those describing the impact as major¹. Of people on low incomes, meaning less than £20,000 per year, affected by closure (23%), 90% said there was an impact, with 60% of them saying this was major¹. For affected older consumers (25%) and those living in a rural area (25%), over half (54% and 53% respectively) stated that the impact on them or their local community had been a major one¹.

The report also notes that the Lending Standards Board's Access to Banking Standard (2017) sets out requirements for its registered firms¹.

Why it matters for households

The closures change how far people must travel to reach a bank or Post Office branch, and the report's mapping shows the effect is unevenly spread. For a large proportion of consumers, most journeys to access a banking service would in all probability need to be carried out using a vehicle, while 15% of households have no access to a car or van¹. Rural residents are the most affected by distance: 21.2% live within 1km of a banking service and 24.6% are more than 5km away¹. The survey evidence points to impacts concentrated among consumers with a disability, those on low incomes and older consumers, with major impacts reported by 70%, 60% and 54% of affected respondents in those groups respectively¹. Post Offices remain part of the picture: 28% of survey respondents said they withdraw cash from the Post Office at least once a month and 19% used a Post Office to pay cash or cheques into their personal bank account at least once a month¹. Focus groups indicated that branch closures make access to cash more difficult, as in-branch cash withdrawal is removed and cash machines associated with the banks are often withdrawn at the same time¹. From 5 April 2022, people receiving tax credits, child benefit payments and other statutory payments have no longer been able to access credits through the Post Office¹.

What happens next

The report sets out next steps but does not give dated commitments for further closures or for any change to the Access to Banking Standard¹.