Are The Days of High Street Banks Numbered?

📰 Industry News

Here's a roundup of this week's top headlines shaking up the UK business world.

• Interest rates are expected to be cut by the Bank of England later, in a move closely watched by households and economists. Analysts predict a cut from 4.75% to 4.50%. (BBC)

• Staff at Santander UK are bracing themselves for further job losses, as the bank confirmed it would push ahead with a cost-cutting programme after a 38% drop in full-year profits. (The Guardian)

• Fashion retailer Mango announces plans to open 25 new stores throughout the UK in 2025, including a 1,100 sq/m flagship store on Oxford Street. (The Retail Bulletin)

• Tesco has told MPs this week that it is interested in acquiring 100 Crown Post Office branches. (Sky News)

• AstraZeneca will no longer invest £450m ($558.3m) at its vaccine manufacturing plant in northern England, the company said on Friday, citing a reduction in government support. (Reuters)

• Barclays has tightened its work-from-home policy with staff now required to come into the office for an extra day a week. (BBC)

🏦 Why Banks Are Abandoning The High Street

Once upon a time, you could walk into your local bank, chat with a cashier, and maybe even leave with a little branded pen. Fast forward to 2025, and the high street bank is rapidly becoming an endangered species.

Lloyds Banking Group has just announced the closure of 136 more branches across Lloyds, Halifax, and Bank of Scotland, bringing their total number of sites down to just 757. For context, back in 2015, there were over 6,000 more bank branches in the UK than there are today.

Banks say this is all because we’re embracing digital banking like never before. And sure, over 20 million people now use banking apps. But let’s not pretend this isn’t also about cutting costs and boosting profits. Meanwhile, rural communities and older customers who still rely on cash? Well, they’re pretty much being left in the dust.

So why are banks closing at record speeds?

1. "Everyone’s Banking Online" (apparently)
   Yes, digital banking is growing and it’s easier than ever. Many people barely remember the last time they stepped inside a branch. But banks love this narrative because it justifies mass closures while ignoring the people who still depend on in-person banking.

2. It’s About Saving (and Making) Money
   Branches are expensive to run, and with fewer customers visiting, banks see a golden opportunity to slash costs. Less real estate + fewer staff = more profit. Customers, meanwhile, are left figuring out how to deposit cash without travelling miles.

3. Banking Hubs To Ease The Transition
   Banking hubs, where multiple banks share space for basic transactions, have been set up to fill the void. There are currently 76 hubs, with more promised. But compared to the thousands of lost branches, it’s like slapping a plaster on a bullet wound.

4. The People Getting Left Behind
   Not everyone can just switch to digital banking. Many older customers still depend on branches for face-to-face service, and rural communities are losing access to basic banking. The alternative? Hope your Post Office can handle it - or travel to the nearest town. Then you look at cuts to rural transport, and that’s a whole different story.

What does the future look like?

The future of banking in the UK is looking pretty clear - fewer branches, more screens and growing fintech. High street banks are becoming an endangered species, with financial technology giants like Monzo and Starling thriving while traditional banks double down on AI chatbots and online services.

Banking hubs and Post Offices might soften the blow, but let’s be honest - they’re not a full replacement. Regulators could step in, but if history tells us anything, don’t hold your breath. The reality? If you’re not already banking digitally, you won’t have much choice soon.

📅 200 Companies Opt For Permanent 4-Day Week

200 UK companies, covering 5,000 workers, have committed to a permanent four-day workweek with no pay cuts. Backed by marketing, tech, and social care firms, the move aims to boost productivity and employee well-being. However, the shift exposes a growing divide between forward-thinking firms and those sticking to traditional work patterns.

So why now?

• Momentum Builds: 200 companies, 5,000+ workers, and growing support for shorter workweeks.

• Younger Workforce Pressure: Most 18–34-year-olds expect flexible, modern work policies.

• Flexibility Divide: Forward-thinking firms embrace change; others dig in on office mandates.

The change to a four-day week signals progress - but it will also create division. Flexible firms may reap the rewards of happier, more loyal employees, while those clinging to rigid patterns risk being seen as ‘old-fashioned’. As WFH eases, perhaps the 4-day week is a happy compromise? With younger generations driving the change, the future of work may hinge on which side adapts fastest.

🌎 From Across The Pond

Dropshipping to the US just got a whole lot more difficult, with the US Postal Service saying they no longer accept parcels from mainland China and Hong Kong. This could also be a huge blow to online giants Shein and Temu.

While beauty firm Estée Lauder is letting go of twice as many staff as planned in the US, suggesting uncertainty around Trump’s tariffs as a cause for concern. The firm says job losses could reach 7,000.

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