Will Barclays accelerate the changes coming to our High Streets?

Barclays Bank, Norwich.


Photo: Nick Butcher
Copy: Adam Aiken
For:  EDP Business
Archant © 2009
(01603) 772434 Barclays Bank, Norwich. Photo: Nick Butcher Copy: Adam Aiken For: EDP Business Archant © 2009 (01603) 772434

Thursday, January 30, 2014
4:19 PM

While Barclays swiftly moved to dampen speculation, widespread reports that it might be preparing to shut a quarter of its 1,600 High Street branches caused immediate disquiet among groups representing pensioners.

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Barclays bank branches in regionBarclays bank branches in region

• Banking firm Barclays announce branch closures and hundreds of job cuts

Despite the bank’s insistence that it has “no plans” to announce significant reductions to its UK branch network – including 30 in Norfolk – yesterday’s reports of a drastic cull being planned were greeted by many as a depressing, and almost inevitable, sign of the times.

To a generation used to town and city centres that were more about butchers, bakers, greengrocers and banks than coffee shops and bistros, the move would be seen as a further inexorable shift towards a world where characterless out-of-town shopping centres and the internet are replacing the cheery face in the high street.

A rich history

East Anglia has long been a Barclays heartland, nurturing the Gurney family of banks since the mid 18th century.

The Gurneys proved pivotal in the establishment of Barclays as we know it today. The banks founded by the Gurneys, alongside Barclays, Buxtons, Birkbecks and others provided the foundations for today’s bank.

The Gurney family were a prominent Norfolk dynasty of bankers, wool merchants and brewers. Their flagship business was the Bank in Norwich, based at Bank Plain.

This bank was founded in 1775 by John and Henry Gurney. The Norwich Bank was so successful that banks were established at Yarmouth, Halesworth, King’s Lynn and Wisbech in 1781 and 1782.

However, while the reported plans have been roundly condemned by some as a blunt response to the sector’s financial turmoil – one that pays little heed to customers’ needs – others see it as the inevitable direction of travel in a world dominated by the internet.

Commentators believe Barclays is working on a bold strategy that would see the replacement of some of its lost branches with smaller sites in Asda supermarkets.

The reports have already caused ripples of alarm in Norfolk’s rural communities, where many people rely on local banking and the Unite union attacked any “reckless rush” to close branches, warning it would be unpopular with customers.

It is a view that is supported by Phil Wells, CEO of Age UK Norwich, who said it would not be a welcome move.

He said: “While you can’t categorise all old people as the same, and some are quite happy to use internet banking, there are many who can’t afford a computer. Some live in areas with poor internet access, others may never have been trained to use computers and there are people with disabilities, such as arthritis, that make using computer keyboards difficult.”

Mr Wells described the issue as “a much bigger problem than Barclays”.

He said: “It would just join a long list of services no longer delivered face to face and the government is leading the way on that.

“It is a pattern within society where there is less personal contact and a trend towards people becoming more isolated from each other.”

He said banks changing their way of operating to save money might be the right thing to do, but some of the saving had to be re-invested in ways that would allow people without internet access to still use their services; fostering new partnerships with local outlets such as post offices was one way forward.

Stefan Gurney, (pictured), business improvement district executive director for Norwich, is confident that the vibrancy of the high street would be unaffected by banks closing branches.

He said: “There will always be change and progression on the High Street and the landscape 10 years ago was very different to today’s, with its focus on the social experience rather than purely retail.”

He is optimistic there will always be sufficient bank branches remaining to provide customers with face-to-face contact.

And he added: “The internet is here and continuing to develop. The changes it brings will create opportunities for different propositions on the high street that don’t even exist yet.”

A Barclays spokesman said: “We have consistently been clear that, over time, there will be fewer traditional branches as we move to provide banking services to customers where and when they find it most convenient.

“However, the branch network will remain an important part of our banking service.

“While it is inevitable that there will be speculation about how these changes will impact on the branch network, this will be driven by the needs of our customers and, therefore, there is not a target for a number of branches to be closed, nor a timeframe for such action.”

5 comments

  • It was the Tories long before Labour that deregulated banks , right back to the dismal days of Nigel Lawson. Labour to their shame did nothing to reverse those changes and throughout the Blair and Brown years the Tories were demanding even more deregulation of financial services....as dreadful crawlers like Truss still are. Milliband does not want fewer banks but a wider spread of ownership..

    Report this comment

    LARSON.E. WHIPSNADE

    Friday, January 31, 2014

  • Well done Larson for criticising me for something that I did not say!!! Please tell us how fewer branches will benefit the public? Milliband's utterances will only make things worse. We need sound banks properly regulated on a consistent basis, not as happened under Labour when they reduced constraints. Is that clear enough for you?

    Report this comment

    andy

    Thursday, January 30, 2014

  • ".....There are very situations in life that government, and especially politicians, can not, and often do, make worse by their so called good intentions...." . That's right Andy , the banks are best left to regulate themselves and do what they want without government interference. After all , what could possibly go wrong ?

    Report this comment

    LARSON.E. WHIPSNADE

    Thursday, January 30, 2014

  • ".....There are very situations in life that government, and especially politicians, can not, and often do, make worse by their so called good intentions...." . That's right Andy , the banks are best left to regulate themselves and do what they want without government interference. After all , what could possibly go wrong ?

    Report this comment

    LARSON.E. WHIPSNADE

    Thursday, January 30, 2014

  • Don't forget of course that Ed Milliband wants the main banks to fewer branches and alternative banks to be set up. This will accelerate the closure of branches, especially those in rural areas. There are very situations in life that government, and especially politicians, can not, and often do, make worse by their so called good intentions.

    Report this comment

    andy

    Thursday, January 30, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

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