RUTH SUNDERLAND: Support Our Bank Branches
Many of a certain age are perfectly able to conduct their financial affairs online.
Branches are not just remnants of the past, they serve a crucial purpose in maintaining human contact, accountability, and problem-solving. Even though many older individuals are capable of managing their finances online, there are situations where the assistance of a human representative is invaluable. If major banks continue to close branches and focus solely on online services, we risk losing these personal relationships and sense of community.
Some critics argue that the downfall of Metro Bank, with its vibrant branches, proves that a network of branches is too expensive to maintain. However, this reasoning is flawed. Coincidentally, as Metro Bank struggled to raise capital, Nationwide Building Society reaffirmed its commitment to keeping branches open. In fact, Nationwide now has the largest network in the UK, with over 600 outlets (outstripping Barclays and HSBC). Furthermore, each Nationwide branch is managed by an actual person, something that has become increasingly rare elsewhere.
It is important to note that branches themselves are not responsible for Metro Bank’s troubles. The root causes lie in the bank’s culture, past leadership, and business model. Metro Bank’s founder, Vernon Hill, left the bank in 2019 following an accounting scandal. During his tenure, Metro Bank paid around £25m to a company owned by his wife for design services in branches. Hill previously faced scrutiny from regulators over contracts with family members at a US bank and was also ousted from another US bank after a boardroom dispute. In 2022, he and his wife were ordered to restore mismanaged assets and pay penalties to the InterArch pension plan.
Nationwide’s position is a refreshing counterbalance to the prevailing anti-branch sentiment among most bank executives. The CEO, Debbie Crosbie, argues that Nationwide can invest in branches because, as a mutual building society, it is not solely focused on generating profits for shareholders. Additionally, Nationwide’s profitable performance in 2023 and its dedication to cost-efficiency further support its commitment to branches.
While Nationwide is not without its flaws, it deserves recognition for prioritizing the importance of bank branches.
This article includes affiliate links. Clicking on them may result in a small commission, which helps fund This Is Money and allows us to keep our content free.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
