THE number of bank branches in Britain and Northern Ireland shrank by another 5 per cent in the spring after more than 250 were axed as the pandemic accelerated closures, new figures from the City watchdog have revealed.
Data from the Financial Conduct Authority (FCA) shows that 267 bank and building society branches were closed permanently between April and June, leaving the overall network 4.55 per cent smaller at 5,599.
The closures meant less than two-thirds of the UK population (60.1 per cent) are now within 2km of a bank branch, down from 61.8 per cent in the first quarter of 2021.
It also saw a drop in the proportion of those within 5km of a branch, down to 87.5 per cent from 88 per cent in the previous three months.
In Northern Ireland, lenders such as AIB and Danske Bank have shut branches in the last year as the Covid crisis has ramped up the shift towards online banking.
The FCA said that, with post offices, ATMs and mobile banks thrown in, there are 60,227 places offering free access to cash across the UK, which is up from 59,903 quarter on quarter.
But the figures have been flattered by the number of bank branches and ATMs that reopened after being temporarily shut in the lockdown at the start of 2021.
The FCA said that, while 95.5 per cent of people in the UK are within 2km of a free cash access point, up from 95.4 per cent the previous quarter, only 77.3 per cent of those in rural areas are within 2km of free access to cash.
Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: "Bank branch closures risk cutting the most vulnerable people off from their cash.
"Almost two in five of us now live more than 2km from a bank branch, and goodness knows how far from the bank where we actually hold our account.
"And while the vast majority of us can still access cash without a charge, without travelling more than 2km, there's a real risk to those who are less mobile and need help from a human when getting hold of their money."
She added that 2km may be too far for many vulnerable customers.
"Many of the five million people who rely on cash are older and have mobility issues," she said.
"If they don't have access to transport, 2km may as well be 20km."
