NatWest to close 53 branches in 2025

This decision comes as part of a broader trend among high street lenders, adapting to changing consumer preferences and the increasing popularity of online banking.

The closures, which will take effect this year, follow a significant reduction in NatWest’s physical branch network in recent years. In 2022, the organisation shuttered 48 sites, while in 2023 it has already closed nearly 20 branches.

Since 2015, the NatWest Group, which also includes Royal Bank of Scotland and Ulster Bank, has seen a total of 1,409 branches close. The bank currently boasts over 19 million customers, with more than 3.5 million engaging in online banking activities.

The decline of high street branches is part of a larger pattern, with UK banks and building societies having closed a staggering 6,161 branches since January 2015. Research from Which? indicates that closures have occurred at an average rate of around 53 branches per month.

Among other major lenders, Lloyds Banking Group has closed 1,216 sites, while Barclays has recorded 1,227 branch closures, marking it as the individual bank with the most significant network reduction.

NatWest’s decision comes amid regulatory developments that require banks and building societies to assess the impact of branch closures on local communities. New rules set forth by the Financial Conduct Authority (FCA) mandate that institutions must ensure customers still have access to cash services when they close branches.

Providers are obligated to address any significant gaps left in cash accessibility and provide reasonable alternatives. These alternatives may include maintaining existing branches or cash machines until replacements are established.

Moreover, the financial landscape is shifting, with banking hubs being established in response to the crisis created by branch closures. These hubs allow multiple banks to share resources and offer vital services previously conducted at individual branches.

Banking hubs, typically run by the Post Office, provide customers with the ability to perform routine banking tasks such as deposits, withdrawals, and account inquiries. Private booths are also available for more complex financial discussions.

While the majority of banking customers appear to be transitioning online, concerns remain for specific demographics, particularly the elderly and those residing in rural areas who may rely on physical branches for their banking needs.

With the recent closures, individuals affected may turn to nearby Post Office locations for basic banking services, although more complex transactions, such as loan applications or account openings, may not be possible at those facilities.