The future of "in branch" banking.

[jfollows]

My experience is that most of the transactions requiring a visit to a bank branch can be automated or replaced by other methods, and the ones that can't it turns out that the bank staff aren't competent enough to deal with!

 

[Bletchleyite]

My experience is that most of the transactions requiring a visit to a bank branch can be automated or replaced by other methods, and the ones that can't it turns out that the bank staff aren't competent enough to deal with!

That's a fairly good point. Branch banking as it is now isn't what it was. It's often poorly-trained people operating the same software you could operate yourself. A bit like railway ticket offices often are.

 

[jfollows]

The other problem is that they frequently try and sell you things you don't want at the same time. That's annoying. I just want to pay in this cheque, thank you very much.

Even my "personal account manager" tried to sell me things, but she was very helpful in the end when I worked out that I could get a cheaper bank account which no longer included her services!

But the whole mentality behind the in-branch interactions came with a not-so-hidden agenda of their trying to sell me something rather than dealing with my request, although they did this most of the time as well.

 

[Inthewest]

I'm in complete favour of branches being closed.

HOWEVER - banks must start being more flexible to what they offer through apps / online.
Everything I can do through the online banking portal, I should be able to do through the app (to be honest, I think I can now).

But if I want to open a joint bank account with a particular bank, I had to telephone to make an appointment, then we both had to take ID in and they'd open it in branch. Now, I have to take ID into the branch for them to make a telephone appointment where they'll open it over the phone. We already have three or four joint accounts with the same bank so we're not unknown to them.

I understand banks protecting themselves from money laundering but that's more an excuse for making something difficult rather than being useful.

I can open a solo bank account online in a few clicks. I should be able to open a joint account too (obviously limited to the people I already have a joint account with). If my partner and I had split up, separating the bank accounts should be our priority. This is the only reason why I think it's difficult to open joint accounts - in case we're split up now, I set one up and then rack up loads of debt. But put the warnings in place while opening the account, or call my partner to authorise... make it so she has to type in her online banking password online... i don't know but there has to be something else in place other than effectively putting people off.

 

[Bletchleyite]

If you want a bank that lets you do everything online, pick one that has no branches.

 

[curly42]

Not a problem for me,I have to say - never had a bank account.

 

[Bletchleyite]

Not a problem for me,I have to say - never had a bank account.

Rather difficult to live without one these days, surely?

 

[curly42]

Not at all - everything goes into my wifes account and I get cash from her.
Never had a bank account,and don't have any cards - cash only.

Last of the Dinosaurs !!!

 

[nlogax]

As those of us who've been online most of our lives finally get old, that's when I expect most physical branches to finally disappear. The majority of us don't bother with cheques, we're au fait with Faster Payments and online service chatbots and we rely on apps, bank websites or email for statements or paperwork requiring signatures. For the remaining few outliers or technology refuseniks there'll be workarounds but it won't be in the form of local branches.

 

[Mojo]

I’ve had to go in branch and speak to a human for a few things over the past two years:

- Bank transfer when buying a house as telephone banking/online at the banks Im with a limit of £25,000 per rolling 24 hour period applies whereas in branch the limit is much higher

- Verification of proof of identity when setting up a new account (and I didn’t quite fancy posting my identification documents which was the other option)

- Paying in coins

- Close a Help To Buy Isa

In addition I’ve had to go in to the branch (but not necessarily to speak to a person, unless there’s no queue) to pay in notes and also to pay in a cheque that the mobile app wouldn’t accept.

 

[johntea]

I think I've opened 4-5 bank accounts in the last couple of years and not stepped foot in any of the actual bank branches which does feel a bit weird! I show ZERO loyalty to a specific bank these days, there is no need to when I can gain £150 to switch and ditch! (sadly not as many offers around now with Covid but the switching guarantee pretty much does all the hard work for you)

What I do find rather tight is the cash machine in the hospital where I work now charges 95p to withdraw cash, fourtunately most of the hospital food and drink outlets etc. accept card payments with no fee these days

 

[radamfi]

What percentage of people queuing up outside the bank are doing transactions available online, on the phone or the cash machine? They are inconveniencing themselves and others, and getting wet in the rain at the same time.

 

[Daniel740]

It's fairly easy to withdraw up to about £300 (depending on your bank) from an ATM. Above that, these days you are almost certain to find a better way of payment. For instance I recently sold a car and was paid by Faster Payments, I stood there phone in hand waiting for the money to arrive, and when it did handed over the keys.

I did once buy a used car for about £1K cash[1], but that was before Faster Payments were a thing. I think other than that about £250 is the largest cash transaction I have ever made. The last few cars I bought I paid by BACS. I paid for one by debit card a while ago!

That just leaves people paying builders in cash to evade tax, and I have this >< amount of sympathy for those people.

[1] Which was taken out from ATMs over about 3-4 days rather than over the counter.

You’re wrong, unfortunately. Cash will never die out...

 

[Bletchleyite]

You’re wrong, unfortunately. Cash will never die out...

Let's have that discussion again in 20 years and see who's right.

 

[Senex]

Let's have that discussion again in 20 years and see who's right.

In principle I think that cash is indeed on its way out. But there's an unanswered question, and that's what happens when the electronic systems fail or there is a power cut, so that you can't pay by card or by phone and the shops put up their "Cash Only" notices? (And power cuts do still happen with surprising regularity!)

As for specifically requiring bank branches, as long as some banks (mine - TSB - being one) don't let you pay in cheques except by visiting a branch, then there needs to be an accessible network of branches. I know cheques are supposed to be on their way out, but they're an awful long time a-dying.

 

[Bletchleyite]

In principle I think that cash is indeed on its way out. But there's an unanswered question, and that's what happens when the electronic systems fail or there is a power cut, so that you can't pay by card or by phone and the shops put up their "Cash Only" notices? (And power cuts do still happen with surprising regularity!)

I've experienced, that I can recall, about 4-5 power cuts in my lifetime, and of those most of them were in the middle of the night (i.e. the only thing that evidenced it was flashing numbers on various device clocks).

The answer is they'd have to close. Which as it's rare would not be disastrous. If it was a big issue for them, they'd have a payment system on a mobile device as a backup. You do get whole-town power cuts occasionally (that would take that out too) but it's very rare, only usually in "disaster scenarios" like major flooding when you'd evacuate anyway.

As for specifically requiring bank branches, as long as some banks (mine - TSB - being one) don't let you pay in cheques except by visiting a branch, then there needs to be an accessible network of branches. I know cheques are supposed to be on their way out, but they're an awful long time a-dying.

They can be deposited by post or via cheque imaging. I'm sure the bank will implement one of those if it's the last thing requiring branches!

 

[jfollows]

In principle I think that cash is indeed on its way out. But there's an unanswered question, and that's what happens when the electronic systems fail or there is a power cut, so that you can't pay by card or by phone and the shops put up their "Cash Only" notices? (And power cuts do still happen with surprising regularity!)

I was at my dentist last month and they experienced a two-day outage of their Internet service which prevented them from taking electronic payments. They asked if I could pay by cash, but I didn't have enough on me. No problem, they rang me two days later as agreed and took payment then, and emailed me a receipt.

It doesn't happen often, for sure. I don't think this was a power cut, it was a mistaken cable being severed in some way in the vicinity.

I only have £30 cash on me, and this dates back to February; I've not used cash since then. Normally I'd get through a little bit every so often - I'm increasing my use of contactless in line with retailers' acceptance, though - a pasty at Manchester Piccadilly on the way home after the dentist might have been cash once. I used to withdraw £200 every couple of months I guess.

 

[Bletchleyite]

I was at my dentist last month and they experienced a two-day outage of their Internet service which prevented them from taking electronic payments. They asked if I could pay by cash, but I didn't have enough on me. No problem, they rang me two days later as agreed and took payment then, and emailed me a receipt.

Given the expense of dental treatment cash doesn't figure as an option; I never carry enough to pay for it. BACS would be a reasonable backup to put in place for something like that.

 

[S&CLER]

In principle I think that cash is indeed on its way out. But there's an unanswered question, and that's what happens when the electronic systems fail or there is a power cut, so that you can't pay by card or by phone and the shops put up their "Cash Only" notices? (And power cuts do still happen with surprising regularity!)

As for specifically requiring bank branches, as long as some banks (mine - TSB - being one) don't let you pay in cheques except by visiting a branch, then there needs to be an accessible network of branches. I know cheques are supposed to be on their way out, but they're an awful long time a-dying.

Cheques have their uses. I've organised a holiday, and preferred to receive payment in cheques payable to the tour company from the 35 people who were going, rather than hold their money in my own account (I have to do this for one person who doesn't have a cheque book). Now that the Tier 3 restrictions have come in here (a day or two after I'd sent all the tickets and itineraries out), I am faced with returning £7670 in 25 cheques (because of the couples/pairs sharing rooms, there are fewer cheques to write than there are passengers). I don't have their bank details and I don't bank on line. But it's not really a hardship, and I don't mind doing it. Likewise, I don't mind taking a free trip on my bus pass to Euxton to pay the cheques to the company when I've collected the deposits and balances. I have the spare time, it's an enjoyable day out and safer than the post. If cheques were abolished, that would be the end of the holidays, as far as I am concerned.

I still pay the gas bill by cheque, rather than direct debit, because of difficulties caused once, when the money was not being paid: the gas company blamed the bank and the bank blamed the gas company, so in the end I gave up on that direct debit and just put something away in the ISA each month to cover the gas bill. I like to pay that bill over the bank counter, because it gives me incontrovertible proof of the fact and date of payment.

I was in Bridport once and was unable to pay an antique dealer £200 for 2 things I bought, because he couldn't take cards. I didn't have a cheque book with me, so he just said, oh take them home and send me a cheque when you get home, you've got a trustworthy face. Amazing! Ana antique dealer in Arundel lost a £100 sale because his phone line wasn't working and so I couldn't pay by card, and there are no banks in Arundel, and only one cash machine which is rather far out,.

 

[radamfi]

If cheques were abolished, that would be the end of the holidays, as far as I am concerned.

So if you lived in a country that has never had cheques, you would never have gone on holiday!

because it gives me incontrovertible proof of the fact and date of payment.

You would get that by using bank transfer. There is actually more risk using the bank counter, as it involves manual processing. Cheques can get lost in the system.

 

[jfollows]

I've written 17 cheques I see since 27/8/2013, the last one on 17/1/2018 for £10 to Companies House and I felt this was a bit antediluvian of them to require a cheque; I don't think they do any more.

I suspect my 17 cheques is 17 more than a lot of people over the same period. I use faster payments/online to pay my gardener nowadays, when he leaves he tells me how much and I tell him that the money will be in his account before he gets home, which is about 1 mile away.

The only purpose I might want to use a cheque for now might be, as once in the past, when I made what I considered a "large" payment into my pension, and I trusted cheque+post more than the chance of an error in a payment to a new payee online.

EDIT - Oh yes, I used to pay gas/electricity bills on receipt of a quarterly bill, but I made payment online and not by cheque. In the end I overcame my aversion to direct debit because I saved a fair amount of money also. But I understand the reluctance.

 

[Darandio]

I was in Bridport once and was unable to pay an antique dealer £200 for 2 things I bought, because he couldn't take cards. I didn't have a cheque book with me, so he just said, oh take them home and send me a cheque when you get home, you've got a trustworthy face. Amazing!

Paying for antiques with an antique, quite the novelty!

Ana antique dealer in Arundel lost a £100 sale because his phone line wasn't working and so I couldn't pay by card, and there are no banks in Arundel, and only one cash machine which is rather far out,.

Well unless the ATM map is lying, I count 4 cash machines in Arundel. They also seem to have two post offices in close proximity, i'm quite surprised at that considering you made it sound like the last outpost.

 

[Bletchleyite]

I was in Bridport once and was unable to pay an antique dealer £200 for 2 things I bought, because he couldn't take cards. I didn't have a cheque book with me, so he just said, oh take them home and send me a cheque when you get home, you've got a trustworthy face. Amazing!

Of course, that could as easily be "send me a BACS transfer when you get home". Anyone with a bank account can accept a BACS transfer, and there aren't really going to be any viable businesses without bank accounts.

 

[SteveM70]

The decline of branch banking isn’t terminal, but a lot more branches will close and the services that do require face to face interaction (for me, getting a mortgage last year for example) will be concentrated in a smaller number of “super banks” in city centres etc

More and more will be made possible using apps and online. For example in bank with HSBC and I can pay cheques up to £750 using their app. Obviously the number of cheques issues will probably decrease further, but I expect the value cap will be increased in due course

The one upside of this is that some of the services people need (like paying in cheques over £750 for me) are available in post offices, so presumably they get a small fee for doing this and it’ll help keep them viable

In the meantime, what’s really frustrating is that the banks reducing their opening hours has generally included getting rid of any Saturday opening which I find perverse and unhelpful

 

[Daniel740]

Of course, that could as easily be "send me a BACS transfer when you get home". Anyone with a bank account can accept a BACS transfer, and there aren't really going to be any viable businesses without bank accounts.

There’s no way I’d be handing my bank details to a complete stranger...

 

[Bletchleyite]

The decline of branch banking isn’t terminal, but a lot more branches will close and the services that do require face to face interaction (for me, getting a mortgage last year for example) will be concentrated in a smaller number of “super banks” in city centres etc

Getting a mortgage doesn't in principle require face-to-face interaction, there is no reason it could not be done online, with the conveyancing solicitor sorting out the fiddly bits. However, I'd suspect, where people want that, it would be less likely to take place in a bank branch, and more likely to take place by way of a mortgage broker or advisor visiting your home by appointment and doing it there. (I was going to say "in an estate agent's office" but with Rightmove there's not a lot of point in those, either - they can work from home).

There’s no way I’d be handing my bank details to a complete stranger...

I've done it on many occasions. What do you fear? Being paid money?

In Germany it's normal for businesses to have them on their letterhead.

Yes, you could technically set up a direct debit, but that is by definition reversible (and no doubt will gain some sort of electronic verification soon enough; it's been long coming). Not a lot else you could do with a simple sort code and account number.

(And no, I'm not posting mine here, simply because I know there are stubborn people who would set up a load of DDs to prove a point and I don't want the faff of reversing them)

Edit: Oh, by the way, if you give someone a cheque you've given them your bank details, they are written along the bottom.

 

[birchesgreen]

I don't even know where my cheque book is, i think the last one i wrote was over 10 years ago. My Mum writes a lot of cheques though, mostly to me at the moment as i do her shopping for her. Luckily the Halifax app makes "paying" them in virtually pretty painless.

 

[radamfi]

Yes, you could technically set up a direct debit, but that is by definition reversible (and no doubt will gain some sort of electronic verification soon enough; it's been long coming).

With some app banks, you get a notification when a company wants to debit your account and you have to approve it manually. Or you can set it to approve payments from that company automatically in future.

 

[Senex]

I've experienced, that I can recall, about 4-5 power cuts in my lifetime, and of those most of them were in the middle of the night (i.e. the only thing that evidenced it was flashing numbers on various device clocks).

Well, I'd say that here in central York we get two or three a year, and always during the daytime.

They can be deposited by post or via cheque imaging. I'm sure the bank will implement one of those if it's the last thing requiring branches!

Post's no good unless you can get proof of posting, and that requires a visit to the Post Office (and Post Offices are every bit as horrible places to have to visit as banks) and a cost (?). Imaging is by now well proved, but that's only any good if your bank does it. TSB is stuck in the past and doesn't.

 

[Bletchleyite]

With some app banks, you get a notification when a company wants to debit your account and you have to approve it manually. Or you can set it to approve payments from that company automatically in future.

That's not a bad idea - prevents you being caught out by a mistake, too.

Post's no good unless you can get proof of posting

The nature of cheques (in many ways the whole point of them) is that they can be cancelled and replaced. OK, this costs a tenner, but a tenner is a reasonable sum to risk.