Since January 2015 a staggering 6,694 branch locations have closed across the country as digital, self-service solutions have grown in popularity. As a result, many consumers have lost access to local face-to-face services, and instead, been encouraged to adopt digital channels for day-to-day account management and servicing.

And the result? A hugely detrimental impact on the elderly, people living with disabilities, people living in rural locations, people who require additional financial advice, and those who are self-employed where there is still a significant reliance on the branch.

With branch locations continuing to steadily close, and data indicating that consumers are widely rejecting the traditional teller branch layout, a new opportunity has emerged for businesses willing to think outside of the box and explore new ways to interact with consumers face-to-face. Lenders who challenge what defines a branch are well positioned to build new and nurture existing relationships in locations where other providers have closed their branches. Offering face-to-face operations in a modern way is something that lenders who rely on digital-only operations simply cannot compete with.

Why change?

Imagine a branch. What do you see?

The opportunity for the future of the branch lies beyond bricks and mortar. What if a physical branch location did not need the space for servers and teller desks, but was instead filled with sofas, offered coffee and free community WIFI, and had a corner for young children to play in? How would this location change interactions with consumers?

Layouts such as these are growing in popularity, as banks and building societies reimagine branches as community hubs centred around advice services. They become locations that draw new customers in and provide opportunities to meet existing clients where they are.

A colleague with a tablet can advertise their presence at a local library, coffee shop, church hall, or community centre throughout the week and offer vital branch services to those who need it most. This same colleague can visit schools and provide financial literacy programmes to children, parent groups to share information about saving for a child’s future, colleges to set up first savings accounts, or local workplaces to discuss adult financial planning.

Why now?

There are three things to consider here. Firstly, the mortgage market is being impacted by geopolitical changes on interest rates and buyers are trying to avoid rising interest rates. Second, the access to cash rules have settled in since their introduction in September 2024 and there is a need to proactively address this regulation. Third, consumers may be overwhelmingly adopting online banking, but they still seek a human connection for big life decisions.

If banks and building societies don’t find a solution to offer branch services more diversely, they’re at risk of losing more branches and alienating customers. Some building societies are opening new branches to fill gaps on the high street, and digital-only banks are leaning in heavily to the younger demographic. This leaves some providers stuck in the middle where gaps in the market are being filled, but their digital capabilities do not match that of a provider that specialises in this space.

Why SBS Digital Branch?

SBS Digital Branch is a new tablet-based software solution that helps UK banks, building societies, and other specialist mortgage lenders reimagine their branch networks. The cloud-native branch servicing platform unifies operations across physical locations, mobile colleagues, and pop-up branches, making everyday banking services accessible for everyone, everywhere. The freedom of SBS Digital Branch enables lenders to carve out a unique identity and experience that clients will love.

With its intuitive and user-friendly user interface and AI powered advice insights, SBS Digital Branch enables banks and building societies to offer more valuable advice and faster, saving up to 3 minutes on every interaction, unlocking up to 1,946 extra staff hours per year, per branch, to be reinvested back into local community outreach.

There is a unique opportunity for growth, but only to those who act fast.

Ben Verdin, Head of UK Lending Product Strategy & Management, SBS