The watchdog has said banks should consider the impact of bank closures on customers and said that where they are unable to meet the expectations of its Principles For Business guidance during lockdown measures, they should consider pausing or delaying new branch closures where possible, particularly where this could have a significant impact on vulnerable customers.

Yesterday, TSB announced it would be closing 73 bank branches and cutting 300 jobs while earlier this month, HSBC revealed plans to shut 82 UK branches.

The FCA said that if firms are considering new closures or advancing those previously announced during this period, it expects them to:

• Communicate with customers in a way that is clear, fair and not misleading to inform them of the closure proposals. Particular consideration should be given to the best way to make sure vulnerable and hard-to-reach customers are aware of the proposals and are able to contact the firm.
• Give customers clear information about how the firm can help them access alternatives during this period of national restrictions, for example support to use online banking.
• Where appropriate, engage with customers to understand their needs and properly consider how they will be affected by the proposals.