HSBC cuts back counter service

HSBC insists overall service will remain unimpaired

HSBC is to cut counter opening times by two hours at a number of central London branches, in a move critics see as the beginning of the end of traditional branch banking.

This is the thin edge of the wedge

Eddy Weatherhill, Independent Banking Advisory Service

The move has been criticised by the Independent Banking Advisory Service, a banking consumer group.

The pilot study will restrict counter opening from 10.30am to 3.30pm in 16 branches.

The banks will remain open as normal, but when the counters are closed, staff will move into the foyer area to talk to customers.

First branches

From Monday, two branches - in Camden Town and Kentish Town - will be the first to take part in the pilot.

HSBC said it would like to provide customers with a more personalised service, and stressed that customers will be able to use automated machines to pay in cheques, get statements and withdraw cash.

It said customers may not be able to cash a cheque or get change during that time - and non-HSBC customers won't be able to pay bills.

But later on Wednesday morning, in an apparent u-turn, HSBC said it would not turn customers away and if someone needed to carry out a transaction which was only possible at the counter, it would make a position available.

A spokesman said the pilot was not a way of taking services away from customers, as staff will be out from the counters and talking to customers.

As well as dealing with queries, bank staff will be selling products such as mortgages, saving accounts, pensions and insurance.

Angry reaction

But the move has been greeted with some opposition.

Customers will have to rely on machines for service

Eddy Weatherhill, chief executive of the Independent Banking Advisory Service, a group which campaigns for better banking service, said: "I think it's appalling, it has gone backwards about 10 years.

"The reality is that customers need the branches to be open when they can use them.

"They are trying to drive people to use automated transfers and ATMs. This is the thin edge of the wedge."

Banking dilemma

Experts say that in the face of mounting costs, and cheaper telephone and internet alternatives, banks must increasingly justify the high costs of running branches.

Operating a telephone bank account is less than half as expensive as running a normal bank account.

Online customers are even cheaper, costing less than one tenth of normal branch customers.

Andrei Ilyin, a banking analyst at Nomura, believes that over time people will turn away from branches.

"The trend is quite clear. More and more people will probably realise they don't have to go to the branch."

"In 50 years time, I'm pretty sure no one will be banking in branches," he added.

Your comments:

I don't understand why in the UK we insist on coordinating retail opening hours with office hours: it makes no economic sense! Just as the workers are returning from work, the shops are shutting. The rest of the world seems to have realised this, so why can't we in Britain? Open later, shut later: it's simple!
Mike O, UK

As a middle aged, computer literate working woman I can manage fine with Atms internet banking and so on. But think about those who are elderly, visually impaired or otherwise struggle with technological advances. A friendly face at a counter is what they are used to and is probably what they want. My 80 year old father no longer uses an ATM out in the open. He gets his cash from a supermarket checkout, as he feels safer. How long before he moves his banking to the supermarket?
Carolyn Jones, UK

I think it's a good idea what HSBC is doing and there is no reason to complain
Stefan Koschek, UK

To be honest, I have never even seen the building that houses my 'Branch'. I receive excellent support by telephone which is much better for me. The only practical problem is paying cheques - if they could do that without me needing to queue in a bank, that would be even better.
Toby Braddick, Herts - UK

May be its just me but I prefer to pay money into a person rather than putting it in a machine.
Ian Featherstone, UK

I can bank at my desk, I have not had the need to go into a branch, for some two years now, as the cash machine at my station, serves all my cash requirements, and direct debit is the way forward to pay bills. It is inevitable that the branch network will have to diminish in size in the coming years.
Kai Chung, England

For most of the time, sure, branches are a burden. It's when you have a problem and you need someone to talk to, that's when a branch is invaluable. What is even better is when (as is the case with my bank) you have a named individual to contact - you can fix a problem in one or two goes without spending time restating the problem to someone at a call centre for the third time! I bank by phone, internet and branch, whatever's best - but the branch needs to be there.
Lewis Graham, UK

Since the automated machines have been installed, I avoid the counters whenever possible. If they limit the counter opening times, maybe more people will start to use the machines and socialise somewhere else instead.
Neil Lihgo, London, UK

I recently had an experience where I had to pay all my monthly bills and having a cash card only allows you to draw a specific amount of money - less than what I needed to withdraw. Although more funds were available in my account I was refused a counter service.
Martin, England

It is all very well for banks to reduce the number of branches, pushing customers towards 'online' banking, but this will exclude a high number of customers who feel the only way to do business is 'face to face'
Ian Morrison, Scotland

I use online banking and telephone banking from HSBC and hardly need to go into a branch. When I do, however, I do it in my lunch break or try after work. I don't mind them opening fewer hours as long as they open during lunch hours and say, between 5 and 7 in the evening.
Tom, UK

If this scheme helps to get people using automated machines for all the mundane taks, then it's a good idea in my book. I hate having to queue at the counter when in front of me people are simply withdrawing or paying in money - tasks that are easier and quicker at a machine anyway!
Ian Cowley, UK

Judging by the comments so far I assume most of the people are young and computer literate. So the old and not so well off will be left out again as usual.
David Harpin, uk

There are times when you need to talk to someone face to face rather than over the phone on on the Internet. Why can the bank not shut for two hours during the day and open earlier in the morning or later in the evening ? Its pretty rare that the bank is open when I need it. I dont work shifts just banking hours.
Fletch, UK

We are a country of whingers, aren't we? It is a simple matter of choice. If you are a "dinosaur" and choose to do your banking at a counter then expect to pay for it either by account charges or by lower interest rate returns. If you choose the telephone or the net you have lower charges or better interest. It is simple economics - you cannot have traditonal counter banking and low charges/high interest. So make your choice, after all HSBC are not saying you cannot bank here, they just give you a few rules that says do it at this time, not this. If you want to preserve traditional banks accept a few compromises.
Peter, UK

If the elderly and less advantaged need to use the counter service they have the time to get to the banks while they are open. For me, if the bank is closed outside my working hours then internet, ATM's and snail mail has to suffice - and the first two are a great improvement of the last.
David, Qatar (&UK)