When the last bank leaves town: rural communities must adapt to the rise of online banking and the loss of local branches

Last week I walked down a street in London and counted five banks that were open. Five. On one street. Yes, that included Coutts, but there were a further four high street banks within a three minute walk. Not something we are used to in North Dorset.
When Lloyds Bank announced 136 branches were closing across the country later this year, the list included Blandford Forum and Dorchester. By the end of 2025, of the five towns in North Dorset, only one will have a Lloyds. Two of the towns have no bank at all (apart from part time “banking hubs”).
What does this mean?
Between 2015 and 2024, more than 6,000 bank branches have closed across the United Kingdom. Barclays led the way with 1,226 closures, while NatWest currently stands at 900 closed branches. There are no Barclays branches in North Dorset: the nearest ones are located in Dorchester and Yeovil. Shaftesbury has a NatWest, while Gillingham will be home to the only Lloyds Bank in North Dorset by the end of 2025.
There’s no doubt that online banking and apps are on the rise, with more of us using them for all our banking tasks. It’s not just young people either – older people are also adapting to online banking. However, what happens to people who are unable to manage the technology, or who simply don’t want to use them but don’t have transport to get to one of the towns with a bank? Simon Hoare, MP for North Dorset said:
‘We’re at that transition stage, where banking apps are now more popular. Bank usage, and particularly the footfall – which is what banks measure to assess whether to close premises – is falling. The cost of running a bank building, with increased insurance, lighting and other overheads has also disproportionally increased. Of course, a lot of older people like to do their banking in person.’
Another reason for needing to visit a physical bank is to deal with a complex issue that is beyond the capability of an online chatbot or a telesales employee – for example, having to sign documents in person with a witness present, or dealing with a death. That’s when you need a human being with a bit of empathy instead of an automated response.

on 10th November, 2025
And then it goes wrong
Having online banking readily available at the touch of an app is winning due to its sheer speed and convenience for most people. Until the system fails … the recent Barclays three-day outage happened on the January payday weekend – also the deadline for self-assessment tax payments – and thousands of people were unable to access money or pay bills, leading some people even unable to buy food. The failure raised signifiant issues about the risks inherent in a cashless society and being over-reliant on electronic banking systems. Should we all have a bit of cash stashed under the mattress, just for an emergency?
There are also businesses that won’t accept cards and as many that won’t accept cash. Even more no longer accept cheques, instead demanding an online transfer – which can be awkward for those reliant on a chequebook, especially once work is completed.
There are other issues with bank closures, as Simon pointed out:
‘When banks close in market towns, local business is disproportionally affected. When people come into a town to bank, they often do other things such as visit a couple of shops – and that impacts wider footfall.
Rural market towns are under pressure and shop businesses are increasingly fragile. Meanwhile, Dorset has a disproportionately older population.
That’s not to say bank closures are limited to market towns – I can count three within minutes of the Houses of Parliament that have shut. However, the impact is felt most acutely in market towns because of their smaller size.
‘Given the strategic position of Blandford with the surrounding villages and those who depend on it, there’s a question about whether a hub would be a viable option for Blandford.’
A banking hub is a part-time facility which can be used by customers of any bank. It’s something Blandford councillors have been looking at and Simon Hoare is questioning. Hubs come to towns when the last bank standing has closed.

So, how many people could be affected by the loss of a bank in a town? In 2023, Age UK surveyed the banking needs of older people* and found that four in ten adults over 65 (equating to 4.09 million people) did not use online banking, and three-quarters of over-65s want to bank in person. Age UK also found that the groups least comfortable using online banking and who wanted physical facilities were the over-80s, people with disabilities and people on a low income … in other words, some of the most vulnerable people in our community. When facilities are removed, it also takes away the independence of these people to manage their own finances.
One of the reasons people give for wanting a physical facility for banking is a fear of being scammed, which is an increasing menace. Age UK recommend that the number of banking hubs is increased, and, critically, are put in place before a bank closes down. Also that banks do more to support the vulnerable. That’s exactly what is happening in Sherborne: according to Sherborne Town Council, the planned banking hub has not opened, as premises are still being finalised. As a result, Lloyds Bank is staying open until the hub is in place.
Finally, the loss of another bank is a sobering reminder to use facilities that are available to us – or lose them.
Age UK’s You Can’t Bank On It Anymore survey