Though information for the UK market is somewhat limited, according to Statista, in 2017 customers aged over 65 accounted for 10.8 million current accounts or 22 percent of the total market. That's a significant number of your customers.

In the US, savings account balances for customers aged under 35 average $8,362. For those aged between 65 and 74 the equivalent average is $54,089 and for those over 75 it is $42,291 according to the Federal Reserve Survey of Consumer Finances. Checking account balances display a similar trend with under 35s having an average balance of $1400, those aged 65 to 74 $7000 and those over 75 $7100. This would imply that older customers provide an important source of low-cost funds.

Are older customers more frequent users of branches and are banks currently relying on their unwillingness to switch financial service provider? Daytime tv is full of advertisements targeted at the over 65s. Are some retail banks missing a trick in not competing more aggressively for these accounts?

Why is location important in considering customer trends and requirements? Indeed, apart from remoteness and distance to alternatives, why might branches be considered more important in rural locations?

Of the 5.3 million UK adults who never use the Internet, 70 percent (3.7 million) live in rural areas. Only 26 percent of the adult population live in rural areas and according to the Financial Conduct Authority, 48 percent of adults in rural communities are aged over 75 or are less able to access services due to poor health or they do not access the internet most days. The equivalent figure for urban areas is 20 percent.

FCA research shows that rural dwellers are more likely to visit a branch. A breakdown of the way they access financial services shows that those in rural areas (45 percent) are more likely to use a branch regularly than adults in urban areas (39 percent). When they reviewed channel usage in the last 12 months there were significant differences in behaviour.

68 percent of rural customers used a branch in the last 12 months, 54 percent had banked online and only 23 percent had used a mobile app. In contrast 59 percent of urban customers had used a branch, 78 had banked online and 45 percent had used a mobile app.

Delivering appropriate services means fully understanding your customers' needs. What suits younger customers or those living in cities does not necessarily fit with the needs of senior rural dwellers.  

To date there has been little evidence of customers changing banks following branch closures. However, a strategy that pre-supposes the continued inertia of customers is a risky one.

In the long run removing customer choice and replacing the branch with delivery channels that are shown to be unpopular with a significant sector of your customers invites them to consider the alternatives.

The introduction of the Current Account Switch service by Bacs in 2013 has made it easier for UK customers to switch current accounts. Between then and 2019 5.3 million switches were made. In 2018, 930,000 switched. The numbers are still small in relation to the total volume of accounts, but the old idea of a 'bank for life' is certainly being challenged.