Barclays has introduced it’s set to shut extra branches in 2023 and GlobalData surveying suggests this may occasionally considerably have an effect on its skill to succeed in insurance coverage clients.
As per GlobalData’s 2022 UK Insurance coverage Client Survey, 18.2% of non-life private insurance coverage merchandise offered by way of banks had been bought head to head, making it the third hottest technique of buy by means of the channel. On-line by way of a PC/laptop computer is the popular technique of buy (30.5%), adopted by on the telephone (25.0%).
Barclays has introduced it is going to shut 14 branches in June and July 2023, along with 41 department closures already introduced this yr. Its rationale is that extra clients are switching to on-line banking, notably after the COVID-19 pandemic accelerated digital transformation inside the trade. Nevertheless, with 18.2% of shoppers buying private insurance coverage merchandise head to head, this may occasionally considerably hurt banks’ skill to succeed in clients.
As well as, older generations usually rely extra on face-to-face interactions with banks than their youthful counterparts. Insurance coverage suppliers are always making an attempt to innovate and adapt to maintain up with the wants of youthful generations. Nevertheless, this can lead to older generations feeling left behind. If older people are usually not happy with the person expertise of on-line banking platforms and can’t entry a department regionally, they might take their insurance coverage enterprise to a unique channel.
In the meantime, the closure of financial institution branches can even impression SMEs. Branches function a supply of credit score for SMEs, whereas smaller companies in lots of sectors require money dealing with services. Such companies might undergo from strikes equivalent to Barclays’. As per GlobalData’s 2022 UK SME Insurance coverage Survey, 8.8% of SMEs buy insurance coverage by way of money or cheque.
General, the closure of financial institution branches might result in much less insurance coverage bought by means of the financial institution channel. Banks should guarantee their websites are simple sufficient for older generations to navigate if they’re to retain enterprise that was earned head to head.
