From branch closures to ‘debanking’ – Which bank faces the highest number of complaints?

Barclays was the financial firm most complained about to the ombudsman in the first half of 2023, according to new data, as the bank comes under fire for poor customer service, branch closures and so-called “debanking”.

Figures obtained by The Sunday Times showed the Financial Ombudsman Service (FOS) recorded 5,519 complaints about the lender between January and July.

Barclays has had more complaints than any rival in each six-month period since the second half of 2019.

Complaints about the other biggest banks – HSBC, Lloyds, Natwest and Santander – ranged between 3,199 to 3,994 in the first half of this year.

Barclays pointed out to the newspaper that only 35 per cent of complaints against it were upheld by the FOS, which is below average for the sector.

Many of the complaints concerned branch closures. Barclays has closed or plans to close 73 per cent (787) of its 1,085 branches since 2019 – by far the most of any bank during this period, according to Which?

The consumer group found London has seen 745 branches – or 58 per cent – close in the past eight years, with just 539 still operating.

The lender has echoed its peers in arguing that closures are driven by high operating costs and the rise of online banking, with Barclays noting that just three per cent of customers used only a branch.

To replace closed branches, it has created a Barclays Local network of some 300 pop-up locations, but these are not open as long or have as many services as a traditional branch.

The Sunday Times also reported case studies of botched Isa transfers and “debanking”. There has been a surge in complaints to the ombudsman about the latter issue in the wake of a row between former Ukip leader Nigel Farage and Natwest over the closure of his Coutts account earlier this year.

City A.M. has approached Barclays and UK Finance for comment.