Barclays is to open new branches and revive the banker’s role in the return of the high street
Barclays is planning a major U-turn on the high street, with plans to open new branches across the country and bring back the once-familiar “banker” job title, a move that signals a sweeping rethink of how Britain’s traditional lenders compete in an increasingly digital age.
Vim Maru, who has led Barclays UK from 2024, told Business Matters that the bank aims to expand its branch network to more than 206 stores, as it has halted a closure program that has closed around 80 percent of its branches since 2019. many new sites will open.
The change comes as digital-only challengers like Revolut and Wise make aggressive moves into the current account market, threatening the hold of established banks on everyday consumer banking. Rather than trying to outdo them with technology alone, Maru is betting its chips on a combination of smart digital services and genuine, personal support, which it describes as a successful formula for modern banking.
He was candid about the shortcomings of automated customer service. Barclays customers, he stressed, will not find themselves stuck in an endless loop with a chatbot when they need real help. The bank has also quietly removed the names of traditional services, so that customers who walk in the door can also ask to speak to a branch or bank manager.
Maru stopped short of conceding that Barclays was too aggressive during its closure, but agreed that the bank needs to reassess how it serves its customers every few years. The new branches will remain close to, rather than replace, the locations of the participating banks operating through the Post Office.
Beyond the branch network, Barclays is pursuing growth in many areas. The bank reported a record number of home loan applications last year, with processing times reduced from 45 minutes to 15 minutes thanks to technological improvements that proved popular with brokers. Its acquisition of Tesco’s credit card business in 2024 and Kensington Mortgages, which has doubled in size since Barclays bought it in May 2023, has expanded the division’s reach significantly.
Artificial Intelligence is also being used to streamline internal processes, although Maru was cautious about the effects on staff. He compared it to the introduction of ATMs, noting that although the machines were expected to eliminate the role of tax payers, the subsequent increase in fraud and embezzlement meant that workers were re-employed instead of unemployed.
In the broader economy, Maru has provided limited learning on the bank’s unique position. Consumer spending showed resilience, with hospitality holding up well despite a period of heightened anxiety following the outbreak of the Iran conflict. In the early days of the war, there was a significant increase in fuel purchases as motorists rushed to fill up ahead of the expected price increase, although spending patterns quickly normalized.
With Barclays chief executive CS Venkatakrishnan committed to investing more than £30 billion in the UK between 2024 and this year, and despite ongoing speculation about a possible acquisition by Santander UK or TSB, Maru said the priority has been growth. The bank, he stressed, already has strong momentum – and a renewed high street presence to match.
