Why Leeds Building Society is looking to expand its branch network as banks close theirs down

The society did close four branches in 2020 but has since opened two new sites.

The approach comes in contrast to the general approach of high street banks, whose bosses were recently called to give evidence in Parliament about the string of recent closure announcements as customers are increasingly pushed towards online banking.

Mr Fearon said: “We’ve taken the decision simply because for us they are very popular.

"In recent years we have opened new branches in Bournemouth and Edinburgh and they have been very successful.”

He said more than half of the £2.1bn placed into savings by LBS customers during 2022 had been done in branches.

He added: “We are investing in the future and we are a modern business that invests in technology.

"One in five of our colleagues works in tech in one way or another but we want to maintain that branch network.

"We have no plans whatsoever to close any branches and we are looking across the country as to whether there are possible opportunities to open a new branch.”

He said the chance to have face-to-face conversations in branches is welcomed by customers.

"The fact we provide that option and they can take their time and speak to a person is incredibly important to them. I regularly go out to visit branches and the feedback on the service and the personal touch comes back time and time again.

"The customers can get a really competitive rate too so what is not to like?”

As part of LBS’s net zero ambitions, it is intended that all branches will be powered by renewable energy in the coming years.

Mr Fearon said: “We will be stripping out all of the gas power out of our branch network and replacing it with green electricity.

"We have already done that here in head office and it is a very energy efficient building.

"We will continue to do that throughout the branch network.”

Another part of the society’s environmental strategy has seen the introduction of ‘Green Mortgages’ to make it easier to buy an energy-efficient property.

Using detailed data about projected fuel bill savings for new build homes with an A or B Energy Performance Certificate (EPC) rating, it enables customers to borrow more compared with an equivalent, less energy efficient property.

Mr Fearon said: “Climate is something we care deeply about and we’ve offered some really innovative products.

"One of them was mortgages that take into account the energy efficiency of a property and people can get a bigger mortgage because of that.

"I think we were the first lender to do that.”

Separately, the company has announced it is extending its suspension of all mortgage arrears fees until at least the beginning of 2024.

Mr Fearon said of the decision: “Our mutual status, which makes us ultimately answerable to our customers, enables us to go further in supporting our members when they need it most.”