Gen Z and Millennials Outpace Older Generations in UK Bank Branch Visits

New research from RSM UK indicates that Millennials and Gen Z are significantly more likely to visit physical bank branches than older generations, challenging the assumption that digital-native cohorts have abandoned face-to-face banking. For fintech professionals, this suggests that the physical footprint remains a critical touchpoint for cash-heavy transactions, even as digital adoption accelerates across the United Kingdom.

What was announced

The study conducted by RSM UK reveals a notable generational divide in banking habits that contradicts common industry narratives. According to the findings, approximately 35% of Millennials and 34% of Gen Z have visited a physical bank branch within the past month. In contrast, only 21% of Gen X and 23% of Baby Boomers reported a similar visit during the same timeframe. This data suggests that younger consumers are currently the primary drivers of branch footfall in the UK.

The research highlights that traditional banking activities are the main reason customers continue to use physical locations. Paying in cash was the most frequently cited reason for a visit, accounting for 29% of branch users. This was followed by withdrawing cash at 22% and paying in cheques at 17%. Conversely, more complex or digitally-integrated services saw much lower demand in person; only 8% of respondents visited for assistance with mobile or online banking, 7% to open a new account, and just 4% to discuss mortgage options.

Despite this continued reliance on physical infrastructure, the shift toward digital-only banking remains a significant factor in the market. Approximately 4.2 million UK adults now use a banking provider that operates without any physical branches, while 4% of consumers claim they have never visited a branch of their current bank. The report notes that while some major institutions, such as HSBC and Barclays, continue to invest in their physical networks, the industry is increasingly focused on how these locations complement digital offerings.

"It would be easy to assume that younger, digitally savvy customers have little use for bank branches, but our research suggests the opposite. Gen Z and Millennials are more likely to have visited a branch recently than older generations, showing that physical banking continues to have relevance alongside digital services."

Hugh Fairclough, partner and head of financial services at RSM UK.

The companies involved

RSM UK is a leading provider of audit, tax, and consulting services, operating as a major player in the British financial services landscape. The firm provides strategic advice and regulatory oversight to a broad spectrum of clients, ranging from high-growth fintech startups to established global financial institutions. As a member of the RSM International network, the UK arm leverages global data to inform its local market analysis. Within the UK, the firm is particularly active in interpreting how shifting consumer behaviors and regulatory changes impact the operational strategies of banks and lenders.

Hugh Fairclough, a partner at the firm, leads the financial services division, which focuses on the intersection of traditional banking infrastructure and emerging digital trends. The firm’s position in the market allows it to act as an intermediary between the technical requirements of financial reporting and the practical realities of retail banking. RSM UK has established a significant presence in the industry dialogue, frequently contributing data-driven insights into the health and direction of the UK’s financial sector.

What FF News has reported before

FF News has previously tracked RSM UK’s extensive analysis of the UK financial landscape, particularly regarding consumer protection and regulatory shifts. We reported on how RSM UK Urges Government to Link Pensions Dashboards with IHT to Protect Bereaved Families, highlighting the firm's advocacy for more integrated financial data systems. The firm’s internal growth has also been a point of focus, such as when RSM UK Bolsters Financial Crime Prevention with Appointment of Peter Hawkins as Partner, reflecting an increased emphasis on risk management. Furthermore, the firm has provided critical warnings regarding the pension sector, as seen in our coverage of how RSM UK Warns Strong Guardrails Essential for New DB Pension Surplus Flexibilities.

What this means

This data challenges the prevailing fintech orthodoxy that physical branches are a legacy burden destined for total extinction. While neobanks have successfully captured millions of customers, the persistent need for cash handling—driven paradoxically by younger demographics—creates a strategic dilemma for the sector. Traditional incumbents like Barclays and HSBC are under pressure to justify the high overhead of physical sites that are primarily used for low-margin activities like cash deposits. Meanwhile, digital-only challengers face an uphill battle in capturing the full primary account relationship if they cannot provide a frictionless way to handle physical currency. The industry must now determine if the branch is a service center or merely an expensive cash-processing hub.