Exploratory Spatial Analysis of Access to Physical and Digital Retail Banking Channels in the UK

In this study, we measured the distance from the centroids of 42148 small statistical areas of

the UK to the first and the second closest point of access to physical banking channels (ATM,

Post Office, branch). Secondly, access to digital banking was approximated from geographic

customer segmentation based on the distances to the nearest mobile base station and local

telephone exchanges. Exploratory spatial data analysis at both UK and regional level showed

strong spatial patterns; significant rural/urban clusters could be identified as well as a

North/South divide which we need to explore further. No significant association was found

between distance metrics and income and employment. Despite data limitations, the

indicators used in this study can be used to identify “the void” areas, as well as areas

vulnerable to the closure of the last points of access. We learned that the majority of the

infrastructure for access is no longer operated by banks. In this context, it becomes even more

critical to maintain and monitor a dynamic map of access and therefore we recommend more

transparency on location, capability and capacity of the points of access from all players, as

well as on broadband availability and quality from telecom providers. Retail banking access

should be treated as a joined-up system so that territorial coverage can be ensured, such that

entire communities are not accidentally excluded from participation in the economy.