Gareth Walton, Head of EMEA Sales, Nextdoor
The digital age has seen banks leave the high street in droves, with nearly 1,000 branches having closed between 2023 and 2024 alone. No longer able to rely on physical branches as a visible reminder of their role in local communities, traditional banks must find new ways to maintain the loyalty and reputation built over 200 years on the high street. This is especially important as they enter a marketing landscape dominated by digitally native competitors such as Monzo and Revolut. One tool that should be central to their strategy is hyperlocal marketing, which allows them to continue building meaningful connections with their customers at a community level.
Staying connected in a digital-first world
A hyperlocal approach helps high street banks demonstrate their understanding of local financial needs and offer products that genuinely benefit the communities they serve. For example, banks could promote student current accounts in large university towns or highlight first-time buyer mortgage products in areas with a high proportion of young renters. Tailoring messaging and offers to specific neighbourhoods helps generate a sense of “fellow feeling.” When customers feel their local circumstances are recognised, they’re more likely to trust the bank.
Digital platforms, like Nextdoor, also offer banks a way to engage directly with local communities, joining the conversation and reinforcing their commitment to local economic growth. Even without a physical branch, high street banks can maintain a meaningful presence by supporting local initiatives or offering financial education workshops for the community.
Integrating tradition with innovation
The likes of Revolut and Monzo, often referred to as neobanks, have a head start over traditional banks when it comes to digital banking. As digitally native institutions, they enjoy a reputation for being agile and innovative. On the other side of this coin, traditional banks are often seen as conventional and slow to adapt.
As Gen Zs and millennials become key customer groups, their expectations – immediacy, personalisation, and frictionless digital experiences – are reshaping how banks should communicate with them.
High street banks can respond by using location-based insights to demonstrate responsiveness and relevance in real time, while also capitalising on their existing strengths. For instance, geo-targeted campaigns can deliver promotions for a specific time period, such as discounts with local retailers or cashback offers for spending at nearby businesses. By tailoring marketing messages to local economic conditions, and refreshing them regularly, traditional banks can highlight their adaptability.
Yorkshire Building Society, for example, used localised sponsored posts on Nextdoor to connect with users interested in the economy and managing their savings. Strategies like this help banks strengthen connections with existing customers while growing their reach in the community.
Welcoming transformation
While high street banks continue to serve as cornerstones of communities across the country, strong customer relationships are no longer built solely within physical branches. Embracing hyperlocal marketing can help traditional banks thrive in an era defined by rapid technological change. These strategies allow banks to meet the needs of an increasingly tech-reliant customer base while staying true to the trust and dependability that have long defined their reputation.
