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Global banking giant HSBC has announced its Blackwood branch is to close next year- prompting condemnation from politicians.

The branch, which is on High Street, is one of more than 100 across the UKto cease operating and will close its doors on July 25.

In a letter to Islwyn’s Labour Senedd Member, Rhianon Passmore, the bank said the decision “has not been taken lightly”.

The bank said usage of its branches by regular customers had fallen by 65% in the last five years, with a 50% reduction in footfall.

HSBC also said nine in ten customers now do their banking over the internet or telephone, with 99% of cash withdrawals made at an ATM.

The letter continued: “The rate of decline in branch usage has accelerated since the Covid-19 pandemic with no signs of recovering, with a number of branches now serving fewer than 250 customers a week.”

Ms Passmore said she is “bitterly disappointed” with the announcement and is looking to meet with HSBC’s Andrew Ferns to “review, revisit and reverse this decision”.

Ms Passmore continued: “Whilst I accept that many of us are banking more online, the physical presence of banks in the hearts of our communities is important.

“High streets needs public operations like financial institutions, whilst customers still want to be able to access face-to-face meetings with their banking institutions. 

“These banks should consider the public relations of closing physical branches whilst maximising their profits at the expense of their customers. What message does it send to our communities about how valued they are by these banks?”

Independent councillor Kevin Etheridge said he was appalled that no consultation had taken place.

Conservative Senedd Member Natasha Asghar, who represents the South Wales East region, also criticised the closure.

She said: “The impact of bank closures on businesses, the elderly and the most vulnerable should not be easily dismissed. Banks should respect and meet the needs of these customers by providing adequate services for everyone.”

Fellow South Wales East member Peredur Owen Griffiths also condemned the closure, in addition to the ones planned for Abergavenny and Pontypool.

The Plaid Cymru representative said: “Not everyone is familiar or comfortable with internet banking and not everyone is online. The digital divide in Wales is a real problem, especially when essential services like banking go online.

“This will force certain customers to travel further afield, at a greater cost to themselves, to do the things they could once do within their own community.

“Profits have been put before people by HSBC and that is a retrograde step.”

Customers at the Blackwood branch will see their accounts automatically transferred to the Caerphilly branch, which is on Cardiff Road.

In recent years, HSBC has closed branches across Caerphilly County Borough, such as in Bargoed, Newbridge and Risca.

Branches in nearby Cwmbran, Merthyr Tydfil and Newport are set to remain open.