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If you’ve got a TSB bank account, you may wish to explore your options in the new year. That’s because the bank has announced another round of branch closures. Little over a year ago, customers could choose from 475 branches: that number is going down to 220 in 2022.

Where are the affected branches?

TSB’s latest plans are to close 70 branches in the new year, 18 of which are planned for April, with 26 in May and a further 26 in June.

Which branches close in April?

Aylesbury, Cambridge, Dundee, Elton, Forfar, Forres, Fort William, Kirkintilloch, Lanark, London Bermondsey, London Greenwich, London Harlesden, Rushden, Stranraer, Taunton, Thurso, Wimborne and Yeovil.

Which branches close in May?

Bishop’s Stortford, Bromley, Bury St Edmunds, Camberley, Colchester, Ealing, Eastbourne, Gateshead, Horsham, London West End, Louth, Maidstone, Manchester Denton, Maryport, Morden, Nelson, Newton Aycliffe, Northallerton, Ossett, Redcar, Retford, Romford, St Helens Sutton, Swaffham, Tunbridge Wells and Uxbridge.

Which branches close in June?

Barnsley, Bath, Birmingham Longbridge, Cleveleys, Cirencester, Exeter, Gillingham, Liverpool Garston, Melton Mowbray, Morecambe, Newbury, Norwich, Nottingham Sherwood, Oxford, Redditch, Ross-On-Wye, Sheffield Woodseats, Shrewsbury, Solihull, Southend-on-Sea, Thornbury, Warrington Frodsham, Weston-super-Mare, Wilmslow, Winsford, Worcester.

Why is the bank doing this?

Essentially, the normal reasons cited by banks: restructuring their branch network; customers using digital platforms and alternative ways of accessing services, including cash machines and Post Offices. However, its own figures suggest that it has up to 2.8 million customers who don’t use online or mobile banking.

It’s also announced the expansion of its Mobile Money Confidence Experts services to 50 pop-up locations, up from 40 currently established. There are very limited services you can access, as these are typically based out of local community centres, so while a pop-up might cover some of your needs, it isn’t a fully banking service.

I don’t see my local branch on the list, does that mean it’s safe?

For now these are the only plans announced, but given we’ve seen closures in 2020, 2021 and now 2022 you’d have to be pretty foolish to think TSB were done. It had 588 branches in 2017 after all, and these changes will leave it with 220.

Who are the best alternatives?

That depends how you look at it. The big 3 players in the UK market are Lloyds, Barclays and NatWest. Between them they’ve got 3,131 branches across the UK. So the chances are relatively good they’d have a branch local to you. They aren’t averse to getting the axe out either, as that number is a big reduction compared to the 4,884 branches they collectively had in 2017. Another way of looking at that is Lloyds, Barclays and NatWest have closed the equivalent of three TSBs in as many years. Unfortunately, the trend is that smaller communities are the usual suspects when it comes to closures.

Most major high street banks have undertaken significant branch closure programmes over the last few years. The exception to the rule is Nationwide Building Society, which has gone from 691 branches in 2017 to 646 branches today. So if recent history is anything to go by, Nationwide has the most stable branch network.

Is there another way to look at it?

If you’re not a frequent visitor to a branch but value the customer service they provide, you might want to take the opportunity to broaden your horizons. In the most recent FCA-mandated independent survey, the best banks for overall service quality were Monzo (83%), First Direct (81%), Starling Bank (81%), Metro Bank (74%) and Nationwide (68%).

For context, TSB were rated a lowly 14^th in the survey, coming out with a score of 52%.

Of the top 5, only Metro Bank and Nationwide have a branch network. Metro Bank’s 77 branches are predominantly located in the South East and around major population hubs. So if you were thinking about making the switch, it’s worth keeping in mind.   

Looking for more bank switching help? See our article outlining eight questions to ask before opening a current account.

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Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

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Even in comparison to their young millennial counterparts, Gen Z’s characteristics are different in many ways. Born between 1996 and 2010, Gen Z is anywhere between 11 to 25 years old in 2021. They account for about one-third of the world population and have an estimated spending power of $143 billion. Not to mention they’re also on their way to inherit billions more in the next decade.

A couple of Generation Z’s characteristics, like their close relationship to their phones, are obvious to spot from the outside. But what we don’t see as easily, such as their financial habits and mindset, are to redefine our world in the next five to ten years.

Here is a rundown of Gen Z’s financial habits and what to expect in the next five years as they grow into their own and take the financial world by storm. 

Gen Z money habits

The straightforward truth is that Gen Z are stressed about money. Many of them are entering the job market in a highly volatile market, and a recent study showed that 72% of Gen Zers reported experiencing pressure when it came to their financial futures. 

The anxiety that they feel means that, even at a young age, Gen Z are regularly thinking about money and are conscious about their financial future. Perhaps as a result of this, they’re known to be the most financially savvy generation yet, and fiercely budget as a result. A study by Clearpay shows that ​​63% of Gen Z are saving more each month than when their parents were the same age. In addition, they view debt as very bad and go the extra mile to avoid it. Instead, many of them are involved in side hustles to supplement their savings. 

Gen Z investment habits 

Independent and extremely tech-savvy, Gen Z care deeply about their financial futures and invest early. With phones attached to their hands at all times, they’re in tune with financial news, check their portfolios regularly and care about the social and environmental initiatives of the companies they invest in more than older generations. 

When it comes to investing, Gen Z are very risk-tolerant. They’re the first generation to be investing so early and independently, and a study by Barclays shows that nearly half of these young investors plan to invest short term (between 2-5 years) and are making speculative investments. They also may be over-investing in hopes of maximising their returns; 59% report that a substantial investment loss would have a fundamental impact on their future or current lifestyle.

Gen Z banking habits 

It may come as no surprise to you that Gen Z prefers digital, easy and quick solutions to their banking. They are a mobile-first generation and are contributing to the decline in bank branch networks all over the world. As the leaders of using digital solutions, they are nearly three times more likely to use banking and investment apps in comparison to older generations (59% vs 19%). In addition, although Gen Z are very avoidant of debt, they are 50% more likely to use “buy now, pay later” schemes such as Klarna and Payl8r in comparison to older generations, 

How Gen Z will affect the world of finance 

This tech-savvy, early investing generation will only continue to make up a larger and larger portion of consumers and investors in the next five years. As a result, here are a couple of things you can expect: 

• Fintech will grow tremendously in order to keep up with Gen Z’s demands. Merely digitising current experiences won’t drive growth. Offering brand new, innovative and cheap banking/investing solutions will be key;
• Physical branches will have less and less importance for banks;
• Contactless payments and “buy now, pay later” systems will become more popular;
• Gen Z will likely be the most investment-savvy generation yet as their experiences at a young age will set them up for success in their futures. Most are likely to manage their investments themselves;
• Because Gen Z’s environmental and social concerns are high, companies will have to show more than just good financial returns in order to retain Gen Z’s investments and business. 

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Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

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Making money while tucked up under my duvet sounds pretty good to me. Fortunately, the stock market offers what I consider to be the easiest way of doing this. 

The BT (LSE: BT.A) share price has been on a bumpy ride this year. After dropping to a low of around 120p at the beginning of February, the stock rallied above 200p in mid-July. The shares then plunged in value, falling to a low of 135p.

Since then, the BT share price has been pushing higher. It is currently trading around 173p after recovering from most of the losses in the third quarter. 

Overall, over the past 12 months, shares in the telecommunications giant have jumped around 25%. However, I think there are three reasons why the stock can continue rising over the next few weeks and into 2022. 

BT share price: takeover potential 

The first reason I think the stock can continue rising is the bubbling takeover talk surrounding the business. Ever since French telecoms billionaire Patrick Drahi bought a 12% stake in BT over the summer, speculation has been swirling in the city that he will make a full offer for the company. 

In reality, I think it is unlikely such an offer will emerge. BT is a sprawling giant with a multi-billion pound pension deficit. Untangling the enterprise and managing these pension assets would be a hugely complicated process. These challenges are likely to put off buyers. 

What’s more, it is highly likely the government will interfere in any deal due to the national importance of the company and its influence over the UK’s communications network. 

Having said that, speculation of a potential acquisition could be enough to continue to push the stock higher. Drahi’s interest supports the idea that BT looks cheap. Considering his success as an investor, other market participants may want to ride his coattails and buy the stock. 

Reorganisation potential

As well as takeover speculation, investors may continue to buy BT as the corporation pushes ahead with its restructuring plans. This year, the group has undergone somewhat of a significant transformation. It is spending more money on its core telecoms business, focusing mainly on improving fibre connectivity around the country. 

At the same time, management has been trying to restructure non-core divisions, including the group’s pay-TV business. 

This has been a drain on the company for several years. BT’s pay-TV arm, which includes BT Sport, initially set out to capture a large share of this market by offering consumers an all-in-one package. Customers can bundle pay-TV, broadband and phone packages together in a straightforward package. 

Unfortunately, the division never lived up to management’s lofty expectations. Moreover, BT Sport became entangled in an arms race with Sky over sporting rights. The price these competitors were willing to pay to gain exclusive streaming rights for sporting events skyrocketed, and their returns plunged as a result. 

BT is now trying to untangle this business. It has agreed on a £600m deal with  streaming company DAZN to co-operate on a streaming sports business. There is also speculation that Discovery, the US media group which owns Eurosport, is in talks with BT about a joint venture for its sports businesses.

This initiative will allow the company to spend more time focusing on its core business model. It could also reduce losses and improve the offer for customers. 

Overall, I think the reorganisation of this business model will help improve the organisation’s sales and profitability. This is likely to lead to a higher share price when the benefits start to show through on the company’s bottom line. 

The undervalued BT share price 

The third and final reason why I believe the BT share price can continue to climb is the fact that the stock currently looks undervalued. 

Before the pandemic and the launch of the company’s new growth initiatives, the group was struggling. Net profit slumped from £2.5bn in 2016 to £2.2bn for 2019. Income has fallen further since, with the company reporting a net profit of £1.5bn for its 2021 financial year. 

This is expected to be the low point for the enterprise. Thanks to the company’s focus on customer service and network expansion, sales and profits are recovering, albeit at a relatively slow pace. 

According to the City, net income will hit £1.8bn for the company’s current financial year, rising to £2bn in fiscal 2023. 

Based on these projections, the stock is currently trading at a 2023 price-to-earnings (P/E) multiple of 8.5. This suggests the corporation is deeply undervalued at current levels. Historically, the BT share price has commanded a P/E of around 11, indicating the stock could have significant upside as the group continues to push ahead with its restructuring and growth plans. 

I think a profit recovery will be the catalyst that causes the market to take another look at the business. The company’s dividend is also returning this year. For the current financial year, analysts have pencilled in a dividend per share of 7.5p, giving a yield of 4.4% on the current stock price. 

This level of income is incredibly attractive for income investors in the current interest rate environment. 

Bumpy road ahead

However, I do not believe it will be plain sailing for the group from here on out.

The company faces a range of challenges. These include fighting off competition to meeting regulators’ demands for increased broadband connectivity across the UK. 

The group also has a lot of debt on its balance sheet. The cost of this debt could increase substantially if interest rates rise, which would impact overall profitability and hold back growth. And finally, the company has a multi-billion pound pension deficit. Management will have to find the cash to fill this gap. 

Still, despite these risks and challenges, I would be happy to buy to stock for my portfolio today, considering its growth potential and current valuation.

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The Financial Conduct Authority (FCA) recently amended its stock market listing rules in an effort to encourage more companies to go public in the UK. The new rules officially came into force on 3 December.

So, what are the rule changes? And more importantly, what could the new listing regime mean for investors? Let’s find out.

What are the FCA’s new listing rules?

According to the FCA, the new rules are based on recommendations made in Lord Hill’s UK Listing Review and the Kalifa Review of UK Fintech. They are mostly aimed at companies planning to go public in 2022.

They include:

• Allowing a targeted form of dual-class share structure within the premium listing segment. Dual-class shares tend to be quite popular among founders. This is because it gives them additional voting rights and essentially allows them to retain more control of their companies.
• Increasing the minimum market capitalisation threshold from £700,000 to £30 million. This will apply to both the premium and standard listing segments for shares in ordinary commercial companies.
• Reducing the number of shares an issuer is required to have in public hands (i.e. free float) from 25% to 10%. This change, like the one for dual-class share structure, gives founders more control over their companies. It may also allow them to list their companies earlier.

The new rules follow others that were implemented in August 2021 to make it easier for special purpose acquisition companies (SPACs) to list in London.

What do the new listing rules mean for investors?

The new listing rules could lead to an increase in investment opportunities for investors.

It is a well-known fact that many companies have previously been turned off from floating their shares on the London market due to its strict listing rules. The lack of dual-class shares for the premium segment, for example, has driven many tech companies away from London to other markets such as the US, where this particular feature is quite common.

But things could change with the new rules and more firms may now choose to conduct their IPOs in London. This could give investors a greater choice of stocks to add to their portfolios.

Clare Cole, director of market oversight at the FCA, said: “These changes ensure the UK’s markets maintain their reputation for dynamism, helping support the new types of companies seeking the investment that drives economic growth and by giving investors more choice with appropriate protection.”

However, with more opportunities comes the need for extra caution among investors.

Speaking to Capital.com, Russ Mould, investment director at AJ Bell, warned that: “Dual-class share structures and a lower free float may tempt more entrepreneurs to London but it may tempt more charlatans as well, and in the process raise the risk of poor governance costing investors their hard-earned savings.”

He suggests that a string of successful IPOs may tempt investors to let their guard down and possibly put their money in questionable companies.

Therefore, as much as there is a promise of more opportunities under the new rules, investors will still need to do their due diligence before putting their money into any company to avoid getting burned.

How can you invest in the UK stock market?

Do you wish to start investing in the UK stock market and potentially capitalise on the new opportunities that are likely to come with the new listing rules? It’s quite simple to get started.

All you need to do is to open an online share dealing account with a reputable provider. We’ve created a list of top-rated providers of shared dealing accounts in the UK to help you narrow down your options.

If you plan on investing an amount of up to £20,000, consider investing through a stocks and shares ISA. Any returns from investments made within a stocks and shares ISA are usually tax free.

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Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

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