In recent decades there has been a number of factors which have led to the increase in the number of people using safe deposit boxes.
This is down to political uncertainty, the aftermath of the 2008 UK recession, the lack of trust in the banks, Brexit… the list is endless.
Closure of banks
In 20 years we’ve seen a sharp decline of banks on the high street. According to ‘The Guardian’ there have been 4735 branches of UK banks which have close their doors since 2015. ‘124 jobs across the UK to be lost’ thanks to 64 branches being shut down. This rapid closure has been merited to the stark increase in online banking. Usage of online banks has increased by ‘27%’ since last year alone. This increase in bank closures and the vast number of bank closures have left people at their wit’s end. Forever wondering where they’re going to store their goods now that banks may soon become a thing of the past. This is where safe deposit boxes have stepped in. It allows people to securely store their property, without the intervention of high-street banks.
Increase in excessive spending
In recent years people have been more involved in excessive spending than previously. Investing in artwork, sports cars, fashion, etc people love splashing their cash. Instead of keeping their newly prized possession in their home property, people have begun to move towards safe deposit boxes. An area where there has been a phenomenal increase in spending is in the world of art. In 2021, Jean-Michel Basquiat’s- “Untitled” (1982), sold for a staggering £68 million when previously in 2004 it sold for £3.7 million. Believe it or not, this is only the tip of the ice burg. A piece of work by Andy Warhol – “Shot Sage Blue Marilyn” (1964) sold for $195 million only last month. This change In spending habits means that people are not wanting to keep their possessions locked up at home where they run the risk of an intruder trying to attack. Here at the Safe Deposit Centre we highly doubt that there will be any Basquiat’s or Warhol’s in storage but rest assured your valuables will be under our highest protection.
Online Banks Surge
Thanks to the growth of the internet, people have recently changed their relationship with banks. Companies, such as Monzo and Revolut, are fully online banks which function almost identically to high-street banks. You’re able to send others money, pay contactless and they even have no interest rates when travelling abroad. To highlight just how popular these companies have become since 2020 over £65 billion has been transacted through Monzo. In addition, since 2016 its revenue has increased from £2.3 million to £261 million. Because of this move online, young adults aren’t even bothering to set up physical accounts with banks. Therefore instead they are deciding to go with online banks instead. Therefore this may be another factor for the increase of safe deposit centres. People are deciding to stick online and give up on the high street banks.
The Ongoing Brexit Qualm
Political uncertainty has also certainly led to an increase in safe deposit boxes. Following Brexit, owners of gold in Northern Ireland have begun to take their assets to Dublin in an order to protect their valuables from the crash of the pound. “Over the last 6 to 9 months,” says Seamus Fahy, Co-Founder of Merrion Vaults in Dublin “we’ve seen demand in Northern Ireland increase in the region of 70%… they’re worried about a significant devaluation of sterling”. This reiterates the fact that although in times of unparalleled political confusion people are still putting their faith in safe deposit centres.
Get in touch
As it looks there is no slowing down in the increase of demand for safe deposit boxes.
Here at the Safe Deposit Centre, we have a wide range of box sizes available, both electronic and manual, to help suit whatever your needs are. Therefore if you’d like any more information about the centre visit our website or give us a call today on 0161 273 7487!