High street “hubs” are set to replace closed bank branches.
Under plans announced today they will be run by the Post Office for customers to do basic transactions.
Staff from big banks will then come in one day a week to help customers with more in-depth queries.
The banks and building societies involved will share the running costs.
Two such hubs are already operating, in Rochford, Essex, and Cambuslang, South Lanarkshire.
Five more – in Acton, West London; Brixham, Devon; Carnoustie, Angus; Knaresborough, North Yorks; and Syston, Leics – are confirmed today. Many more are expected to follow under a landmark deal designed to counter the impact of widespread bank branch closures and the loss of many free-to-use cash machines.
An alternative could be for a separate counter in local post offices for people to do banking.
The set-up has been agreed through the Access to Cash Action Group which includes Barclays, HSBC, Lloyds Banking Group, Nationwide, NatWest, Santander and TSB.
From now on, if a bank in the CAG decides to close a branch, it will inform Link. The ATM operator will assess what the closure means for cash provision and the community as a whole and consider the best option. However, the measures will do nothing to stop branch closures which rose sharply in 2021 with 300 shutting between June and August.
Caroline Abrahams, of charity Age UK, said of the agreement: “This is arguably the most promising development we’ve seen in ensuring older people can continue to access cash.”
Anabel Hoult, of consumer group Which? added: “It’s good to see proposals that could make a real difference in securing cash’s future.”
There are 5,125 bank and building society branches left with 221 due to shut. Cash use is around 35% below pre-Covid levels.
'Not banking on it, but better than nowt'
- analysis by Graham Hiscott, Mirror Head of Business
Banks have embarked on a mass closure of branches and hubs could give them the green light to ramp up a cull of those left.
Faced with local opposition, they may have thought twice before.
These shared branches give them a get-out by slashing costs and allowing lenders to say they’re still there for customers who need them.
Hubs aren’t ideal, but they are better than losing a branch altogether and customers being forced to travel miles to their next nearest.
The alternative for many has been queuing at the post office behind someone sending a parcel, with not enough privacy.
They also provide a potential boost to high streets by filling empty stores – Rochford’s hub is in a former carpet shop – and bringing custom to other businesses nearby.
So, hubs are not ideal, and they are no substitute for having your own bank branch you can pop into any day of the week to discuss your financial matters.
But with banks, and most other firms and organisations for that matter, trying to get everyone to do everything online, they could prove to be part of the solution.
