It is a sad fact that the number of high street bank branches in local communities is diminishing. In East Hampshire, some have closed in recent months, including HSBC in Alton, and some are earmarked for closure later this year, e.g. Lloyds in Liphook. From the banks' point of view, these closures are necessary as there just aren't the numbers using them anymore to make the branches commercially viable.
Many of us now bank online or via our telephones and do so confidently. We therefore have little need to visit a physical bank branch. However, for those who choose not to use online or telephone banking or don't have the means to do so, branches remain an important way of managing household tasks, such as paying bills, or seeking advice on financial matters, such as probate and mortgages.
While I do not have the power to stop banks from closing their branches, I think it's essential that we campaign for decent alternative provision for those customers that need it. This could be maintaining the network of post office 'everyday banking' counters as a minimum and looking to extend the services they can provide to customers to try and fill the gaps left by branch closures.
We also need to look at the community banking hub scheme Cash Access UK - Home - this is a community service, run by Link on behalf of the banks, to determine areas that could benefit from a banking 'hub'. This is particularly relevant to those communities which no longer have a physical banking presence and may have to travel some distance to access a branch.
I have long argued for better banking facilities for Whitehill and Bordon so I was delighted to receive confirmation in May 2024 that the town has been recommended for a banking hub: a fantastic result! This was the culmination of many months of hard work with Link, supported by EHDC, so I'm delighted that the town will be getting the banking provision it needs. Work is already underway to source a venue for the hub and a community event will be organised following the election.
Financial Conduct Authority - consultation on Access to Cash (Dec 23 - Feb 24)
The FCA last year consulted on improving access to cash in villages, towns and cities. The consultation proposes a "new regulatory regime, which would require banks and building societies to assess and fill gaps, or potential gaps, in cash access provision that significantly impact consumers and businesses. " This could mean that banks would need to do a full assessment of the impacts of a bank branch closure on a local community before closing its doors for good. It's also looking at the criteria for deciding which locations are suitable for banking hubs and how the assessments should be carried out. This is an important issue for us in East Hampshire where we have seen many banks close across our towns in recent years, particularly in places like Bordon. I have responded to this consultation and my response can be found below.
