Damian has released the following statement today:
MP Damian Hinds has launched a new residents’ survey to gather views on the future of banking services across East Hampshire following a series of local bank branch closures.
Many towns and villages have seen banking services reduced in recent years. Banks have closed on Alton High Street, while most recently Lloyds Bank shut its branch in Petersfield. Although many residents now bank online, access to in-person banking remains important for those who are digitally excluded, elderly, vulnerable, or dealing with more complex matters such as fraud, mortgages or business banking.
At present, from a regulatory perspective, communities are often judged to have sufficient banking provision if they retain access to cash through facilities such as a Post Office or cash machine, even where there is little or no access to face-to-face banking support or advice.
Damian said:
“It’s positive that people can use the Post Office for everyday banking, but many customers still aren’t clear about exactly what services are available to them there. At the moment, the system is unnecessarily confusing. Different banks have different rules for what their customers can do at the Post Office on withdrawals, deposits and cheque payments, leaving customers uncertain about what they can and cannot do. It also makes it more complex to advertise Post Office banking services.”
“For example, some banks allow cheque deposits at Post Offices while others, including Lloyds, do not. I would like to see clearer and more consistent arrangements across the board so consumers can bank with confidence.”
Banking hubs have emerged as one solution to the loss of local branches. These shared banking facilities allow customers from multiple banks to access face-to-face services in one location, with different banks operating on different days. Hampshire’s first banking hub was opened in Bordon following a successful campaign led by Damian.
However, banking hubs are currently approved based on recommendations from LINK, which assesses communities largely on access-to-cash criteria.
Damian added:
“The current criteria are too narrowly focused on access to cash rather than access to banking services. Neither Petersfield nor Alton currently qualifies for a banking hub, despite both being sizeable market towns with many personal and business customers.
“That means people are often forced to travel considerable distances for more complex banking services. I will continue pressing the government for changes to the criteria so that more communities can benefit from face-to-face banking on their high streets.
“I would encourage everyone to complete my survey so I can better understand how changes to local banking services are affecting people across East Hampshire.”
The survey can be found at: www.damianhinds.com/campaigns/keep-banking-services-local
ENDS
For more information: contact [email protected]
Notes to editors
· The government has recently announced an Access to Banking review chaired by Richard Lloyd (formerly of the FCA and Which?). The review is being conducted alongside the forthcoming Financial Services and Markets Bill, announced in the King’s Speech. Full terms of reference can be found here: Terms of Reference – Access to Banking Services Review - GOV.UK
