Eight of these are in direct response to bank branch closures, and five have been recommended following the community's request for a cash review. They were all announced in March 2023.
It's hoped that new banking hubs will plug the gap left by bank branch and ATM closures in communities, providing a way for people to withdraw and deposit cash, as well as access everyday banking services.
Here, Which? reveals the locations of the new banking hubs, plus other measures that are in place to protect cash across the UK.
What are banking hubs?
Banking hubs involve banking providers working together to offer basic cash services in communities where bank branches and ATMs have closed, offering spaces for people to speak to their own bank.
The hubs feature a counter service operated by staff from the Post Office, where customers of almost any bank can withdraw and deposit cash, make bill payments and carry out other regular banking transactions.
There will also be private spaces where customers can speak to someone from their own bank for advice and support about more complex issues.
Banks provide staff on rotation, so there should be trained specialists from different banks available on different days.
Find out more:Banking hub locations
Here are the locations of all the banking hub locations announced by Link; however, only four of these have opened to the public so far – in Brixham (Devon), Cottingham (East Riding of Yorkshire), Cambuslang (Lanarkshire) and Rochford (Essex).
When will the hubs open?
While banking hubs can help to plug the gaps left by bank branch closures, they are not being made available quickly enough to the communities that need them.
For instance, hubs set to open in Acton (London), Carnoustie (Angus), Knaresborough (Yorkshire) and Syston (Leicestershire) in December 2021 have still not opened.
Cash Access UK, a not-for-profit firm set up by the banks to deliver hubs, says this is because ‘property availability in some communities can be limited, and legal arrangements that apply to commercial premises can be complex’.
It says, for example, that just one premises in Carnoustie had been deemed to be suitable, but it needed structural work and an asbestos survey.
Cash Access UK said the four hubs listed above are expected to open by the summer, but couldn’t give an exact date.
Find out more:Will your town get a banking hub?
When a bank closure is announced, it triggers an independent review by Link, which determines whether a new solution should be provided to meet the community’s cash needs.
It could commission services, such as a banking hub or better Post Office services, to meet the cash needs of the community as a whole – not just the customers of one particular bank or building society.
However, anyone can request a review of their community’s needs, including members of the public, elected officials and community groups.
Before completing a request form, you should check what cash withdrawal and deposit services are already available near you.
Companies and businesses can’t make a request under this service.
Following the review, Link may issue recommendations. Communities can’t ‘appeal’ a recommendation, but can ask for a reassessment in future.
Nick Quin, head of financial inclusion at Link, says it can’t recommend extra cash services in all communities, but if circumstances change (eg another bank nearby closes), a review can be requested after 12 months. He said: ‘This will always be about serving communities that need support the most, not those that shout the loudest.'
Find out more:What else can Link recommend?
As well as banking hubs, when a bank closes Link can recommend one of the following solutions:
New ATMs
Eight new ATMs have been recommended in response to bank branch closures, with two of these now operational in Bishop's Waltham, in Hampshire, and Blaby, in Leicestershire.
Five are due to open in England, in Holt, Holsworthy, Hythe, Newcastle upon Tyne and East Horsley. One is due to open in Ystradgynlais, Wales.
Cash deposit solution
Link confirmed to Which? that deposit services are primarily to support small businesses, and will be recommended where there is a higher demand for retailers to be able to deposit takings, or in places where the remaining bank branches don’t serve businesses.
Link has recommended deposit services in 38 locations to date, including large towns such as Bingley (Yorkshire) and Melksham (Wiltshire), which have populations of around 22,800 and 19,600 respectively.
Find out more:What else is being done to protect cash?
Several other initiatives are in the pipeline to help protect cash access:
Cash pilots
The Cash Action Group (CAG) is working with 12 communities to pilot ‘new cash services’. These locations will have standalone deposit and banking services in libraries and community centres.
The communities include:
Financial Services and Markets Bill
First announced in the Queen’s Speech in May 2022, the forthcoming legislation will ensure people can continue to conveniently withdraw and deposit cash.
This will be monitored and enforced by the Financial Conduct Authority (FCA).
With its new powers, the FCA could stop banks and building societies from closing services that provide cash access if there is no suitable alternative within a reasonable distance.
Find out more:Cashback without purchase
Launched in 2021, ‘cashback without purchase' allows people to request cashback over the till in their local convenience store without needing to make a purchase or pay a fee.
According to CAG, the average transaction values are far lower than at ATMs; around half of the withdrawals are less than £20.
Find out more:This article was first published on 7 September 2022, but has been updated since then. It was last updated on 4 April 2023, with information about new banking hubs.
source https://www.which.co.uk/news/article/new-banking-hubs-announced-to-help-cash-access-are-they-enough-adEmA2k7lQqE