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.
undefinedWhat 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 seven of these have opened so far.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 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.
Once it has reviewed your request, Link may issue recommendations. Communities can’t ‘appeal’ a recommendation, but can ask for a reassessment in the future.
Link says it can’t recommend extra cash services in all communities, but if circumstances change (e.g. another bank nearby closes), a review can be requested after 12 months.
Nick Quin, head of financial inclusion at Link, 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 ATMsA total of 12 new ATMS have been recommended in response to bank branch closures, with four of these operational in Bishop's Waltham in Hampshire, Blaby in Leicestershire, and Hythe in Kent. Five are due to open in England: Holt, Holsworthy, Newcastle upon Tyne, East Horsley and Norwich. Two are due to open in Scotland: Dunkeld and Falkland. 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 67 of these in total across the UK. You can spot the locations in our table. Find out more:What else is being done to protect cash?
Several other initiatives are in the pipeline to help protect cash access:
New law to protect access to cashFirst announced in the Queen’s Speech in May 2022, the new law ensures people can continue to conveniently withdraw and deposit cash, following the rapid rate of bank branch and ATM closures. face finesThe Treasury said the vast majority of those who live in urban areas will have access to free cash withdrawal and deposit services within one mile of where they live. Those in rural areas can expect the same services within three miles of where they live. If a service is withdrawn and a replacement service is needed, this should be put in place before the closure takes place. The FCA is due to consult on how to implement the new rules and expects they will come into force next summer.Find out more: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:
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 for 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 18 September 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