UK banks roll back shared branches
The UK’s biggest lenders will support a new initiative to maintain cash access for communities across the country with five shared bank branch set to open next year.
The move follows a review of a number of different pilot programs aimed at maintaining access to cash services in hard-hit areas. Bank branches are closed In the century.
In a report released Wednesday, the industry-backed Cash Access Action Group (Acag) said tests have shown so-called “banking hubs” – branches that share run by the Post Office and lenders – proved the most popular approach. The centers have a collection of community bankers from participating institutions.
New joint branches will open next year at four locations in the UK – Acton, west London, Brixham in Devon, Knaresborough in North Yorkshire and Syston in Leicestershire – and one at Carnoustie in Angus, Scotland.
The initiative follows two banking-centric concept trials in Rochford in Essex and Cambuslang outside Glasgow, which began earlier in the year. They did originally extended until April 2023 and will now run indefinitely.
Lenders including Barclays, HSBC, Lloyds, NatWest, Santander, TSB and Danske Bank, as well as the UK’s largest construction organization Nationwide, have signed up for the scheme over the next two years.
Natalie Ceeney, Acag president, welcomes the expansion of the banking hub initiative. “We know that demand for cash is falling, but we also know that it continues to play a vital role in the lives of at least 5 million people in the UK – including some of the most vulnerable. in social.”
While the pandemic has accelerated the adoption of cashless payment technology, the difficulty in accessing cash in many communities also reflects long-term changes. The number of bank branches has fallen from more than 11,300 in 2012 to less than 7,000, according to the Office for National Statistics.
Their demise has raised concerns about certain groups, including the elderly and disadvantaged, who are still dependent on cash and are being forced to travel long distances. to access it or have to rely on a third party.
Branch closures have also resulted in a reduction in the number of ATMs, and the Acag report says free teller machines may be a more affordable and simpler solution for some places. Link, which operates the UK’s largest ATM network, has been tasked with assessing the needs of affected communities.
John Howells, chief executive of Link, said: “Our relationship with cash is changing but the UK is not ready to be a cashless society. “Free access to cash remains important to many consumers and communities.” As part of its cash access programme, Link will install 11 free ATMs in different communities across the UK.
To further increase access to cash, a law that went into effect this year allows people to use a “cashback” service at participating stores without making a purchase first. The rollout will reach 2,000 retailers by the end of 2021, according to Link.