UK banks have recently agreed to set up 350 “banking hubs” to address the impact of branch closures that have taken place over recent years, according to the finance ministry. With the shift to online banking, many UK bank branches have closed down, affecting various segments of the population, including the elderly, people with disabilities, and small businesses, especially in rural areas. The decision to establish these hubs comes as a response to the challenges faced by communities that have lost access to their local bank branches.
City Minister Tulip Siddiq played a crucial role in securing the agreement for the rollout of these banking hubs over the next five years during a meeting with representatives from major high-street banks. Siddiq emphasized the importance of these hubs as a lifeline for local communities that have been impacted by branch closures, expressing confidence that the banks will work towards meeting the needs of these communities. The closure of 8,944 branches between 1986 and 2023 has significantly reduced the total number of bank branches in the UK from 14,689 to 5,745, as reported by official figures.
Consumer groups have raised concerns about the branch closures, particularly emphasizing the impact on individuals who still rely on cash transactions, such as the elderly. The closures, implemented by major banks including Barclays, HSBC, Lloyds, and NatWest, have prompted calls for more accessible banking services to be made available. Under the agreement, 230 hubs are expected to be operational by the end of 2025, with plans for an additional 120 hubs to be rolled out by mid-2029. These hubs will serve as small facilities offering various banking services such as cheque deposits, cash deposits, and in-person discussions with a “community banker”.
The introduction of banking hubs aligns with a manifesto commitment made by Prime Minister Keir Starmer ahead of the July election, signaling a proactive approach towards addressing the challenges faced by communities following branch closures. While the banks have agreed to provide essential services through these hubs, the provision of printers for customers to print statements has not yet been finalized. The finance ministry revealed that Siddiq received a commitment from the industry delivery body, Cash Access UK, to explore the feasibility of incorporating printers in the hubs to enhance customer experience and convenience.
Overall, the establishment of banking hubs in the UK represents a step towards bridging the gap created by the closure of bank branches and ensuring continued access to essential financial services for communities across the country. The commitment made by the banks to set up these hubs reflects a recognition of the importance of maintaining a local banking presence and catering to the diverse needs of customers. As the rollout of these hubs progresses over the next few years, it is expected that communities that have been impacted by branch closures will benefit from increased accessibility to banking services and support.
