Lloyds, Santander, Barclays and NatWest pledge to open 350 banking 'hubs' after wave of closures
Banking hubs are being rolled out to offset the impact of branch closures
PA
Lloyds, Santander, Barclays and NatWest are among the high street financial institutions that have promised to open 350 banking "hubs" across the UK over the next five years.
This pledge was given by bank bosses to the new Labour Government's City Minister Tulip Siddiq MP following the recent slew of bank branch closures that have swept the country.
Banking hubs are being introduced to offset the impact of branch closures in certain communities with Labour previously pledging to tackle the issue of "banking deserts" in its election manifesto.
These are shared banking spaces with are jointly operated by the Post Office and lenders with representatives from each bank working based on a daily rotation.
Despite major banks citing the move of customers to online services, financial institutions have come under fire for no longer offering adequate enough services to vulnerable groups at risk of being disenfranchised, such as the elderly.
Among the banks taking part in this initiative, which launched in 2022, are Barclays, HSBC, Lloyds, NatWest and Santander.
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City Minister Tulip Siddiq MP has been told high street banks will work to rollout 350 banking "hubs" across the country
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Despite this attempt to help peoples' access to cash services, Cash Access UK found that only 81 hubs are currently in operation with another 19 expected to open within this year.
As it stands, 230 banking hubs are set to open by the end of the 2025 as part of the agreement set by the banks and the Treasury with another 120 ideally open by 2029.
Through these hubs, customers will be able to making cheque payments, carry out cash deposits and withdrawals, and have an in-person interaction with their banking representative.
As well as this, Siddiq is lobbying banks to increase the wealth of their banking services on offer at these hubs.
She said: "Banking hubs are a lifeline for local communities that have lost their final bank branch.
"I’m confident that the banks will deliver on the commitment made today, as well as take a more active approach to meeting the needs of local communities.”
This latest move from the Government to save cash come following the revelation that 6,000 bank branch closures have taken place in the UK since 2015.
Consumer watchdog Which? claims that 60 per cent of the UK's branch network has been decimated over the last nine years.
Under new rules from the Financial Conduct Authority (FCA), cash access for consumers and businesses are looking to be protected going forward.
However, some banks and building societies have suggested that the Government and regulators are telling them to provide services that have never been offered, such as printing out the bank statements of customers.
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Bank branch closures are continuing at an 'alarming rate', according to Which?GETTY Sam Richardson, the deputy Editor of Which? Money, believes high street banks should come under tighter scrutiny from the new Government.
He said: "With thousands of bank branches closed in recent years, leaving communities all over the UK cut off from vital services, a commitment to speed up the rollout of more banking hubs is positive news.
"However, with only 81 hubs currently operational, the pace of delivery will need to increase substantially to achieve these targets - and based on recent history consumers could be forgiven for wondering whether these hubs will materialise.
"To ensure consumers feel the benefits of new hubs, the government must hold banks' feet to the fire to ensure they are delivering on these promises, so that those who rely on in-person banking services can access them locally when they need to."
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