Banks commit to more hubs as government demands improved cash access
The UK’s biggest high street banks have pledged to identify nearly 200 new places for shared banking hubs and upgrade dozens of locations after calls from the Treasury to improve access to cash.
City minister Bim Afolami met with representatives from the banking industry on Monday to discuss the government’s wish to expand access to in-person banking.
There are currently around 40 hubs across the UK, and banks have now committed to identifying locations for 225 by the end of this year.
City PM understands that Barclays, Lloyds and Natwest have committed through trade body UK Finance to offering bereavement services, fraud protection and debt advice at the hubs, as well as a trial to keep them open on Saturdays.
Banking hubs have become more prevalent on the high street as banks increasingly close branches in the shift to online services. They let customers of multiple banks access in-person services and deposit and withdraw cash.
The government has granted beefed-up powers to the Financial Conduct Authority in the Financial Services and Markets Act to ensure people can continue to access physical money.
However, Labour has said it would go further by guaranteeing 350 new hubs that would provide face-to-face banking services.
Cash Access UK expects roughly 100 hubs to open by the end of the year.
Afolami told Sky News, which first reported the story: “Access to banking services is an incredibly important issue for many people.
“On Monday I brought together UK Finance, LINK, Cash Access UK and the FCA to hear directly from MPs about their constituents’ experiences, and for the industry to set out how things will be moving forward in the future.”