The Government has urged banks and building societies to retain in-person services as the UK braces for another year of sweeping branch closures.
Treasury minister Bim Afolami said in response to a question in Parliament: “It is imperative that banks and building societies recognise the needs of all their customers, including those who still need to use in-person services.
“The impact of branch closures must be mitigated where possible so that all customers, wherever they live, continue to have appropriate access to banking services.”
The UK is already set to lose another 189 bank closures in 2024, including 60 Lloyds branches, 47 Halifax branches and 34 Barclays branches.
Data from consumer champion Which? showed 5,791 branches have shut up shop since January 2015, at a rate of around 54 each month.
Mr Afolami was responding to a question from fellow Tory MP, Dr Neil Hudson, who asked the Chancellor what steps he was taking “to maintain appropriate banking access in areas with (a) closing banks and (b) poor digital connectivity”.
In his reply, he also pointed out that guidance from the Financial Conduct Authority (FCA) requires firms to consider the impact of planned branch closures on their customers’ everyday banking and cash access needs, and to provide reasonable alternatives.
He added: “This seeks to ensure the implementation of closure decisions is done in a way that treats customers fairly. Where firms fall short, the FCA may ask for closures to be paused or other options to be put in place.
“Alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking and via the Post Office or banking hubs.
“The Post Office allows personal and business customers to carry out everyday banking services at 11,500 Post Office branches across the UK, and banking hubs.”
Most major banks in the UK are taking part in the banking hub scheme, including Barclays, TSB, Santander, NatWest, HSBC, Lloyds, Nationwide, Virgin Money, Dansk, and Bank of Ireland UK.
Turning to the concerns about lack of digital connectivity, Mr Afolami said: “Access to digital services is key, which is why my colleagues in the Department for Science, Innovation and Technology are working with Building Digital UK (BDUK) to connect at least 85 percent of UK premises to gigabit-capable broadband by 2025, and for nationwide connectivity (at least 99%) to be realised by 2030.
“Over 80 percent of UK premises can now access gigabit-capable broadband, a huge leap forward from 2019, when coverage was just 6 percent.”
Check if your branch is on the list of 189 bank branches closing this year by reading our full list here.
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