Local MP Alan Mak has proposed a new law to expand Britain’s network of Banking Hubs so that customers have more access to face-to-face banking services.
He spoke in the House of Commons to introduce his In-Person Banking Services Bill, which aims to build on the success of his campaign to deliver a Banking Hub in Havant town centre.
Over the past decade more than 6,000 bank branches have closed across the UK, restricting access to in-person banking.
In response LINK, the organisation that decides where Banking Hubs can open, has carried out more than 1,600 assessments in communities across the country.
This has led to 276 recommendations for new Banking Hubs, including in Havant. However, other communities such as Emsworth and Hayling Island never reach this stage and miss out completely.
Under current rules, communities are often deemed to have sufficient banking provision if there is access to cash, for example if there’s a Post Office or cash machine within one kilometre of the local high street.
Mr Mak’s Bill would change the law so LINK would have to consider access to face-to-face banking services – not just access to cash or cash machines – when deciding where Banking Hubs can open.
His aim is to ensure every town or village with a population over 10,000 is eligible for face-to-face banking services via a Banking Hub.
Mr Mak's Bill is supported by MPs across Parliament, plus organisations such as Age UK, the leading charity for older people, and consumer rights champion Which?
He said: "Conservatives put access to cash into law, and that’s made a real difference. Now we must go further and put access to face-to-face banking into law, so people can speak to a staff member in-person for help and advice."
He added: "My Bill is a practical, common-sense way to expand Banking Hubs into communities where they are needed, especially by small business owners, older people, people with disabilities, and people who are digitally or socially excluded.
"It builds on the success of the current Banking Hubs policy, commands support across Parliament, and ensures no community is left behind as banking continues to evolve."
"Too often, if there’s a Post Office or cash machine nearby, a community is judged to have sufficient access to banking services.
"But for many people, that is not enough. In our area I have secured a new Banking Hub for Havant, but coastal communities such as Emsworth and Hayling Island have been rejected due to the current narrow criteria.
"I want to change that by changing the law."
Caroline Abrahams, Charity Director at Age UK, said: "Alan’s Bill is an important step forward in protecting access to face-to-face banking services for older people.
"The ability to access in-person banking remains hugely important and, as branches continue to close, more people are being forced to travel further and find it harder to manage their money which is unfair and unsustainable.
"Banking Hubs are a positive development, but putting access to in-person banking services on a statutory footing, as this Bill proposes, would provide greater certainty and is very welcome for older people."
Sam Richardson, deputy editor of Which? Money, said: "Which? research has highlighted the scale of bank branch closures across the UK and the significant impact this is having on communities.
"Banks and building societies have closed 6,719 branches since January 2015, at a rate of around 53 each month. These closures disproportionately affect older people, people with disabilities and those who are less digitally confident, as they rely on in-person services to manage their financial needs.
"We support this Bill to strengthen the law to protect access to face-to-face banking, ensuring every community that would benefit from a Banking Hub can access one so that no-one is left behind."
