Protecting access to cash is making an impact

Banking hubs are shared spaces where personal and business customers can access basic banking services and access to cash. The hubs have a traditional counter service operated by the Post Office, and community bankers from nine major high street banks operate on a rotating basis to provide support on more specific matters in a private space. Deposit services also allow small businesses to access and pay in notes and coins.

LINK conducts community assessments following the new rules following the announcement of the closure of any high street bank, a significant change in the hours or services provided, or when a member of a community requests it.  

Existing services will not be removed before the replacement services are in place. These changes are a direct result of the new rules.

Sheldon Mills, executive director for consumers and competition at the FCA, said: “The way we spend money is changing, and far fewer of us use cash day-to-day. We don’t want to stand in the way of change, but we do want to ensure reasonable access for those who continue to rely on cash. Our new rules are already having an impact, protecting vital services for communities across the country.”

The FCA’s 2022 Financial Lives Survey found that, while digital payments are popular, 3.1 million adults still use cash for everyday payments. The new rules are intended to ensure that individuals and businesses who rely on cash can continue to access it.

Adrian Roberts, Deputy CEO, LINK:  “This is an important moment for the millions of people across the country who either rely on or prefer to use cash on a regular basis. The new rules that have come into effect today are great news for consumers and businesses and will ensure that access to cash continues to be available on our high streets for years to come.”

Economic Secretary to the Treasury, Tulip Siddiq adds: “It is vital that people have access to cash, so I’m pleased to see the FCA’s new rules coming into force.

“I am also delighted to see the announcement of 15 new banking hubs, helping delivering on our commitment to roll out 350 banking hubs over the next five years. This will protect access to in person banking services and breathe new life into our high street.”

LINK has reassessed 182 previously announced bank branch closures where the branch has not yet closed its doors, under new rules in force today. As a result, the following communities will now have a Banking Hub delivered:

• Sidcup (London)
• Normanton (West Yorkshire)
• Hailsham (East Sussex)
• Frome (Somerset)
• Sheerness (Kent)
• Whitley Bay (Tyne and Wear)
• Rugeley (Staffordshire)
• Newquay (Cornwall)
• Market Harborough (Leicestershire)
• Thetford (Norfolk)
• Monmouth (Wales)
• Morecambe (Lancashire)

In addition, as a result of community requests received and assessed under new rules, the following communities will have a Banking Hub delivered:

• Harpenden (Hertfordshire)
• Huntly (Scotland)
• Yeadon (West Yorkshire)

The FCA rules now ensure that LINK can recommend banking hubs where there is still one bank or building society branch in town, where it might not meet the needs of businesses and consumers.

A more rigorous analysis is conducted to determine the full impact of branch closures or service changes on communities and businesses, and banks designated by HM Treasury do not close branches until the new services are ready. 

As part of the changes, LINK has updated its Cash Locator App and tool on its website to allow people to check for their nearest free-to-use cash access point including banking hubs and post offices.