'This is crucial for elderly': Shadow Minister Robbie Moore pledges to campaign for new banking hubs

Mr Moore, the Conservative MP for Keighley and Ilkley, welcomed Ilkley's new permanent bank hub, adding: "This has been a long fought battle after all our high street bank branches in Ilkley were closed and over the course of this campaign I have met directly with the Chief Secretary to the Treasury as well as Cash Access UK and LINK on many occasions to try and get this over the line.

"This hub will ensure residents and businesses can continue to access vital in-person banking services and cash transactions which, as I have long made clear to the Government, are crucial for our high street, our elderly residents and those who rely on cash.”

Mr Moore thanked the teams from Cash Access UK, which is funded by the UK's biggest banks to provide shared services, and LINK for their work.

"But legislation also needs to change,’’ he added. “Right now it is far too difficult for a town such as Keighley to be recommended for a full banking hub until all its bank branches have closed. This means if you don't bank with the last remaining branch in town, you are severely disadvantaged. I will be continuing to push for the same level of service in Keighley."

Coun Jane Gibson, Ilkley Town Mayor, said it was important that local residents had face to face contact with banking staff, adding: “They need it for advice and that human touch..Bringing people into town is important; we have a very lively business community here. It’s not just about (access to) cash it’s about financial advice as well.”

A spokesman for Keighley Town Council said the council recognised the importance of having easy access to banking services in the town.

The statement added: “For the last two years the town council has hosted a Barclays Bank Community Hub in the Civic Centre, in the heart of the Town Centre. This provides access five days a week for customers in Keighley to access a range of Barclays banking services.” As more banks consider their future presence on the High Street, the town council is ready and willing to play its part to secure as much access to banking services in the town centre as possible.”

A spokesman for Cash Access UK said two more hubs are planned in Armthorpe and Mexborough in South Yorkshire.

The spokesman added: “ATMs are installed in banking hubs where there is a need and as recommended by LINK. For example, our banking hubs in Richmond and Wetherby both have external ATMs.”

The spokesman added: “While more people are comfortable using digital banking and payments, crucially they don’t yet work for everyone. It's vital therefore we continue to protect access to cash and banking services. The good news is that banking hubs are providing solutions for many communities across the UK including 28 across Yorkshire. They look and feel like a traditional branch, but serve customers from nearly all banks under one roof, meaning they can support an entire community. There are 230 open across the UK and in the locations we’ve opened, they are really popular and the customer satisfaction scores are very high.”

A Treasury spokesperson said: “We recognise the vital role that face-to-face banking plays for communities, which is why we are working closely with industry to roll out 350 banking hubs by the end of this Parliament. 225 have already been opened with agreements in place to open 275, protecting in person banking services across the country.”

Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely, the Treasury added. According to the FCA (Financial Conduct Authority), 93 per cent of adults banked online or used a mobile app in 2024 – up from 77 per cent in 2017. Meanwhile, 26 per cent of UK adults used a bank branch in the 12 months to May 2024.

However, the Government said it understands the importance of face-to-face banking to communities and is committed to supporting sufficient access for customers. The Financial Services and Markets Act 2023 provides the FCA with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities, including free facilities for individuals.

Firms are not able to close cash facilities, including bank branches, until any additional cash services identified as needed in a LINK assessment are available, the statement added.

There are now 12 banking hubs open across West Yorkshire with another in progress in Morley, a Cash Access UK spokesman said.

Gareth Oakley, CEO at Cash Access UK: “I’m happy to announce the opening of our Ilkley hub in its permanent home, ensuring crucial access to cash and face-to-face banking services for residents and businesses across the community."

Cash Access UK is funded by the UK's biggest banks, including, Bank of Ireland UK, Barclays, Danske Bank, HSBC UK, Lloyds Banking Group, NatWest Group, Santander, TSB and Virgin Money. These firms have come together to provide shared services available to all their customers.

LINK, the UK’s cash machine network, decides where new services are needed. LINK is an independent, regulated company with many years' experience in assessing communities' cash needs, the statement added.

LINK reviews the impact of every proposed branch closure by its member firms, the statement added.