Why the loss of bank branches is ripping heart out of communities: Greg Wright
Face-to-face meetings will always provide the best means of building trust. Take banking, for example. Even in an era dominated by virtual transactions, millions of consumers would still prefer to discuss confidential financial matters with a trusted professional who is based locally; ideally within walking distance of their front door.
That’s why the opening of a new banking hub, in Ilkley, has been universally welcomed by locals.
Ilkley’s banking hub was recommended by LINK, the UK’s ATM network, following the closure of the town’s last remaining bank branch.
At the official opening, Robbie Moore, the Conservative MP for Keighley and Ilkley, highlighted that the new hub would play a vital role in supporting the local high street, elderly residents and those who rely on cash.
But he believes more should be done. He told me: “Right now it is far too difficult for a town such as Keighley (which is around 11 miles from Ilkley) to be recommended for a full banking hub until all its bank branches have closed.”
The Treasury said it is working closely with industry to roll out 350 banking hubs by the end of this Parliament.
The spokesman said that 225 have already been opened with agreements in place to open 275, “protecting in person banking services across the country”.
There’s no question that financial services are undergoing revolutionary change. According to the Financial Conduct Authority, 93 per cent of adults banked online or used a mobile app in 2024, up from 77 per cent in 2017, while, 26 per cent of UK adults used a bank branch in the 12 months to May 2024.
It’s important that policymakers listen to Britain’s dedicated followers of high street banking services, who are often vulnerable and in need of extra help.
The Financial Services and Markets Act 2023 provides the FCA with powers to ensure “reasonable provision” of cash withdrawal and deposit facilities, including free facilities for consumers.
Cash Access UK, the organisation set up to protect access to cash across the UK, stressed that banking hubs are providing services for communities across the UK, including 28 in Yorkshire. There are now 12 hubs open across West Yorkshire with another in progress in Morley.
At least one financial services company in Yorkshire is doing its bit to protect consumers who cherish physical branches. Ecology Building Society has announced the opening of first-ever branch in Porth, Wales as it “seeks to show the way in restoring essential banking services to abandoned communities”.
From April 20, the mutual, which is based in Silsden, West Yorkshire, will be offering face to face support to customers in Porth, where the last bank branch closed eight and a half years ago.
According to Gareth Griffiths, the CEO of Ecology, the ripping out of banking facilities from the UK’s high streets leads to more than just the denial of access to cash and customer service. There is also a loss of trusted spaces, stability and a sense of connection. Mr Griffiths says the new branch heralds the start of a national network for Ecology. Many consumers will cheer the mutual as it prepares to buck a damaging trend.
Greg Wright is the deputy business editor of The Yorkshire Post