The UK’s banks are set to be forced to act on the constant closures as new rules come into force from tomorrow.
Hundreds of banks have closed this year alone, as the high street exodus continues. And last week it was revealed that there were several towns and small areas across the country that no longer have access to banks – or even case machines.
But this is all set to change, thanks to new rules coming into force from tomorrow that will force banking bosses to do something about so-called “banking deserts”.
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Announced by the The Financial Conduct Authority in June, banks and building societies will have to come together to figure out which local communities have no access to simple things like bank branches and cash machines – and plug the gaps.
A possible range of measures includes opening banking hubs, ATMs – including deposit ATMs – and Post Office facilities. They will also be bound by guidance given by cash machine network LINK, who will use its data to tell them where no cash machines or banks exist.
The FCA will be keeping an eye on the progress, and does have the power to issue fines to those not following the new rules. Since 2015, 6,000 banks have closed with the introduction of banking hubs in some areas helping to ease the burden.
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As of May 2024, it is thought that there are 30 areas in the UK that now fall under the “banking desert” label, with less than 6,000 bank existing across the entire country – and nearly 400 towns have been told in the last year that their last local bank will close.
A spokesperson for trade association UK Finance said: “An ever-increasing number of people are using telephone, mobile and internet banking and fewer people are visiting bank branches on a regular basis. Balancing this change in the way we bank means firms have to make difficult decisions about maintaining their branches.
If you are concerned about your local bank branch closing, please contact them and they will help you find the best alternative for your needs.”
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