Probe to assess which areas have been the most affected and whether to force banks to provide more face-to-face services after a clutch of closures
The government will investigate the impact of more than 6,700 bank branch closures across the UK. The Treasury probe will assess which areas have been the most affected and whether to force banks to provide more face-to-face services.
Richard Lloyd – former executive director at the consumer group Which? – will lead the Access to Banking Review and is expected to deliver his report by October.
He said: “It’s important to take stock of the impact that the big shift to digital services has already had and to understand the need for access to in-person banking in the future.
“I hope to hear from as wide a range of views as possible and welcome the Treasury’s commitment to taking action, should this independent review find evidence that new legislation is needed.”
It comes after the announcement of the Enhancing Financial Services Bill in the King’s Speech on Wednesday. Treasury said it would include powers to “act swiftly if the evidence supports intervention on access to banking services”.
According to Which? banks have closed 6,719 branches since 2015 and shared hubs have failed to fill the gap.
They contain a Post Office counter where customers can pay in and withdraw cash, deposit cheques and pay utility bills, while banks take it in turns to send their own staff to a private room in the hub, usually a different bank each weekday.
But only 234 hubs have opened since April 2021 and in its manifesto before the last election Labour pledged to open 350 by 2029.
Lucy Rigby, economic secretary to the Treasury, said: “We are supporting industry’s rollout of banking hubs, but we also need a clear picture of where communities are still losing out.
“This independent review will show us where the problems are and what further action may be required – and we will move quickly to legislate where the evidence shows it is needed.”