Britain’s biggest high street lenders have pledged to upgrade dozens of shared banking hubs and commit to more than 100 new locations amid a growing political row over access to cash.
Sky News has learnt that Bim Afolami, the City minister, convened a group of industry stakeholders and MPs on Monday to discuss urgent improvements to roughly 40 existing hubs across the country.
The banks have now pledged to identify 225 locations for hubs by the end of the year, up from 11.
The facilities are designed to enable continued consumer access to cash amid a deluge of bank branch closures across the UK.
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According to a person who attended the meeting, the main high street banks, including Barclays, Lloyds Banking Group and NatWest Group, committed through their trade association to offering bereavement services, fraud protection and debt advice at the hubs.
They also pledged to open on Saturdays and to enable consumers to use the services without requiring their own mobile devices, according to a person briefed on the talks.
Saturday pledge
“The minister was clear that people depend on these services and wants to ensure they get the possible banking offer,” they added.
MPs including Anna Firth, the member for Southend West, and Keir Mather, Labour MP for Selby and Ainsty, are understood to have attended the meeting.
The government has introduced legislation to preserve access to cash, although Labour has said it would go further by guaranteeing the opening of 350 hubs that would provide face-to-face banking services.
City minister Bim Afolami wants to ensure people get the possible banking offer.
Industry sources say that one complication has arisen from Nationwide’s commitment to maintaining its branch network, because the hubs are designated for locations where there are no remaining bank branches.
Rule amendment push
However, Nationwide does not offer a full range of business banking services, making it harder for local small and medium-sized enterprises (SMEs) to deposit cash, according to industry sources.
Some are now pushing for the rules to be amended to enable hubs to be recommended in these locations.
Roughly 100 hubs are expected to be opened by the end of the year, up from 40 currently.
Mr Afolami told Sky News: “Access to banking services is an incredibly important issue for many people.
“On Monday I brought together UK Finance, LINK, Cash Access UK and the FCA to hear directly from MPs about their constituents’ experiences, and for the industry to set out how things will be moving forward in the future.”
Natalie Ceeney, chair of Cash Access UK, said: “We’re pleased with the ongoing rollout of new banking hubs, with 40 up and running so far, and with new hubs opening this week in Wellington (Somerset), Royal Wootton Bassett (Wilts) and Stapleton (Greater Manchester).
“We expect to have 100 open by the end of the year as we ramp up our deployment.”