Shared banking hubs could ensure that those who need to bank in branch can continue to do so.
If you want to visit a local bank branch, you may find it rather more difficult than as was once the case.
Over recent years banks of all sizes have stripped back the number of branches they run, blaming the nation’s move towards handling more of our banking online.
Consumer champions Which? have been tracking these closures, and reckon that since January 2015 banks and building societies have closed or announced the closure of a whopping 4,299 branches.
That works out at around 50 per month.
The NatWest group ‒ which covers the likes of NatWest, Royal Bank of Scotland and Ulster Bank ‒ have been the biggest closers, shutting up shop in 1,086 branches in this period.
Now, a single branch closure doesn’t have to be a disaster.
If you live in a town with a host of bank branches, and you rely on banking in person, then you can always switch to one of the banks or building societies which maintain a presence in your area.
That isn’t always the case though.
All too often towns and villages are left with no real bank presence to speak of as a result of the closures, leaving residents facing lengthy journeys to neighbouring towns in order to bank in person.
And research released just last week found that more than 200 high street bank branches across the country are already the ‘last in town’, meaning many more customers could soon be left in the same boat.
Pilot schemes for cash access
Obviously, banks are only interested in keeping costs to a minimum, which is why they're closing branches in their droves.
But one interesting new trial could keep bank shareholders happy while still providing customers with access to a local branch.
Effectively, it means allowing many banks to exist in just one branch. Here's how it works.
Taking turns
In Rochford and Cambuslang, shared banking hubs are being set up by the Post Office.
The idea is that different banks will occupy the hub on different days of the week ‒ Monday for Barclays, Tuesday for Lloyds, that sort of thing.
Customers who then need to bank face-to-face will have a way of speaking to staff from their bank on a specific day in their town, without the need for a dedicated branch.
The pilot scheme launched back in April, with the intention of running until October.
However, it has now been announced that the shared banking hub trials will be extended until April 2023.
Natalie Ceeney, the campaigner behind the trials, said that the banking hubs had proved immediately popular and explained that the pilot was being extended so that participating banks can refine how it works to provide an even better experience to customers.
Catering for everyone
I’m not in the least bit surprised that these banking hubs have proven popular.
While I’m more than happy never to have to step foot in a banking branch again, I realise that I’m in an incredibly privileged position.
There are an awful lot of people ‒ and businesses for that matter ‒ who rely on having some form of physical banking setup and who have been most badly burned by the sweeping bank branch closures.
The reality is that we need banks to maintain some level of branch network, but as more and more of us head online it’s inevitable that providing that branch setup begins to look less than financially viable.
Shared banking hubs can change all that.
The cost of staffing a day, or even half a day, in a local banking hub is always going to be more palatable than the overheads on a rarely used ‒ even if locally valued ‒ branch.
And ultimately, everyone benefits.
The banks lower their costs and can continue providing customers with a more personal touch, should they need it, while the customers get to bank in a way in which they feel comfortable, without having to travel substantial distances to a local branch.
The ball is now in the Government’s court. It has the power to turn these banking hubs into something that is commonplace across our small towns and villages that have been most badly hit by the bank branch retreat.
What do you think? Are banking hubs a win-win situation, or do you think banks should be required to offer an everyday service to customers? Share your thoughts in the comments section below.