The UK government has launched a comprehensive review to safeguard access to face-to-face banking services across the nation. Commissioned by Economic Secretary to the Treasury Lucy Rigby, the Access to Banking Review will gather evidence on the impact of branch closures, identify those most affected, and assess where further intervention may be necessary.
Background and Context
The review follows the announcement of the Enhancing Financial Services Bill in the King’s Speech, which includes provisions for swift government action if evidence supports intervention in banking access. Over recent years, many bank branches have disappeared from high streets as customers increasingly turn to digital banking. To fill the gaps, banking hubs—shared spaces for multiple banks—and post offices have been utilised, enabling many customers to conduct daily transactions over the counter.
Government Stance
Ms Rigby stated: “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.”
Review Leadership and Timeline
The review will be chaired by Richard Lloyd, a former non-executive director of the Financial Conduct Authority and executive director of Which?. He is tasked with delivering a report and recommendations to the government by October. Mr Lloyd commented: “Banking is an essential service that every consumer and community in the UK needs. That’s why it’s so 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.”
Industry and Stakeholder Reactions
Gareth Oakley, chief executive of Cash Access UK, noted: “While cash usage continues to decline as digital payments expand, we’ve seen first-hand how important local access to cash and face-to-face banking is for many households and businesses. Our job is to deliver solutions where these are needed, and to date we’ve opened 237 banking hubs and over 140 deposit services. We look forward to contributing towards the review and working with Government.”
Sarah Harrison, chief executive of the Building Societies Association, added: “Building societies and credit unions are rooted in local communities and provide more than one in three high street branches. As customer needs change, building societies are continuing to meet these both by investing in digital channels as well as innovating in high street branches and the use of community spaces – so it’s the customer’s choice of how and when to engage. We welcome the Government’s Access to Banking Review and look forward to contributing.”
Caroline Abrahams, charity director at Age UK, expressed support: “This review is very welcome as we hear regularly from older people who find their bank branch shuts and it then becomes very difficult for them to manage their money. While there are strong rules around cash access, banking services are less well protected, and we’ve long argued that access to face-to-face services should be put on a statutory footing as well. We look forward to working with the review team as they explore the best ways of safeguarding these essential services.”
A UK Finance spokesperson said: “The way people choose to bank is changing, but the banking industry remains committed to ensuring continued access to banking services for those who need it. Alongside branches, we are rolling out shared banking hubs across the country, and many everyday banking services can also be carried out at the Post Office. We look forward to contributing to Richard Lloyd’s review and supporting the Government as this important work progresses.”
