UK areas with ‘worst bank branch access’ per person have been revealed by Which. (Image: Getty)
Recent research by Which? has revealed alarming data regarding bank branch accessibility in the UK. The study indicates that since 2015, over three in every five bank branches across the nation have permanently closed. This trend significantly affects various communities, especially those in rural areas.
Regions with the Worst Bank Branch Access
Yorkshire and the Humber leads the list with the worst bank branch access in the UK, having only 4.4 branches per 100,000 people. Following closely is the East Midlands, which has a ratio of 4.6 branches per 100,000 people. On the other hand, Scotland boasts the best access with 6.9 branches per 100,000 people. However, the uneven population distribution means rural residents often face long journeys to the nearest branch.
The South East and London, despite being populous regions, have also seen numerous closures. These areas initially had more branches, which has somewhat mitigated the impact of the closures.
Impact on Local Communities
The ramifications of these closures are far-reaching. Vulnerable populations, including individuals with disabilities or lower incomes, heavily depend on physical bank branches. The shift towards digital banking is not always feasible for them. For instance, 30 parliamentary constituencies, representing over three million people, have no bank branch at all.
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As many as 30 constituencies have no bank access at all, according to the research. (Image: Getty)
The impact on local communities can be profound, with some of the most vulnerable members of society, such as individuals with disabilities or those on lower incomes, highly reliant on branches and either unable or unwilling to transition to digital banking.
Regions with high closure rates, such as the South East leading with 856 closures and London with 804, initially had more branches to serve their large populations. However, many areas now have no bank branch, severely limiting financial access for more than three million people.
New Regulations and Future Solutions
New rules from the Financial Conduct Authority (FCA) came into effect recently, requiring banks to consider local cash needs before closing branches. These regulations mandate that banks assess whether additional services are required before halting branch or ATM operations.
The FCA also empowers residents to request assessments of local cash accessibility gaps. Banks must provide reasonable additional services where significant gaps exist. Additionally, banks are collaborating to establish more shared banking hubs, aiming to open 350 hubs by 2029 to mitigate the impact of branch closures.
Yorkshire and the Humber is the region with the “worst” bank branch access in the UK. (Image: Getty)
Future of Banking in the UK
Organizations like Cash Access UK are dedicated to safeguarding cash access. They have successfully facilitated over one million transactions in banking hubs across the UK. Their efforts ensure that even as digital banking becomes more prevalent, those who prefer or rely on cash are not left behind.
Sam Richardson, deputy editor of Which? Money, emphasized the crucial role of banking hubs and the importance of government oversight to ensure that commitments are met. He said, “Bank branch closures can severely impact local communities. The Government must hold banks accountable to ensure the rollout of 350 banking hubs by 2029.”
A spokesperson for UK Finance noted, “The banking industry is committed to ensuring continued cash access. Significant investments in shared banking hubs are a testament to this commitment. Many hubs already exist, especially across Yorkshire.”
Adrian Roberts of Link added, “While digital banking is growing, many still rely on cash. Free-to-use ATMs and post offices will continue to play a crucial role in ensuring nationwide cash access.”
As we navigate these changes, it’s vital to balance digital innovation with inclusive practices, ensuring everyone has access to the financial services they need.
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