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- New rules to protect cash approved and 15 new banking centres announced
A new wave of banking centres in England, Wales and Scotland have been given the green light, ATM network provider Link revealed today.
There are currently 81 centres open and a further 15 have been confirmed this morning, from Newquay in Cornwall to Huntly in Aberdeenshire.
Link says they will be up and running within 12 months, once a location is found, planning permission is granted and the building is renovated.
This comes as new Financial Conduct Authority rules protecting access to cash become law today.
In search of cash: 15 new banking centres to be set up in UK cities
The 15 new banking centers will include locations that previously did not qualify.
Link has made 162 other recommendations for cities that should receive a banking center, to fill the void of branches that banks have closed at an extraordinary rate over the past decade.
The next towns to receive banking centers are:
- Sidcup (London)
- Normanton (West Yorkshire)
- Hailsham (East Sussex)
- From (Somerset)
- Sheerness (Kent)
- Whitley Bay (Tyne and Wear)
- Rugeley (Staffordshire)
- Newquay (Cornwall)
- Harborough Market (Leicestershire)
- Thetford (Norfolk)
- Monmouth (Wales)
- Morecambe (Lancashire)
- Harpenden (Hertfordshire)
- Huntly (Scotland)
- Yeadon (West Yorkshire)
A total of one million transactions have been made at banking centres across the UK, non-profit company Cash Access UK revealed today.
The FCA’s cash access rules will ensure that consumers in cities where the last city branch will close are not left without access to cash.
Under the new rules, banks and building societies must assess whether changes to local services, such as closing branches or ATMs, leave local communities without ways to withdraw or pay cash.
Link will then have 12 weeks to assess whether there are gaps in consumers’ ability to deposit and withdraw cash.
If significant gaps exist, banks and building societies will need to provide additional cash services to meet the needs of local areas.
When a bank branch is about to close but is the last bank branch in town, it will not be able to close its doors until a banking center is open and operational.
Nearly two-thirds of Britons and more than two-thirds of local businesses have said that having access to cash is essential, new figures from the Post Office reveal.
Banking centres are staffed by a traditional counter service operated by the Post Office, and community bankers from nine major banks operate on a rotating basis to support customers with their banking needs.
Link conducts community assessments in accordance with the new rules following the announcement of any bank closure, a significant change in hours or services provided, or when requested by a member of a community.
Link then recommends new banking centres or deposit services that are provided by Cash Access UK, which is owned by the banks.
Setting up a banking center can take up to a year, and most of this time is spent finding a location for the new center.
The Labour Party has promised that there will be 350 banking centres before the end of the parliamentary term. So far, 81 of them have been created and 100 are expected to open before the end of the year, according to Cash Access UK.
Adrian Roberts, Deputy CEO of Link, said: ‘Today is an important moment for the millions of people across the country who rely on or prefer to use cash regularly.
‘The new rules that came into effect today are great news for consumers and businesses and will ensure that access to cash remains available on our streets for years to come.’
Sheldon Mills, Executive Director of Consumer and Competition at the FCA, said: “The way we spend money is changing and fewer of us are using cash on a daily basis. We don’t want to hinder change, but we do want to ensure reasonable access to it for those who still rely on cash.”
– Have you used a banking center? Tell us about your experience: editor@thisismoney.co.uk
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