Banks across the United Kingdom are implementing new rules prompted by stricter regulations over branch closures and accessibility to cash. The rules that were enacted on Wednesday permit banks to establish “hub” spaces shared by different banks, with which they will operate standard personal and business banking services. The construction of fifteen such hubs is expected to begin shortly, with the Post Office running many of them, such that clients of any bank in the UK can make deposits and withdrawals. Access to a range of cash services is essential for those who are paper-based in their banking and for the vulnerable not comfortable using online banking facilities.
Data from the consumer association, Which?, indicates that over the past nine years, 6,000 banking branches have ceased operations, leaving many UK regions with inadequate access to cash. New legislation requires banks and building societies considering branch closures to evaluate the accessibility to cash in their branch footprint. They face the possibility of having to provide additional facilities in areas with inadequate access to funds before closing branches. The crisis reach a peak when the vast majority of individuals saw increased living expenses.
Customers of banks utilizing these hub facilities have raised questions regarding the quality of service and investment by banks, with some complaining that there is no printer available. The absence of print statements leaves clients unable to provide paper copies of documents, which may be required by employers or landlords. Economic Secretary to the Treasury, Tulip Siddiq, met with service providers last week and encouraged them to expand the range of services on offer. “Banking hubs are a lifeline for local communities that have lost their final bank branch. I’m confident that the banks will deliver on the commitment made at the meeting, as well as take a more active approach to meeting the needs of local communities,” she said. Cash Access UK, the firm that manages the hubs, has stated that it will investigate the installation of printers in these premises.
Community leaders have been requesting more widespread and faster introduction of new hubs, with Ron Delnevo, the Payment Choice Alliance’s chairman, branding existing arrangements an empty gesture. Communities deserted by the major banks’ branches have not discovered the new hubs as a genuine solution to their problems, accompanied by the criticism that the facilities are not open 24/7. To resolve this issue, fifteen new facilities will open shortly in places like Sidcup in London, Harpenden in Hertfordshire, Yeadon in West Yorkshire, and Morecambe in Lancashire, amongst others. Most of them were recommended by Link, who manage cash access and ATMs in the UK, and many establish a presence in locations where there is still a building society but the opening times are restricted
Read the full article from The BBC here: Read More
