The quiet coastal town of Prestatyn, nestled in North Wales, became an unexpected battleground in the fight against bank branch closures. Over a three-year period, major banks like TSB, Barclays, HSBC, NatWest, and Royal Bank of Scotland systematically withdrew their presence from the town, leaving residents and businesses stranded without local banking services. This forced them to travel over five kilometers to the neighboring town of Rhyl for essential banking transactions. This inconvenience disproportionately affected Prestatyn’s elderly population, many of whom relied on face-to-face banking services. Ironically, long queues persisted outside these branches right up until their closure, highlighting the community’s dependence on them.
Recognizing the hardship faced by his constituents, Dr. James Davies, the local MP, spearheaded a campaign to restore banking services to Prestatyn. He engaged with LINK, the UK’s ATM network, presenting a compelling case for a banking hub in the town. His arguments, emphasizing the town’s demographics and the demonstrable need for local banking access, proved successful. In November 2022, Prestatyn received confirmation that it would receive a banking hub, which officially opened its doors the following month. This victory served as a powerful example for other communities struggling with similar challenges.
Prestatyn’s story reflects a broader trend of bank branch closures across the UK. Since 2015, more than 6,000 branches have been shuttered as banks prioritize online and mobile banking services. Banking hubs have emerged as a vital solution to this growing problem, offering communities a lifeline to essential financial services. These hubs, operated by the Post Office and owned by Cash Access UK, provide a physical location where customers can conduct routine transactions, deposit and withdraw cash, and access support from representatives of various major banks on a rotational basis. They effectively bridge the gap left by branch closures, ensuring that residents retain access to face-to-face banking and financial advice.
The establishment of banking hubs follows a structured process involving LINK, the organization responsible for evaluating cash access needs across the UK. Anyone, including individuals, community groups, and organizations, can submit a “cash access request” to LINK if they face difficulties accessing cash in their area. LINK then assesses the request based on factors like population size, availability of alternative services, and the impact of limited cash access on the community. If a need is identified, LINK recommends a banking hub and passes the case to Cash Access UK, which handles the practicalities of setting up the hub, including finding a suitable location, negotiating leases, obtaining planning permission, and overseeing renovations.
The success of Prestatyn’s campaign inspired other communities to follow suit. Following Prestatyn’s lead, 56 other areas across the UK have successfully requested banking hubs after losing their local branches. These hubs have already become operational in 22 towns, including Dartmouth, Haslemere, and Helston, providing crucial financial services to residents. An additional 35 hubs are slated to open in the coming months, extending this vital resource to towns like Harpenden and Filey. Maryport, in Cumbria, holds the distinction of being the first town to successfully request a banking hub, setting a precedent for communities fighting to retain local banking access.
The push for banking hubs has prompted regulatory changes aimed at protecting access to cash. New rules require banks and building societies to assess the impact on cash access before closing a branch. If access is deemed insufficient, they must provide alternative facilities, such as a shared hub, before proceeding with closure. However, as highlighted by MP James Davies, these regulations don’t cover all situations, particularly in cases where service reductions have already occurred. This underscores the importance of community action and engagement with LINK to advocate for necessary cash access solutions. The establishment of temporary banking hubs, as seen in Hessle, demonstrates the flexibility and responsiveness of the system in addressing urgent needs while permanent solutions are developed. These temporary hubs, often located in community centers or libraries, provide a crucial stopgap measure until dedicated banking hub facilities can be established.
The story of Prestatyn and other towns successfully advocating for banking hubs underscores the importance of community action and the power of collective voice in addressing critical local needs. It highlights the vital role of these hubs in maintaining access to essential financial services, particularly for vulnerable populations and those reliant on face-to-face banking. The continued expansion of the banking hub network across the UK offers a beacon of hope for communities struggling with the impact of branch closures, ensuring that access to vital financial services remains within reach.
