Call for local banking hubs in small towns after major branches cut

A call for bank hubs is now being proposed by councillors at Wokingham Borough Council for the convenience of older residents and people who wish to rely on a face-to-face service.

Following the pandemic, the majority of national banks started to withdraw from smaller towns due to the amount of people using online services and the lack of footfall compared to before the pandemic.

This includes banks such as Nationwide, Lloyds, Barclays TBC and HSBC.

Cllr Clive Jones has contacted senior leaders at nation wide banks that have withdrawn from areas in Berkshire to start a conversation about opening smaller bank hubs.

He said: “Many people, particularly our older residents, rely on being able to get cash for their everyday needs and they miss the opportunity to do so in a bank or building society.

“There is also a concern among local businesses that a reduction in the number of banks is causing people to go elsewhere to do their shopping. There are also some transactions that need people to physically visit their bank – and that can mean quite a long journey for some of our residents now.

“I realise banks are commercial operations and that many of us don’t use them in the way we did in the past – and that is why a hub that brings together a number of high street providers is a great option. They have worked elsewhere and so my question to be banks is why not here.”

Without the presence of a bank, local residents have been known to travel to another town which is taking business away from local smaller businesses who also may need to be in close proximity to a bank.

Bigger towns are more likely to still have multiple banks and would be a more desirable place to shop despite the distance.

Cash transactions remain popular among elderly customers who have been feeling the loss of banks and often face challenges with online and card transactions.

He said: “Many people, particularly our older residents, rely on being able to get cash for their everyday needs and they miss the opportunity to do so in a bank or building society.

“There is also a concern among local businesses that a reduction in the number of banks is causing people to go elsewhere to do their shopping. There are also some transactions that need people to physically visit their bank – and that can mean quite a long journey for some of our residents now.

“I realise banks are commercial operations and that many of us don’t use them in the way we did in the past – and that is why a hub that brings together a number of high street providers is a great option. They have worked elsewhere and so my question to be banks is why not here.