Banking Hubs

Debate between Baroness Vere of Norbiton and Baroness Tyler of Enfield

Monday 11th December 2023 Lords Chamber

[Baroness Tyler of Enfield]

To ask His Majesty’s Government how many banking hubs have been established in response to bank branch closures since January 2022, and whether they are taking steps to facilitate the establishment of a national network of banking hubs.

[The Parliamentary Secretary, HM Treasury (Baroness Vere of Norbiton) (Con)]

My Lords, since January 2022, the financial services sector has opened 23 banking hubs, with another 27 hubs expected by Easter next year. Following government legislation, last week the Financial Conduct Authority published proposals for a new regulatory regime to protect access to cash. This includes proposals that seek to ensure a timely delivery of services that meet the needs of communities.

[Baroness Tyler of Enfield (LD)]

I thank the Minister for her Answer and welcome the steps being taken to safeguard free access to cash. Does the Minister agree that many people, particularly older people and those with disabilities, need access to physical banking services which go much further than access to cash? It is about having a real person to talk to. Given that banks and building societies have closed over 6,000 branches since 2015, does the Minister also agree that the rollout of banking hubs has been painfully slow, leaving many communities to become banking deserts? The current plans are totally inadequate for creating a much-needed national network of banking hubs, which some have estimated would require between 800 and 1,000 such hubs.

[Baroness Vere of Norbiton (Con)]

There were many questions there and perhaps I will focus on the last one, which is where the FCA consultation comes to the fore. The proposals set out by the FCA are very detailed and potentially go much further than the voluntary initiatives of banking hubs that have so far been undertaken by the sector. Obviously, that consultation remains open until 8 February, and we will be looking for not only banks to respond but representatives of the vulnerable groups the noble Baroness describes, so that we can get a full view of what the proposals should be.