Financial Inclusion: Rural Areas
Debate between Anna Sabine and Jim Shannon(1 week ago)
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Anna Sabine
It will not surprise my hon. Friend to hear that I do agree. I will come on to talk about the criteria that Link uses in allocating banking hubs.
In Frome and East Somerset, an average of £630,000 is withdrawn in cash each month, showing how vital access is for people in these areas. The two main groups most affected by lack of access to cash are the deprived and the elderly. For people on low incomes, cash can act as an effective method to budget efficiently. Many elderly people feel excluded by the increasing reliance on digital services. With BT set to swap from analogue to digital landlines for millions of customers across the UK, there are concerns that that will lead to more isolation for elderly people who rely on landlines for their access to the outside world, and in many rural areas they may not have good broadband or mobile signal either.
Jim Shannon (Strangford) (DUP)
I commend the hon. Lady for securing this debate. Unfortunately, in my Strangford constituency, 11 banks have closed, I think, so the impact on rural dwellers is very real. Does the hon. Lady share my concern? If people do not have a bank or the face of someone to talk to, what do they end up doing? They can look towards unregulated moneylending and not receive the appropriate financial advice that they need. With that being the case, the banks and the massive profits they make mean that the ordinary person is suffering even more.
Anna Sabine
I totally agree. I had not considered that for my speech, but I will take away unregulated moneylending as a point to note.
Since the Financial Conduct Authority changed its regulations, Link has been able to do some valuable work to provide cash access to local areas. However, I urge the Government to look at how to make the regulations for Link more flexible to allow it to work on a case-by-case basis, as the current criteria do not take into account certain geographical and other barriers that affect rural areas. We know that 93% of people live within 1 mile of an ATM, which on paper sounds good, but it does not take into account issues that might come up in rural areas. For example, if someone lives in a village or hamlet, that 1-mile walk might have no safe walking routes and no bus connection. That is why we want to see the legislation expanded to include specific geographical, physical and societal barriers, so that they are taken into consideration.