Financial Inclusion: Rural Areas
Debate between Anna Sabine and Richard Foord(1 week ago)
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Anna Sabine
I absolutely agree with the hon. Gentleman.
In my constituency, cash deposits are valued at £2.1 million each month, which shows how reliant small businesses and charities are on having access to banking facilities that allow them to withdraw and deposit money.
I would also like to talk about digital inclusion. In a world that is increasingly moving online, many elderly and vulnerable people are being left behind. Older people are not necessarily comfortable using online or even phone banking. They are being forced on to those services, which reduces their financial inclusion and puts them at greater risk of financial fraud. Rural communities can find themselves doubly excluded as more banking services move online, with a lack of access to cash facilities locally and poor digital connectivity.
Richard Foord (Honiton and Sidmouth) (LD)
Residents have told me that they really valued paper statements. Some 6,000 bank branches have closed in the past nine years. Two of the new banking hubs are in the area that I represent, in Axminster and Sidmouth, but people cannot get hold of printed statements. Does my hon. Friend agree that they ought to be able to get them at banking hubs?
Anna Sabine
That is a great question from my hon. Friend. I believe people should. As I understand it, there is a challenge relating to banking hubs and printers because there is a data or GDPR issue with the different banks sharing the printer. That definitely needs to be looked into for banking hubs.
To return to poor digital connectivity, just this week I had an email from a couple in their 70s who run a small artisan business in Pilton. They are getting speeds of only around 1.5 to 3 megabits if they use a normal router, but when they asked to be connected to the nearby Glastonbury exchange they were told it would cost them £290,000, including VAT. I have heard about similar issues from farmers in my constituency who cannot get broadband past the boundary of their farm, which can be several miles from the actual property.
Financial and digital inclusion are critically linked. For those on low incomes, access to online banking can be costly, requiring a computer or mobile phone data. For people in rural areas, it is tricky to manage finances online with limited access to broadband.