Financial Inclusion: Rural Areas
Debate between Steff Aquarone and Anna Sabine(1 week, 4 days ago)
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Anna Sabine
I am sorry to hear about what is happening in Ilminster; it sounds very frustrating. I will talk a little more about banking hubs and why they are a good thing that we need more of.
Prosper Frome, an organisation in my constituency that focuses on improving financial accessibility, had been advocating for a banking hub for over a year before it was announced by Link and Cash Access UK in September. That was a great relief to residents, who were about to see their final bank close, but Jean and Sam at Prosper Frome believe that the scope for banking hubs is too narrow, and have been lobbying hard to get a banking hub included as part of a much wider community project, enabling the hub to be multi-purpose. Making banking hubs more diverse widens their appeal and can make banking and financial inclusion the anchor of the kinds of community third spaces that many towns currently lack.
Steff Aquarone (North Norfolk) (LD)
I congratulate my hon. Friend on securing this important debate. She is right to say that banking hubs are about more than just access to cash. In the market towns of North Norfolk, our small businesses need access to banking services, which full banking hubs can provide. Does my hon. Friend understand why residents of North Walsham are so frustrated that the outcome of their recent cash review was simply to give them a cash and deposit machine located in the local fried chicken shop?
Anna Sabine
That sounds very frustrating; I am sorry to hear it. I will talk about the importance of face-to-face contact in banking.
Shutting branches and opening banking hubs is currently financially efficient for banks, but there is a real risk that those banking hubs could close after a few years once the banks stop saving money and see the hubs as a drain on their profits instead of a benefit. We need reassurance about the long-term provision of banking hubs and a requirement on banks to keep funding them on an ongoing basis.