Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions he has had with the Financial Conduct Authority on steps to help ensure local communities have access to essential in-person banking services.

Treasury Ministers and officials regularly meet with the Financial Conduct Authority (FCA) to discuss a variety of policy matters

The government believes that all customers, wherever they live, should have appropriate access to banking and cash services.

Decisions on opening and closing branches are a commercial issue. However, the FCA’s guidance sets out its expectation of firms when they are deciding to reduce their physical branches or the number of free-to-use ATMs. Firms are expected to carefully consider the impact of planned branch closures on the everyday banking and cash access needs of their customers and consider possible alternative access arrangements. This ensures that the implementation of closure decisions is undertaken in a way that treats customers fairly.

Alternative options for access to banking can be via telephone banking, through digital means such as mobile or online banking, and the Post Office. The Post Office Banking Framework allows 99% of personal banking and 95% of business banking customers to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches in the UK.

New shared Banking Hubs are also being introduced, providing cash and basic banking services and dedicated space where community bankers from major banks can meet customers of that bank. Decisions regarding the operation and location of Banking Hubs are taken by the parties involved. Following successful pilots Cash Access UK Ltd is rolling out shared Banking Hubs and other new shared facilities in communities across the UK. To date, industry has committed to deliver Banking Hubs in 80 locations. Further information on Banking Hubs is available at: https://www.cashaccess.co.uk/