Banks ordered to provide alternative options before axing branches
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Banks must offer customers alternative options before abolishing branches and free ATMs
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Banks have been told by the City Watchdog to offer customers alternative options before scrapping branches and free ATMs.
Local communities should also be consulted before lowering opening hours, under stricter rules set by the Financial Conduct Authority (FCA).
It comes after Money Mail called for an end to a string of closures, shorter opening hours and restricted counter use.
Closures: Banks and mortgage banks have been warned to offer customers alternative options before scrapping branches and free ATMs
Some 313 branches have already been closed this year, according to data from ATM network Link. Santander sparked anger in April by cutting the opening hours of nearly all of its 450 High Street stores.
And last year, Barclays started limiting what services customers could access at counters.
But under new FCA guidelines, banks are expected to offer alternatives to closed branches, such as free ATMs.
Banks considering counter closures may also need to explain how customers can access similar services. Sheldon Mills, executive director of consumer and competition at the FCA, said: “The industry needs to make sure it supports those who rely on cash and banking services.
“That’s why we’ve published updated guidelines for banks considering closing branches and reminded them that we want alternatives, such as banking hubs, quickly.”
f.parker@dailymail.co.uk