Eight new banking hub locations unveiled

Eight new locations have been confirmed as bank hub locations after branch closures, ATM network operator Link said today.

The newly announced locations are Newton Aycliffe in County Durham, Porthcawl in Bridgend and Withernsea in East Yorkshire.

Speaking to This is Money, a spokesperson for Link said the banking hubs are expected to open next year, but ideally sooner.

The pace at which the hubs, installed by Cash Access UK, can be opened will depend on things like finding premises and obtaining planning permission, the spokesman added.

Earlier this month, HSBC became the first bank to agree to delay the closure of a final branch in the city until alternative banking arrangements are made.

Taking into account today’s eight new locations, over 50 new banking hubs have been announced across the UK so far.

Link also said Knutsford in Cheshire and Stony Stratford in Buckinghamshire will benefit from ‘enhanced cash deposit services’.

In addition, the group said it planned to deploy new free-to-use ATMs in Newburn, East Horsley and Ystradgynlais, which will run out of ATMs once the last bank branch in the area closes for good.

Link said it would continue to identify locations in need of further out-of-pocket services, adding that communities without branches can ask the group directly for support.

John Howells, Link’s chief executive, said: ‘The eight banking hubs we’ve recommended today will become part of the fabric of the High Street.

“Those that have opened to date have received rave approval from local residents and businesses, and LINK is proud to recommend services for these communities.”

Link said there are four banking hubs open in the UK, in Brixham, Cambuslang, Cottingham and Rochford.

Bank hubs, according to Link, provide basic banking services, including counter services at major banks and the post office, and “dedicated rooms” where customers can see community bankers from their own bank for more complicated matters that require specialist knowledge or privacy. Automated deposit and withdrawal services may also be available.

Companies such as Barclays, HSBC, Lloyds Bank, Nationwide Building Society, NatWest, Santander and TSB are all involved in the bank hub plan and have collectively closed dozens of bank branches in recent years. When a bank closes a branch, it must notify Link, who then assesses the impact on the local community’s access to cash.

Last summer, the country’s major major banks were warned by the financial regulator to make new banking hubs a “priority” amid their excruciatingly slow rollout.

In August 2022, the Financial Conduct Authority said, “Companies need to step up the pace and deliver more banking hubs. We expect this to be done with priority.’

It added: ‘Banks and building societies should treat their customers fairly and provide alternatives to branches where appropriate.

“Bank hubs are one of the tools they can use to ensure communities have easy access to banking services and cash.”

At the time, banking expert Derek French, a longtime advocate of banking hubs, welcomed the regulator’s intervention, accusing lenders of slowing the opening of hubs to the “pace of a snail.”

According to consumer group Which? main banks have closed approximately 5,355 branches since January 2015. At the end of this year there will be 5,549.

Banks and building societies argue the closures are necessary because more people are taking care of their money online, not through brick-and-mortar branches.

However, critics say that the rapidly dwindling number of bank branches is putting groups such as the disabled, the elderly and carers into trouble.