The country’s economy may not yet be in growth mode, as the latest GDP figures confirm, but Finance Minister Rachel Reeves was in an ebullient mood on Friday as she opened the country’s 100th banking centre.
The chancellor lived in Darwen, Lancashire, a town on the edge of the rugged West Pennine Moors, which boomed in the 19th century thanks to its booming cotton industry but has since fallen on hard times despite the enduring reputation of its paint and paper industries .
Like many towns across the country, Darwen has lost all its banks; Barclays, Lloyds, NatWest and Santander have all fled their nests in the past eight years.
But the new hub, which provides banking services to customers (private and business) of all major banks, is seen by ‘Darreners’ (the town’s locals) as a major boost for the community.
“Bloody awesome,” said an emphatic and cheerful Tracy Fisher, who works nearby at Coffee Shop Number 1.
52-year-old Tracy served me a delicious bacon sarnie and a double espresso and said: ‘This city is heavily dependent on cash. It is awash with small shops and has an indoor market where many businesses are cash only. The hub, where people can deposit money and do basic banking, is therefore a welcome Christmas gift. It’s time we got some good news here.’
Commitment: Jeff Prestridge with Chancellor Rachel Reeves in Darwen
It’s a view shared by the chancellor, as I spent five minutes with her in the small back room of the hub. ‘Big proponent of hubs?’ I asked, refusing the kind offer of a croissant. The smiling Reeves’ response was immediate.
“A big supporter,” she said. ‘I am very happy to (officially) open the 100th banking center today. Five hubs opened this week and we wanted to get them open before Christmas.”
She continued: ‘This is the most important time for the high street and those without access to cash – and businesses unable to raise cash. In recent years the only news about our high streets has been bad news: their erosion, the disappearance of high street names, the departure of banks, problems with crime and anti-social behaviour.
‘So it’s very good to announce and do something positive. Not just talking about it, but also rolling it out.’
The Darwen hub is quite impressive indeed. Housed in a shop that had been empty for over a year, it is bright, modern and welcoming. It is open Monday to Friday and is run by the Post Office. Representatives from Barclays, Halifax, Lloyds, NatWest and Santander will be on hand on separate days to assist their own customers with any banking issues. Like all hubs, it is there because the city has no banks.
Asif Patel, the hub’s boss, also runs the local post office. Although it is still early, many people have already arrived.
“It’s great for some of the older customers in town,” he told me. “If they have a problem, they can come here and consult a representative from their bank and resolve the problem. It saves them a bus trip to Blackburn.’
In its election manifesto, Labor said it has committed to having 350 banking centers operational by 2029. It is a promise that the Chancellor has no intention of breaking.
Pointing towards nearby Tulip Siddiq, Minister of Economy at the Ministry of Finance, the government’s driving force on hubs, she said: ‘Many MPs come to her with questions about the hubs at Tulip . Whether in the House of Commons or in its operations, they are all saying, ‘What can I do to get a banking center?’ MPs from all parties.’
Impressed: Jeff with Tracy Fisher from Coffee Shop Number 1
With 80 more hubs in the pipeline, Reeves said she was “committed to delivering on the 350 hub promise.” “I would like to be at the 200th and 350th bank opening to cut the ribbons,” she added.
Tulip is happy with the rise of the hubs and is confident that 230 hubs can be operational by this time next year. She told me, “In return, we wrote this article called Financing Growth, and everyone we spoke to talked about face-to-face banking hubs. The importance of banking services that you can physically use.
‘I know there is a perception that everyone banks online, but in fact there are many people, especially vulnerable people – the elderly and people from a lower socio-economic background – who find it difficult. Banking hubs are a solution for these people.’
Although the official opening of the 100th banking hub was dominated by the presence of the Chancellor, it was also good to see representatives from the organizations that created hubs
happening: Cash Access UK (the organization set up to find suitable locations and funded by the banks), UK Finance (the banking trade group that deployed the first hubs) and the Link ATM network (which determines which cities should get access a node).
It was good to see Natalie Ceeney there too. She was instrumental in getting the snowball rolling with her 2019 Access to Cash Review. She even found time to pat me on the back. “Without your support for hubs,” she said, “we wouldn’t be where we are today and celebrating the 100th hub.”
Kind words. The final words go to John Howells, CEO of Link. He believes that 350 hubs is too low a bar. While banks continue to close their branches, leaving cities unbanked, he says 1,000 is a more realistic goal.
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