Although ATMs, post offices and new-style community centers will never replace old-fashioned bank branches, we must accept that the banking landscape of yesteryear will never return. It’s gone forever, smashed to smithereens.
Where service with a smile (sometimes with a frown) once dominated, machines now rule. And even a resurgent Labor Party, which promises the country the world and more, will not be able to change this after – as widely expected – it becomes our new government on July 5.
Although Labor is expected to include a pledge in its manifesto, published this week, to ensure personal banking advice is available on every high street, it is difficult to see how this will be delivered. For starters, changes to existing legislation are likely to be needed. This is because the current rules, introduced last year after a difficult delay, are built around securing access to cash, not advice.
Would such legislative hassles be a priority for a new Labor government? I’m not sure. He has bigger fish to fry.
I’m also sure that the banks would fight tooth and nail to resist new regulations that forced them to spend more money on the big banks. Their focus is now on digitizing banking services.
Innovation: Traditional ATMs only accept deposits from customers of the bank under whose name the machine operates
As a result, under a government led by Sir Keir Starmer, the only thing that can be guaranteed when it comes to banks is that the branches will continue to wither on the vine. A few days ago, a leading banking expert told me the same thing.
He said hundreds more branch closures would be announced before the end of the year – regardless of who occupies 10 Downing Street. So my prediction is that the big bank landscape taking shape before our eyes will persist for at least the next five years.
It may not be to everyone’s taste, especially those who (understandably) like to go to their bank every week to withdraw money and have a chat with a friendly employee. But at least it should ensure continued access to cash – and basic banking services – in most communities across the country.
The first pieces of this puzzle are already in place: a national network of post offices offering basic banking to everyone, including small businesses; and a nationwide army of free-to-use ATMs, albeit a smaller number. Cashback services are also widely available, which is vital in rural communities.
The next pieces of the puzzle – the banking nodes – are coming into place, albeit slowly. Through these hubs, customers of all banks have access to basic banking services. Representatives of the major banks are also available on specific days of the week to help people with more complex financial problems.
So far, 54 hubs are operating in cities that have lost all their banks. But many more – 80 – have been approved and are waiting to find suitable premises.
And as more and more cities become bankless, I imagine that Cash Access UK, the organization responsible for getting hubs off the ground, will be given the green light to launch more hubs. 350? 500? Who knows?
Another piece of the puzzle is also falling into place. Three new Cash Access UK ‘super’ ATMs have been launched in recent days in Atherstone (Warwickshire), Heathfield (East Sussex) and Swanage (Dorset). These are towns that have all lost their banks in recent years, although building society Nationwide has a branch in both Atherstone and Swanage, while Barclays offers a part-time cashless ‘local’ service in Heathfield council offices.
What makes these new machines ‘super’ is that they accept deposits from customers of most major banks (exceptions are Santander, Metro and Nationwide). Traditional ATMs only accept deposits from customers of the bank under whose name the machine operates.
This multi-bank deposit facility will be particularly attractive to small businesses that require regular cash withdrawals. Closures have made cash banking difficult for many businesses, forcing them to travel further in search of a branch that can take their deposits. Some had no choice but to use cash, angering shoppers who prefer to use cash.
Although this new type of ATM is being trialled, it is here to stay. Fourteen more super ATMs will go live at the end of this month – and another 50 to 60 will open before the end of the year. It is a welcome development.
Martin McTague, national chairman of the Federation of Small Businesses, says super ATMs are an “important innovation” that will allow consumer-facing businesses (mainly small retailers) to “securely deposit their receipts for the day without closing early or traveling miles ‘ .
Gareth Oakley, boss of Cash Access UK, agrees. He says ATMs are an “essential” cog in maintaining access to cash.
While still far from perfect, the emerging banking landscape should protect access to cash for a while yet.
- Do you agree? Email jeff.prestridge@mailonsunday.co.uk.
Essential link for the Isles of Scilly
Two and a half years ago, my intrepid colleague Toby Walne took a torrid twenty-minute flight aboard a Twin Otter plane to spend time in the Isles of Scilly.
The trip wasn’t so Toby could marvel at the incredible scenery of the islands and feast on their delicious seafood. It was intended to speak to residents who were upset about the impending loss of their last bank, Lloyds.
On a mission: MoS reporter Toby Walne on his journey to the Isles of Scilly
Despite the uproar and Toby’s lively reporting, Lloyds closed the branch in April 2022, leaving residents and tourists reliant on a mix of cashback facilities and post offices for access to cash. Lloyds also magnanimously kept its cash machine open.
Now a new cash machine has just been installed in the outer wall of the Post Office in St Mary’s Harbor on the main island of Scilly. It means that residents and tourists can, in theory, have access to cash 24 hours a day, provided the machine doesn’t run out of notes (the Lloyds cash machine closed last month).
The new ATM is a great result for local entrepreneurs, residents and the more than 100,000 tourists who visit the five islands every year.
Communities that feel their access to cash is not good enough can request a review from ATM network operator Link. Visit link.co.uk/consumers/request-access-to-cash.
Brave Rob was an inspiration
In May last year I slogged my way through the Rob Burrow Marathon in Leeds, raising £3,172 to help build a Motor Neurone Disease (MND) care center in the city.
Inspiration: Kevin Sinfield pushes Rob, affected by motor neurone disease, in his wheelchair
I have three lasting memories of the 26.2 mile run: the tough course; being overtaken by Kevin Sinfield (who pushes the ALS-stricken Rob in his wheelchair) at kilometer 16 and crying with admiration; and later watching on television, Kevin physically carries Rob across the finish line.
Rest in peace, Rob. When the Rob Burrow Center for Motor Neurone Disease is built, it will be a fitting legacy for your courage and bravery in the fight against such a terrible disease.
Tickets to the buffers
Paper train tickets are moving to the buffers in favor of tickets carried on mobile phones – or payment via bank card at the station gates. Another proof that we are moving towards a digital world that will unfortunately leave many people behind.
Rather than abolishing them, I think railway companies should improve their reliability. I buy a weekly pass for my commute and it’s 50:50 whether it works or not. An absolute pain when your train is about to depart, you can’t get through the barrier and there are no staff there to help.
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