Revitalized corner of Scotland proving banking centers can save the High Street

Step off the train at Cambuslang in South Lanarkshire and you’ll be greeted by a multi-coloured mural welcoming you to the town.

Bold and brash, it references the area’s history of coal mining, monuments and beautiful parks.

Cambuslang was once a thriving town, known for its steel production and the steel plates that were integral to shipbuilding in Glasgow’s shipyards. The community, just a 15-minute train ride from Glasgow (Glaschu), is a shadow of its former self, but Cambuslangers don’t feel sorry for themselves.

Even the recent news that the city library will close (cuts to the municipality) has not deterred them. They are determined to fight back and prove that the Cambuslangs of this world can survive and thrive against all odds.

Propelled by a passionate local community council (all volunteers) the town has sprung up with battalions of planters about to blossom. The sidewalks are also constructed in such a way that they can be walked on safely. Small improvements, but important ones.

And among the pubs, betting shops and fast food restaurants, a banking center is breathing new life into the city’s main street. Without the relentless campaign of the community council it would never have gotten off the ground.

“It’s been a tremendous amount of hard work,” admits board chairman John Bachtler, who, along with his lieutenant Mark Lauterberg, created the hub. ‘None of the banks wanted to support Cambuslang, but the success of the hub proves that the banking services of the big stores are a vital part of the community puzzle.’

The hub, set up just over three years ago in a former butcher’s shop, was one of two ‘pilots’ (the other was in Rochford, Essex). Today, 47 hubs crisscross the country, while another 75 have been approved.

One-stop community banks facilitate the basic banking needs of businesses and retail customers of all banks. You can deposit cash and checks, withdraw cash and pay bills. On select days, community bankers from leading banks are also on site to assist with more complex needs.

Financed by the banks and operated by the Post Office, the hubs can only be opened in communities where all banks (and also the national building associations) have closed their branches.

Even then, hubs can only be approved if it is assumed that there will be sufficient demand for services. In the case of Cambuslang, it lost its last bank, TSB, five years ago.

Skeptics believe that the banking giants see hubs as a short-term measure designed to counter criticism over the sacrifice of branch networks. As demand for high street banking declines, the hubs (most with short-term leases) will close, leaving consumers with no choice but to go digital.

Yet Cambuslang proves that hubs are not just a stopgap, but an essential cog that enables communities to function better.

Since opening, usage has grown with an average of 120 daily transactions, compared to an average of 97 since launch. In total, more than 70,000 counter transactions with a combined cash value of £21 million have been processed through the hub. Judging by the number of people using the hub when I was there on a rainy Friday, it’s popular. A steady stream of people, from all age groups, came in to deposit checks or withdraw cash, and a number of shopkeepers visited to withdraw cash ahead of a trading weekend.

Freelance musician Jennifer Stephenson came in to bank some money. The 40-year-old, an experienced clarinetist, says the hub ticks so many boxes. It’s good for our community,” she said. ‘It encourages people to spend time here rather than in Glasgow or Rutherglen. It is also good for elderly people who prefer face-to-face banking.’

Jennifer Taylor, a 39-year-old primary school teacher, is also a fan. She banks with Santander, which has a branch in Rutherglen, but the Cambuslang hub is more convenient for her banking. She says. ‘It’s fantastic to have a banking service on your doorstep.’

Jean Austin, the 65-year-old owner of local card and gift shop Pandora’s Box, uses the hub to receive cash and bank statements. She adds: ‘My customers prefer to pay in cash. The hub is good for them, my company and for the community.’ Liz Maclean, the 57-year-old manager of local pub Finlays, agrees. She uses the hub three times a week to bank the proceeds.

‘My local bank branch was converted into a Costa Coffee. I live here and love it, but it has its challenges. Unemployment is a problem. Parking is a problem and the main street has too many bookmakers and fast food shops. The hub is one of the best things to open here in years.”

Hubs only offer basic banking services. But with a little imagination (and money) from the banks, they could be improved. A minority are open on Saturdays, when demand for services may be higher. Hopefully this will change in the future.

Rules governing where a hub can open mean that in some communities where Nationwide still exists, small businesses are being disadvantaged because the building society does not offer business banking.

The cities chosen as hubs are determined by the Link ATM network, according to strict criteria. Gareth Oakley, CEO of Cash Access UK, the bank-funded organization responsible for setting up the hubs, said: ‘Cambuslang shows how much people value face-to-face banking – and it shows the life a hub can bring to the community.’

As for council members John Bachtler and Mark Lauterberg, their search for Cambuslang continues. They want the hub to include the credit union, a debt counseling service and a library. Mark says: ‘We will not lie down until Cambuslang has the services to thrive again.’

I wouldn’t bet on this determined couple succeeding.