Anne Marie Morris MP raised concerns about the current Banking Hub model being rolled out across the country, in response to Bank Branch Closures at a Treasury Select Committee hearing on Access to Cash. The Member of Parliament for Newton Abbot told officials of the Financial Conduct Authority (FCA) and the Bank of England, that it appears that Banking Hubs are being treated as "glorified cash machines" and there seems to be a lack of wider consideration for the additional financial service and advice that bank branches provide to consumers.
A Banking Hub is a shared banking services which provides cash and banking services to customers of different banks and building societies in one location. These Hubs have the potential to deliver significant benefits for local areas they are located in, providing both access to cash and community bankers who can support customers accessing wider banking services. Cash Access UK (CAUK), the designated body for implementing Banking Hubs, are currently in the process of putting Banking Hubs in both Dawlish and Teignmouth.
Anne Marie told FCA and Bank of England officials that "the consumer seems to be totally absent in your thinking". The 12 month period that is given for Hubs to be setup and operational after the last bank leaves town, or an Access to Cash need has been identified by LINK, is not sufficient.
Speaking about the current limitations of the Banking Hub model, Anne Marie said: "I am very concerned that hubs are being looked at as glorified cash machines. That seems unacceptable to me. I appreciate that the FCA has been tasked with looking at Access to Cash, but, as a regulator, they have a much broader remit than that. I am very worried that the FCA are not taking that broader remit seriously.
We are anticipating two hubs in our area, one in Dawlish and another in Teignmouth. Working alongside community groups, I have run into an extensive list of issues with rolling these Hubs out. I have raised these concerns in previous Treasury Committee sessions - and with success, we got the Dawlish Access to Cash review reversed, and a Hub designated for the area. But, even with the Temporary Hubs - a stop gap whilst we wait for a building to be found for the permanent hub - identifying a suitable building that meets CAUK criteria is incredibly challenging.
I will continue to keep fighting this every step of the way! People must be able to have access to banking facilities where they live and work."