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The U.K.’s major banks have joined forces to protect consumers’ access to cash.
A new nonprofit company called Cash Access UK has been set up by the country’s main banks and building societies to promote the development of shared banking hubs across the country.
According to a Monday (Dec. 19) press release from UK Finance, a trade body representing the U.K.’s banking sector, Barclays, HSBC, Lloyds Banking Group, Nationwide Building Society, NatWest Group, Santander, Virgin Money, Danske Bank and TSB will fund the new company, which will operate independently.
“While many people are now opting to manage their money digitally, we want to ensure that people can continue to access cash and do their banking face to face too,” UK Finance Chief Executive David Postings said in the announcement.
With branch closures affecting many U.K. communities, shared banking hubs have emerged in recent years as a way for banks to continue to serve their customers and deliver vital services in places where it wouldn’t be economically viable for banks to operate individual branches.
Following a pilot of the scheme last year, Finance UK reported that there have been plans for 29 hubs announced so far. Currently, shared hubs are operated by the Post Office.
To date, the collaboration has been achieved through the Access to Cash Action Group, a UK Finance-led initiative that includes the participation of, the country’s main retail banks, the ATM network LINK, the charities Age UK and Toynbee Hall, and the Federation of Small Businesses (FSB).
The latest announcement follows last week’s news that the Bank of England has outlined its own plans for the future of wholesale cash distribution. That move came in anticipation of the BoE receiving an expanded remit to protect access to cash included in the Financial Services and Markets Bill (FSMB), which is currently making its way through parliament.
The provisions to protect access to cash included in the FSMB mean banks will soon have not just a social, but a legal mandate to ensure their customers can access cash services.
Related: UK Pushes to Legally Protect Access to In-Person Banking Services
Besides cash withdrawal and deposit services, shared banking hubs are staffed with local community bankers who can provide help and advice in areas such as mortgages, loans and pensions.
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