Bank Services
The question
To ask the Chancellor of the Exchequer, what plans the Government has to promote (a) community banking models and (b) cooperative financial institutions to improve access to banking services in underserved areas.
Answered by Lucy Rigby
The Government recognises the importance of diversity in the UK financial services sector, including community banking and co-operative models such as credit unions. These institutions provide valuable options for local communities, including underserved areas, by offering savings products and affordable credit.
To support this, the Government is pursuing plans to reform the credit union common bond, making it easier for credit unions to grow and serve more members. We have also asked the FCA and PRA to publish a report on the mutuals landscape by the end of 2025 to inform future policy development.
In addition, some building societies are exploring innovative ways to deliver banking services alongside their branch networks, such as through multi-bank kiosks with deposit ATMs. The Government welcomes these industry-led initiatives that improve access to banking services for customers.
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