Banking Hubs: Older People

The way people across the UK use retail banking services has changed significantly, with many customers now choosing to bank online. In response, banks and building societies have reshaped their branch networks, reflecting changing customer preferences. However, the Government understands that some customers, including older people, continue to rely on in-person banking services and is committed to supporting the financial services industry’s roll-out of 350 banking hubs by the end of this Parliament. 280 hubs have been announced so far, and more than 235 are already open.

Banking hubs offer everyday counter services provided by Post Office staff, allowing people and businesses to withdraw and deposit cash, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services.

The Government continues to engage with industry on ways to improve the consistency and level of services provided through banking hubs. Through this engagement, firms have agreed to take forward further functionality improvement trials and raise awareness of the services available, helping banking hubs to continue to evolve in response to customer needs. In January, my predecessor chaired a roundtable with banks, Cash Access UK (CAUK) and UK Finance to discuss services provided in banking hubs.

This engagement builds on previous commitments secured by the government and I am encouraged by the progress made towards delivering these. Through our collaboration with industry, there has been significant progress in more closely aligning services offered by community bankers in hubs with those available in traditional bank branches.

Industry is committed to continue improving banking hubs, and we work closely with firms to ensure that services meet the needs of people and communities. For example, over the past year all original CAUK member banks have ensured that customers can access hub services without needing a personal digital device, such as a mobile phone or tablet. This has improved accessibility. Customers can also now carry out a wide range of banking services, including opening an account, updating their name or address, registering a complaint, and receiving support with online or telephone banking, as well as getting help with more complex matters such as bereavements, powers of attorney, and fraud or scam concerns.

In addition, financial services providers are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services. The treatment of customers by UK banks and building societies is regulated by the Financial Conduct Authority (FCA), which requires firms to provide a prompt, efficient and fair service to all customers.

The Government has commissioned an independent Review into Access to Banking Services, to assess whether changes in access to in-person banking services are causing consumer detriment, the scale of any detriment, and who it affects, including the ageing population.

HMT launched the Access to Banking Services Review Call for Evidence on 8 June and will run for 6 weeks, closing on 20 July, inviting input from consumers, businesses, charities, community groups, local authorities and industry across the UK. The evidence will inform recommendations, with findings due in October. Responses can be submitted here: https://www.gov.uk/government/consultations/access-to-banking-services-review-call-for-evidence.