Bolton West one of few in UK without a banking branch

More than three in every five bank branches across the UK have closed their doors permanently since 2015, according to the consumer choice brand.

A permanent banking hub opened in Horwich after the town lost its final bank branch last month.

The town, which has a population of more than 20,000, saw its final bank branch, NatWest, close in July.

In previous years, Barclays, Royal Bank of Scotland and TSB have all shut branches in the town.

A plan for a much-anticipated new banking hub for Westhoughton has been lodged.

The proposal will see the former PR Gibbs and Co office on Market Street, Westhoughton, turned into a hub for all kinds of banking services.

This comes after the town was left with no banks and only two post offices after Lloyds Bank closed its branch on Market Street in 2022.

Yorkshire and the Humber has just 4.4 branches left per 100,000 people – making it the region with the worst branch access – the consumer group’s analysis found.

The East Midlands was found to have the second worst branch-to-people ratio, with 4.6 branches per 100,000 people.

Scotland has the “best” access to branches, at 6.9 per 100,000 people, but Which? said the uneven spread of its population means people living in more rural areas face long journeys to use a bank.

The research found 6,161 branches have been shut across the UK since 2015, representing over three-fifths of the banking network.

Which? said the impact on local communities can be devastating, with some of the most vulnerable members of society, such as those living with disabilities or on lower incomes, reliant on branches and either unable or unwilling to make the switch to banking digitally.

The South East is the region that has lost the most branches, Which? said, with 856 closures, followed by London with 804 branches shut. However, these regions had more branches serving larger populations.

Across the UK, there are 30 parliamentary constituencies – representing just over three million people in total – without a bank branch, while another 56 are left with only one branch remaining, researchers said.

New rules overseen by the Financial Conduct Authority (FCA) regulator came into effect last week.

They mean banks will need to give more consideration to a local community’s cash needs before deciding to close a branch.

The watchdog will require firms to check whether additional services would be needed should a branch shut its doors or an ATM be switched off – and keep facilities open until the additional cash services are available.

New FCA rules also give local residents more say over what their community’s cash needs are.

People can request an assessment of whether there are gaps in local cash access and where significant gaps are found, providers will have to deliver reasonable additional cash services.

Banks are also sharing facilities through banking hubs.

Which? said given the number of branches that have closed in recent years, it wants to see many more hubs opened.

Major banks have recently committed to opening 350 hubs by 2029.

Bolton West MP, Phil Brickell said: “It’s a huge disappointment to Bolton West that we have lost all our permanent branches across the constituency.  However, we have recently welcomed the Banking Hub on Winter Hey Lane in Horwich which allows five banks to be accessed through the week.

"Volunteers led by Lesley Monks in Westhoughton, have done great work in securing a banking hub for the town in the foreseeable future.

"Whilst many people are able to access their bank via the internet, we must remember that some people don’t have access to the internet and there are still some services which require counter usage”

Sam Richardson, deputy editor of Which? Money, said: “Bank branch closures can have severe impacts on local communities, including on those who still want to use cash. New rules to protect free access to cash have been hard won and should make banks think twice about shutting branches without adequate replacements.

“While Yorkshire and the Humber may hold the dubious record for the worst branch access, this is a nationwide problem. Banking hubs will play a key role in replacing shuttered branches, but their rollout remains far too slow for consumers to feel their benefits.

“The Government must hold banks’ feet to the fire to ensure the commitments they’ve made to set up 350 hubs by 2029 are met – and should be prepared to review the target upwards if necessary.”

A UK Finance spokesperson said: “The banking industry is committed to ensuring there is continued access to cash for those who need it. With fewer people visiting bank branches on a regular basis, firms have to make difficult decisions about maintaining their branches.

“Significant ongoing investment is being made to deliver this commitment, including shared banking hubs, which are being opened around the country with many opened across Yorkshire already.

“There is also the option to do a lot of day-to-day banking at Post Office branches across the country. If you are concerned about your local bank branch closing, please contact them and they will help you find the best alternative for your needs.”

Adrian Roberts, deputy chief executive of ATM and cash access network Link, said: “While more people are becoming comfortable banking and paying for things digitally, there are still millions of people who rely on cash or just prefer to use it.

“Our data shows that they aren’t just the oldest or the poorest in society, but also people who lack confidence or the skills and devices to bank digitally.

“The good news is that the access to cash rules set by the FCA mean we will be seeing more banking hubs on high streets all across the country, which alongside free-to-use ATMs and post offices will ensure access to cash is protected for many years to come. To date, Link has recommended 163 banking hubs.”

Cash Access UK, an organisation set up to help protect access to cash and funded by major banks, recently hit a total of one million transactions carried out in banking hubs throughout the UK.

Cat Farrow, customer and strategy director at Cash Access UK, said: “Banking hubs allow customers of all banks to come into one central location on the high street to complete basic banking services.

“These, alongside deposit services, which support small businesses are helping to protect access to cash in the community. To date, there are currently 85 banking hubs open across the country and we expect to have 100 open by the end of the year and hundreds more in the coming years. While more people are choosing to pay with their phones or contactless cards, it’s vital we continue to support people who rely on cash.”

The number of bank branches counted by Which? and the total per 100,000 people. The research was carried out up to September 23, 2024:

Scotland, 377, 6.9

West Midlands, 364, 6.0

Wales, 188, 5.9

Northern Ireland, 110, 5.8

South West, 324, 5.6

South East, 520, 5.5

London, 481, 5.4

North East, 142, 5.2

East of England, 328, 5.1

North West, 384, 5.1

East Midlands, 229, 4.6

Yorkshire and the Humber, 248, 4.4

The 30 constituencies without a bank branch, according to Which?:

Barnsley South

Bolton West

Bradford South

Central Suffolk and North Ipswich

Chatham and Aylesford

Chester South and Eddisbury

Colne Valley

Dagenham and Rainham

Doncaster East and the Isle of Axholme

East Worthing and Shoreham

Erith and Thamesmead

Glasgow North East

Glasgow South West

Liverpool Wavertree

Manchester Rusholme

Mid Bedfordshire

Mid Derbyshire

North East Derbyshire

Ossett and Denby Dale

Penistone and Stocksbridge

Plymouth Moor View

Rawmarsh and Conisbrough

Reading West and Mid Berkshire

Rhondda and Ogmore

Sheffield Hallam

St Helens North

Stockton West

Warrington North

West Ham and Beckton

York Outer

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