Rural communities hit by bank branch closures - MP

The closure of face-to-face banking services has left small businesses and communities "struggling", an MP says.

South Devon MP Caroline Voaden said the closure of 6,000 bank and building society branches nationally in the last 10 years had "the biggest impact on the most vulnerable people, the elderly, the disabled, those who can't use online services".

The Liberal Democrat told a parliamentary debate the closure of the last bank in Totnes, Devon, meant people faced a 13-mile (21km) round-trip to Paignton to visit the last remaining branch in her constituency.

Link, which runs banking hubs, said it was "satisfied" communities had "good access to cash" through post offices and cash machines.

Totnes artist Fiona Green, 83, who uses the bank for paying in and withdrawing cash said it was "a long haul" to Paignton, and it could be "a real problem" for people who did not bank online or via apps.

She said she believed "cash is king" and many creative people in her town took cash.

"If it's all done with credit cards and apps, it's really hard for the average Joe to get on with their lives."

She also said she thought banks should consider their customers and said a small banking hub was needed in Totnes.

A banking hub is a shared banking space where people can access bank services, such as paying in cash and bills.

Voaden said she had been told Totnes did not meet the criteria.

Green said: "You've got to consider the old and the elderly and the frail and anyone with any neurodivergent needs, they have to be helped."

She said the Post Office was sometimes "overcrowded" when she wanted to access the banking services it offered there.

She added: "When you can only take £200 at a time, it doesn't meet the needs."

Totnes resident Leo Trimming said he was concerned about the lack of banking services for people such as his son, who had a mild learning disability and wanted to be as independent as possible and deal with banking himself.

He said his son had had a good relationship with staff at Lloyds, which closed in Totnes in January, and could get his banking needs resolved with them independently.

Trimming said people with learning disabilities "can't cope" with the automated systems and call centre systems banks used, and his son had lost independence as he now needed help from his parents to do his banking.

He said offering cash machines as an alternative to banking did not take into account the need for reasonable adjustments "for people with disabilities and other conditions".

He added: "Companies aren't just about absolute profits - they are also a service."

Voaden told the debate customers needed face-to-face contact for dealing with issues such as the death of an account holder and they would "not want to deal with a chatbot".

Link which runs banking hubs said: "It's our job to carry out assessments when a bank branch closes.

"While we understand the disappointment about Totnes's bank branch closure, we are satisfied that the community continues have good access to cash through the Post Office and free-to-use ATMs."

An independent review for the government into access to banking services is due to be published in October.

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